“The hotel sector is insolvent and one quarter of all rooms across the country needs to be closed” according to a report commissioned by the Irish Hotel Federation and completed by Peter Bacon and Associates. Such a headline correctly suggests that there are worrying times ahead for hoteliers and their financiers.
Tifco Hotel Group recognises this fact which is why we have repositioned ourselves as one of the leading hotel management companies in the country. As an asset management company we have the ability to work directly with banks who feel it necessary to exercise their legal rights and take control of an asset away from the borrower by way of appointing a Receiver.
In such an event we feel it is important that the hotel remains trading, if at all possible, due to the impact a closure may have on the future value of the property. Therefore, Tifco can take full control of the operation while at the same time working with the Receiver during the initial and long term phases of the receivership process.
Tifco has the necessary resources to manage the operation of a distressed hotel(s) in addition to completing many of the tasks required of a Receiver. Such resources include in excess of 40 accounts personnel available to be called upon at very short notice. This accounting team includes highly qualified and experienced accountants of whom we have two chartered accountants and five management accountants. Also, we have a number of cost controllers and internal auditors within our group with experience in revenue and cash management, inventory control, stocktaking and fixed asset register management.
Once appointed by a bank/receiver, Tifco could take control and/or assist with the following duties:
- Ensure all necessary items/information are made available e.g. all accounting records, bank accounts, cheque books, keys, security codes, passwords, contracts, licenses etc.
- Complete a full inventory of fixed assets, stocks etc.
- Complete full cash counts including reconciliation of the deposit ledger
- Open new bank accounts
- Set up new service provider agreements
- Take control of all accounting issues such as day to day cash/revenue management, debt collection, pay critical vendors etc.
- Prepare a complete set of accounts for the company including profit and loss and a fully reconciled balance sheet properly supported by schedules of accruals, prepayments etc.
- Manage redundancies (if required) and/or continued processing of weekly/monthly payroll
We are confident that Tifco can increase the valuation placed on a hotel by growing its EBITDA within a short period of time. We can do this by way of centralizing both finance and sales & marketing functions within our group and therefore stripping out unnecessary costs, negotiate cheaper prices with suppliers due to the scale of our group and improve efficiencies throughout the hotel operation by implementing our standards of practise. Also, stakeholders can take comfort from the fact that we will ensure all health and safety legislation is adhered to at all times ensuring no exposure to risk for non compliance.