The hotel was a new build and opened in October 2007.
It was branded Ritz Carlton and was managed under a Ritz Carlton Management Agreement (so local expertise was absent).
The hotel entered into the process of examinership in November 2012 and a liquidator was appointed in February 2013.
The hotel was bought by Midwest Investment at a low cyclical point in the GFC.
A distressed asset bought at considerably below replacement value.
Investment Strategy
What we did
The initial focus was to reduce the cost base and to correctly position the property in the upscale market.
Hotel was rebranded from Ritz Carlton Enniskerry (the brand had high cost of operation) to Powerscourt Hotel (unbranded) and the management agreement was terminated.
Costs were removed by restructure Admin and General; F&B; Rooms and front of house
Payroll costs were further optimised with the introduction of tight payroll manning levels, along with Payroll software to ensure labour-scheduling targets were delivered and reviewed.
Contact
Discuss a project with us
Whether you hold an underperforming asset, are weighing an acquisition, or need an owner-side view on strategy and capital, we would be glad to talk it through.
