Company registration number 04215017 (England and Wales)
LUXURY HOTEL PARTNERS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
LUXURY HOTEL PARTNERS LTD
COMPANY INFORMATION
Directors
D Shamoon
J S Shamoon Arazi
S Leleu
Secretary
J Herbert
Company number
04215017
Registered office
7 Howick Place
London
SW1P 1BB
Auditor
Perrys Audit Limited
Chartered Accountants
4th Floor
399-401 Strand
London
WC2R 0LT
LUXURY HOTEL PARTNERS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

 

Luxury Hotel Partners is a management company specialising in the management of luxury hotels. We provide a service to our owned hotels in Spain, UK, Latvia and Estonia, meaning we can employ personnel residing in the UK to provide specialist services to these properties including sales, marketing, revenue management and PR. We receive a fixed fee for these services.

Fair review of the business

The company charges a percentage of turnover for the hotels it operates and manages, this ranges between 1% and 2% of the hotel’s turnover. In addition, we charge an incentive fee on profitability on the hotels final accounts. The company also undertakes a consultancy service advising hotels on entry into the SLH brand or in enhancing quality, this is normally cost for labour and travel with a mark up of between 10% and 20%.

 

Principal risks and uncertainties

The principal risks and uncertainties are that clients do not have sufficient funds to realise their dream of creating a luxury hotel and after consulting and advising for a prepaid fee we discover this and no management contract materialises.

 

For normal contracts we operate the entire hotel including the bank account and therefore can control our payments.

 

Many of the company’s direct costs are directly attributable to turnover. Consequently, when hotel management activity decreases, direct costs decrease proportionately.

 

Development and performance

The company has taken a different direction and is more focused on smaller projects that are more lucrative.

Key performance indicators

The company's turnover for 2022 is £1m (2021: £618k) and net loss for 2022 is £387k (2021: £138k loss).

On behalf of the board

S Leleu
Director
2 October 2023
LUXURY HOTEL PARTNERS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company in the year under review was that of hotel management services.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D Shamoon
J S Shamoon Arazi
S Leleu
Auditor

In accordance with the company's articles, a resolution proposing that Perrys Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Disclosure in the strategic report

The company's principal risks and uncertainties, performance and future developments are disclosed in the strategic report.

On behalf of the board
S Leleu
Director
2 October 2023
LUXURY HOTEL PARTNERS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LUXURY HOTEL PARTNERS LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
2022
2021
Notes
£
£
Turnover
2
1,084,914
618,599
Cost of sales
(465,045)
(303,927)
Gross profit
619,869
314,672
Administrative expenses
(1,006,813)
(251,709)
Exceptional item
3
-
0
(201,447)
Operating loss
4
(386,944)
(138,484)
Interest payable and similar expenses
6
(152)
-
0
Loss before taxation
(387,096)
(138,484)
Tax on loss
7
-
0
-
0
Loss for the financial year
(387,096)
(138,484)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

LUXURY HOTEL PARTNERS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
2022
2021
£
£
Loss for the year
(387,096)
(138,484)
Other comprehensive income
-
-
Total comprehensive income for the year
(387,096)
(138,484)
LUXURY HOTEL PARTNERS LTD (REGISTERED NUMBER: 04215017)
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 6 -
2022
2021
Notes
£
£
£
£
Current assets
Debtors
8
1,297,772
372,370
Cash at bank and in hand
6,631
484,219
1,304,403
856,589
Creditors: amounts falling due within one year
9
(1,203,756)
(368,846)
Net current assets
100,647
487,743
Capital and reserves
Called up share capital
11
391,742
391,742
Share premium account
2,678,593
2,678,593
Profit and loss reserves
(2,969,688)
(2,582,592)
Total equity
100,647
487,743

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 2 October 2023 and are signed on its behalf by:
S Leleu
Director
LUXURY HOTEL PARTNERS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2021
391,742
2,678,593
(2,444,108)
626,227
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
(138,484)
(138,484)
Balance at 31 December 2021
391,742
2,678,593
(2,582,592)
487,743
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(387,096)
(387,096)
Balance at 31 December 2022
391,742
2,678,593
(2,969,688)
100,647
LUXURY HOTEL PARTNERS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
1
Accounting policies
Company information

Luxury Hotel Partners Ltd is a private company limited by shares incorporated in England and Wales. The registered office is , 7 Howick Place, London, SW1P 1BB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Hotel Investment Partners Limited. These consolidated financial statements are available from its registered office, 7 Howick Place, London SW1P 1BB.

1.2
Going concern

The company has the support of its parent company. Furthermore, the parent company of the group has received an injection of capital amounting to £13.7m in 2022.true

 

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Turnover is recognised in the period in which the services were provided.

LUXURY HOTEL PARTNERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 9 -
1.4
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

LUXURY HOTEL PARTNERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 10 -
1.6
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.7
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.8
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Turnover
2022
2021
£
£
Turnover analysed by class of business
Hotel management services
1,084,914
618,599
3
Exceptional item
2022
2021
£
£
Expenditure
Exceptional item - bad debts
-
201,447
4
Operating loss
2022
2021
Operating loss for the year is stated after (crediting):
£
£
Exchange gains
-
0
(22,439)
LUXURY HOTEL PARTNERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
7
4

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
380,662
123,777
Pension costs
15,615
17,937
396,277
141,714
6
Interest payable and similar expenses
2022
2021
£
£
Other interest
152
-
0
7
Taxation

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Loss before taxation
(387,096)
(138,484)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(73,548)
(26,312)
Unutilised tax losses carried forward
73,548
26,312
Taxation charge for the year
-
-
LUXURY HOTEL PARTNERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
8
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
873,117
322,370
Amounts owed by group undertakings
-
0
50,000
Other debtors
262,752
-
0
Prepayments and accrued income
161,903
-
0
1,297,772
372,370
9
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
622,988
13,308
Amounts owed to group undertakings
410,000
345,818
Taxation and social security
33,814
2,475
Other creditors
129,804
445
Accruals and deferred income
7,150
6,800
1,203,756
368,846
10
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,615
17,937

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

11
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
391,742
391,742
391,742
391,742
LUXURY HOTEL PARTNERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
12
Related party transactions

Luxury Hotel Partners Limited accounts are included as part of the group financial statements of Hotel Investment Partners Limited and therefore this company has taken advantage of the exemptions conferred by section 33.1(a) of FRS 102 from the requirement to make disclosures concerning transactions with fellow group companies. The group financial statements of Hotel Investment Partners Limited are available from the registered office address at 7 Howick Place, London SW1P 1BB.

 

At the balance sheet date, included in other debtors is £110,877 (2021: £445 creditor) which is owed from a company with common directors.

 

13
Ultimate controlling party

The company's immediate parent company is Small Luxury Hotels of the World Management Limited.

 

The ultimate parent company is Hotel Investment Partners Limited, a company incorporated in England and Wales.

The ultimate controlling party is the Imperial Kensington Trust.

LUXURY HOTEL PARTNERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LUXURY HOTEL PARTNERS LTD
- 14 -
Opinion

We have audited the financial statements of Luxury Hotel Partners Ltd (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

LUXURY HOTEL PARTNERS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LUXURY HOTEL PARTNERS LTD
- 15 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

LUXURY HOTEL PARTNERS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LUXURY HOTEL PARTNERS LTD
- 16 -

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.

 

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

 

We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Declan McCusker
Senior Statutory Auditor
For and on behalf of Perrys Audit Limited
Chartered Accountants
Statutory Auditor
4th Floor
399-401 Strand
London
WC2R 0LT
3 October 2023
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