RSM UK rescues boutique hotel with sale to Leeds entrepreneur
The restructuring unit of a leading UK consultancy has given the Leeds hospitality sector a major boost. RSM administrators sold boutique hotel company ‘42 The Calls’ to local businessman Simon Pollard, who has ambitious plans to upgrade the site.
Gareth Harris and Keith Marshall of RSM Restructuring Advisory were appointed joint administrators of the Leeds landmark in February. Expensively renovated in the early 1990s, 42 The Calls is on the site of an 18th century flour mill near the Leeds Corn Exchange.
The four-star boutique has 41 rooms and was named the ‘Which? Business Hotel of the Year’ in 1999. It will continue to trade under the new management, with RSM helping ensure that all 14 employees keep their jobs. Buyer Simon Pollard plans to redevelop the property into a five-star retreat occupying the centre of Yorkshire’s biggest city, with the grandiose refurbishment project slated to begin in late 2018.
Gareth Harris, who is a RSM Restructuring Advisory partner, said, ‘We are delighted to announce the sale of the hotel to an investor who plans to restore it to its full former glory through a detailed plan of investment,
“We are very grateful for the support of the dedicated staff who have continued to provide excellent customer service throughout this difficult time. The deal will safeguard all jobs and present future opportunities for each employee,” he added.
RSM UK offers consulting services that cover a wide range of industries, from charities and healthcare, to pensions and manufacturing. The firm boasts substantial expertise in real estate and construction, advising on debt restructuring, M&A deals and distressed properties among other fields.
In helping rescue a star of the Leeds hospitality sector, RSM deepened its involvement in the UK’s thriving hotel industry. There was a growth in occupancy rates across all UK regions last year, encouraged by a budget accommodation sector in rude health.
Yet while the UK continues to attract tourists from Europe, the US and China, it is having a harder time tempting investors. A study from Deloitte reported that Amsterdam surpassed London as Europe’s hotel investment capital in 2017. International hotel investors expressed concern that Brexit and slow economic growth forecasts had taken the shine off London and other major British cities.
