Jarvis Hotels

Telephone:

01494 473 800

Activities:

Jarvis is one of the UK’s largest hotel companies, with 59 properties in mainland Britain, of which almost all are franchised under the Ramada flag. It operates in the full-service, three- and four-star sectors and its properties are a mix of owned and leased hotels.

The hotels carry the Ramada, Ramada Plaza, and Ramada Resort names, with one operating under the Travelodge brand.

Chief Executive:

Steve Hebborn

Key People:

Finance director: Steve Hebborn
Chairman: John Jarvis

Commentary:

Jarvis went private in February 2004 to exercise more control over the way it ran its company. Since then, it has been going through a process of consolidation, and in 2004 sold or was in the process of selling 15 properties. The disposals will reduce the level of duplication Jarvis has in certain areas, and will see the end of Jarvis as a brand name.

The group’s plan to transform itself into a hotel management company, rather than an owner of bricks and mortar, has progressed rapidly, and Jarvis says it is now close to achieving its target 50/50 split between owned and leased hotels. In November 2004, it owned 37 properties.

Pure management deals will also be considered, although the group currently has just one management contract, for the Hotel Metro in Tamworth, Leicestershire.

US hotel chain Cendant’s acquisition in late 2004 of Ramada International Hotels and Resorts from Marriott International gaveJarvis an international boost, as it will bring all the worldwide Ramada hotels under a common brand standard and a single booking system. The deal made Jarvis part of a 1,000-strong hotel brand in 26 countries on six continents.

Outside mainland Britain, Ireland is a possible avenue for future expansion.

Strategy:

"The board is continuing its strategy to evolve the company towards a hospitality management services group, establishing links with major hotel brands and reducing the emphasis on ownership of hotel properties."

Source: preliminary results, 2003

Operating Data:

Number of hotels: 59, although 10 are currently up for sale

Number of employees: 4,980

Figures for the 26 weeks to 11 October 2003 show a pre-tax profit of £4m. This includes, for the first time, the £5.7m rent payable for the sale-and-leaseback of nine hotels. On a like-for-like basis, pre-tax profit fell by 38.5% to £5.1m.

Address:

Castle House
Desborough Road
High Wycombe,

UK