12+1 PROFIT IMPROVEMENT PLAN

Over the period 2000 to 2015, an annual survey of 45,000 UK hotel bedrooms by Hotstats reports a 24.1% increase in RevPAR for Provincial Hotels and yet a decrease of 23% in profitability over the same period.*

This confirms that since the start of the century, hotels have experienced severe margin pressure due, inter alia, to the rise of OTAs, Minimum/Living Wage, rises in utility costs, and food and liquor price increases.

THMC's 12+1 Profit Improvement Plan (P.I.P.) is a tailor made response, designed specifically to address the market pressures faced by independent hoteliers across the country. The one year, fixed price programme is unique to the market, providing a cost-effective MOT of the entire business, with the key aim of optimising performance and profitability.

How it works

A dedicated and highly experienced THMC Hotel Director is appointed to work in partnership with a hotel owner throughout the 12 month programme. Led by the Hotel Director, the 12+1 P.I.P. includes an end-to-end Business Review, assessing the practices and performance of the 12 Areas of Focus that impact all hotels.

Areas of Focus of the 12 + 1 Profit Improvement Plan

Growing Revenues

  • Brand Positioning & Strategy
  • Rooms & Revenue Management
  • Food & Beverage and Event Operations
  • Sales & Marketing Planning and On- and Off-line Activity

Reducing Costs

  • Food & Liquor Cost Control
  • Human Resources & Payroll Management
  • Procurement
  • Financial Management
  • Utilities Management
  • Health & Safety & Legal Compliance
  • Technology Applications
  • Insurance


Following the review of the business, a bespoke Profit Improvement Plan is developed, agreed, and implemented, with the Hotel Director and wider THMC team providing the counsel, strategy and tools to enable clients to enhance brand reputation, improve profitability and ultimately, maximise the value of their asset.

12+1 P.I.P. clients benefit not only from the expertise of their designated THMC Hotel Director, but also from direct access to the unrivalled collective market knowledge of the company's accomplished Board of Directors - Jeremy Logie OBE (Chairman), Roddy Watt (CEO), Alan Murray (CFO), Jill Chalmers (Director), Peter Lederer CBE (Director), and Charles Prew (Director) – as well as from THMC's extensive network of industry contacts and resources via sister company, the Buell Group.


*Source: Benchmarking Beyond RevPAR: What Lies Beneath, www.hotstats.com 2016

Roddy Watt, CEO

"The landscape for independent hotel owners is changing at an alarming rate” says Roddy Watt, THMC CEO, "and much of this change is in areas over which they have little or no control. This can be unnerving and worrying for independents. However, the tools have also developed to enable effective and profitable management despite rapid changes in market and economic forces.

"The importance of product differentiation, quality and value delivery have never been greater, but given access to technology and to real marketing knowledge, the independent owner is in a position to enjoy a very prosperous future.”

Testimonials

The Hotel Management Company’s 12+1 Profit Improvement Plan directly addresses the many challenges facing independent hotel owners and operators today. With RevPAR no longer a reliable single indicator of a hotel’s health, I applaud the initiative to look also at non-rooms revenue and, critically, costs and profitability. Even well-performing hotels would derive real benefit from this programme

Jonathan Langston, Managing Director, Hotstats

Having been part of the development of the 12 + 1 Profit Improvement Plan, and with a lifetime of hotel operations in the UK and overseas behind me, I can vouch for the fact that this programme will benefit even the best-operated hotels. Powerful, practical and highly personalised, this programme delivers enhanced performance and profitability

Christine Hodder, Lead Hotel Director, The Hotel Management Company
Ex-General Manager, The Stafford, London

As a career, corporate Hotelier working for Hyatt International for 30 years both overseas and in the UK, I have become increasingly aware of the challenges facing all hotel owners and operators in driving revenues, addressing rapidly escalating costs, and delivering bottom line. The 12+1 Profit Improvement Plan is a tremendous solution combining real specialist expertise and objectivity

Michael Gray, Lead Hotel Director, The Hotel Management Company
Ex-Vice President UK & Ireland - Hyatt Hotels

I have been working with The Hotel Management Company for over a year now. Their involvement has been invaluable throughout. Their knowledge of their field is exceptional and their ability to impact on the results of my business has been very significant. Their 12+1 Profit Improvement Plan is a tremendous programme which I applaud. THMC are professional, well organised and a joy to work with. Highly recommended!

Christopher Nevile, Proprietor, The Lincoln Hotel, Lincoln

As someone who has seen the UK independent hotel sector develop over several decades, and having operated one of the largest ‘independent’ hotels in the UK for many years, I am more aware than many of the increasing challenges facing our sector. The 12+1 Profit Improvement Plan directly addresses these challenges and the benefits it delivers are clear

Peter Lederer CBE, Director, The Hotel Management Company
Ex-Chairman and Managing Director, Gleneagles Hotel & Resort