Menzies Hotels

Telephone:

0870 242 3100

Activities:


Menzies Hotels is a collection of four-star hotels that have been managed by Bespoke Hotels since they were bought from administration in 2014 by the Topland Group.

The mixed portfolio of traditional and contemporary properties can be found in city centre, countryside and coastal resorts. Two of the hotels offer golfing facilities and two venues (in Bournemouth and Stratford-upon-Avon) also have timeshare apartments.

The Derby-based group was founded in 1992 by former Thistle Hotels executive Nick Menzies. Initially conceived as a mid-market chain, it focused on individual purchases from receivers or restructuring corporate players such as QMH or Forte and became established by taking on management contracts on distressed properties during the recession.

In the early days it was looking for hotels with 25 to 50 bedrooms but soon switched emphasis to larger, four-star properties with the disposal of its smaller, three-star properties.

Its biggest buys included a package of 10 hotels from Royal Bank of Scotland in 1996 (a deal that more than doubled its portfolio to 19 hotels and gave the bank a 25% stake in the company) and eight Thistles in 2007.
 
In 1998, when the group had grown from one to 21 hotels in six years, it pinned its hopes for future expansion on a stock market flotation but was put off by a disappointingly low share price – the victim of city enuui with hotel flotations and its preference for larger, London-based groups over smaller, provincial players.

It found new backers in 2000 when BancBoston Capital took a 55% stake in the company and was acquired in 2004 by Japanese venture capital firm Nikko Principal Investments (which also owned Roadchef). It changed hands again in 2006 when property investors Aaim and Robert Tchenguiz’s R20 bought the company.

Financial problems emerged when Menzies breached its bank covenants in 2009 and a management buy-out in 2011 followed the collapse of its holding company, Piccadilly Hotels, into administration. At this point, six hotels leased to Travelodge were put on the market.

Topland bought 12 of the 15 remaining Menzies hotels after the new holding company, Cordial Hotels, went into administration in 2013. Three other properties that were on shorter short-term leases were closed.

Topland, which is owned by billionaire brothers Sol and Eddie Zakay, owns around 22 hotels in total (including the Menzies portfolio) and intends to build up a £1b hotel empire.

Key People:

Revenue director Richard Grosvenor
Sales director Tracey Ractliffe 
Operations director Jonathan Worsedale
HR director Helen Smith

Commentary:

More links on Catererandhotelkeeper.co.uk

Not floating, but buoyant

Operating Data:

Number of hotels 12 four-star properties

Two hotels have golfing facilities (Menzies Stratford-upon-Avon and Menzies Cambridge) and two (Menzies Stratford-upon-Avon and Menzies Carlton) also offer timeshare apartments.  Waves Health and Leisure Clubs are available in six hotels.


Menzies Aberdeen Airport, Dyce
Menzies Birmingham, Stourport Manor, Stourport-on-Severn, near Kidderminster, Worcestershire
Menzies Birmingham City, Strathallan
Menzies Carlton, Bournemouth 
Menzies Cambridge
Menzies Derby, Mickleover Court
Menzies East Cliff Court, Bournemouth
Menzies Glasgow
Menzies Irvine
Menzies London Chigwell, Prince Regent
Menzies Stratford-upon-Avon, Welcombe Hotel and Golf Course, Warwickshire (timeshare apartments)
Menzies Woburn, Flitwick Manor, Bedfordshire.

Address:

Bakum House
Etwall Road
Mickleover,

UK