Company registration number 02925455 (England and Wales)
HARILELA HOTELS (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HARILELA HOTELS (UK) LIMITED
COMPANY INFORMATION
Directors
A Harilela
P Barden
V Harilela
(Appointed 1 August 2024)
K Harilela
(Appointed 1 August 2024)
Secretary
P Barden
Company number
02925455
Registered office
2nd Floor, Regis House
45 King William Street
London
United Kingdom
EC4R 9AN
Auditor
Azets Audit Services
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
HARILELA HOTELS (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
HARILELA HOTELS (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

London’s 12-month occupancy in 2024 reflected a period of stabilisation and refined growth within the luxury hospitality market. While the macro-economic landscape remained nuanced, London's hotel sector demonstrated resilience, though growth was more tempered compared to the rapid recovery seen in 2023. At The Hari Hotel London, occupancy maintained a strong position, averaging 81% from Q2 to Q4, a slight increase demonstrating continued market demand. Average Daily Rate (“ADR”), a reflection of the market’s steadiness, reached an average of £435, reflecting the brand’s commitment to premium service and the impact of ongoing inflationary pressures.

In early 2024, the hotel focused on enhancing guest experiences through targeted upgrades to its public spaces, on-going into 2025, and the introduction of bespoke wellness programs, aligning with the growing demand for experiential luxury and sustainable travel. This strategic investment aimed to further solidify The Hari’s position in a competitive market.

To the Competitive Set, and within the delicate geo-political and economic landscape, the hotel continues demonstrating its strong ability to capture and surpass market share, as records show.

2024’s turnover reached £11.7M, surpassing 2023’s figures by £350k, indicating successful strategies to increase rooms revenue and optimise F&B operations. Gross profit margin aligned to prior year at 48% (2024: 50%), a reflection of inflation impacted costs and increased long-term actions to further solidify our market presence. EBITDA reached £304k (£306k up on 2023).

While 2023 saw a market performance surge, 2024 presented, the expected, more measured growth trajectory. The increased supply of luxury hotels in London's key districts created a more competitive landscape. However, The Hari Hotel London capitalised on its established reputation and personalised service, maintaining a loyal clientele while pursuing new markets for long term returns. Demand drivers, including international travel and corporate events, remained strong, supporting healthy occupancy rates.

Looking forward, the focus remains on driving ADR through enhanced guest experiences and premium offerings. F&B performance is a key area of emphasis, with a focus on innovative menus and curated dining experiences to offset rising operational costs. The hotel remains invested in sustainable practices, aligning with the growing demand for eco-conscious luxury, all the while paralleling improved operational costs.

Management remains optimistic about continued performance improvement, with a focus on operational agility and adaptability in response to evolving market dynamics. The focus is to maintain a high level of personalised service, and to grow the hotels reputation as a destination for the discerning traveller.

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks. The main risks are:

 

Events adversely impacting international travel

The levels of occupancy and room rates can be adversely impacted by any events that may disrupt international travel. The company has contingency plans and promotions to increase demand from domestic travellers.

 

Economic developments

Any major economic or political changes in the geographical areas from which the company attracts business would put pressure on occupancy and room rates. The company is working towards attracting guests from a more diversified geographical spread.

 

Increased competition

Due to London's popularity as a tourist destination, the number of new hotels have increased in recent years. Any rapid increase in supply would adversely affect the room rates that can be charged. The hotel tries to distinguish itself by the quality of service it provides.

HARILELA HOTELS (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators

To monitor the risks detailed above, the company uses various KPIs like Occupancy, Average room rate, Revenue per available room and Online travel agents share of bookings. Additionally the directors also monitor STR Reporting to gauge performance and also review Market Metrix (wherein guests allocate scores for various elements of their stay) as well as TripAdvisor Index which rates hotels within the same category.

Future developments

The company recognises the need to remain competitive in the high-end hospitality sector. The company will therefore continue to maintain cost control and monitor and anticipate market trends.

 

Going concern

The company has made a loss for the year of £361,536 and a positive EBITDA of £303,656. At the balance sheet date the company has net current liabilities of £11,157,228.

The company is expected to retain a positive EBITDA in the ensuing accounting period and the directors have reviewed the company’s forecasts and budgets that cover a period of not less than twelve months from the date of approving the financial statements, including the expected extension of the parent company loan as well as measures to control the cost base, to conclude that they have reasonable expectations that the company will have sufficient working capital to fund its operations and meet its financial obligations as they fall due.

The parent company, Hotel Holdings (BVI) Limited, has also confirmed their commitment to continue supporting the company for the next 12 months from the date of approving these financial statements as stated per note 1.2.

 

On the basis of the above assessment, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Financial instruments and risk management

The company's financial instruments comprise of cash and bank balances, trade debtors, trade creditors and balances owed/ owing to group companies.

 

The company monitors its liquid resources and debtors closely to ensure adequate funding is available to finance its operations.

 

Credit risk

Exposure to credit risk is monitored regularly with credit checks performed on all clients requiring credit over certain limits. Payment is primarily by means of debit and credit cards so credit risk is considered low.

 

Liquidity risk

The company finances its operations from operating cash flows and funding from other group companies as and when required. The directors do not consider liquidity risk to be high.

 

Interest rate and foreign currency risk

The company monitors its interest-bearing borrowings as well as its exposure to foreign exchange which is minimal.

 

On behalf of the board

A Harilela
Director
16 April 2025
HARILELA HOTELS (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of the operation of The Hari Hotel, London.

 

Strategic report

The group has chosen, in accordance with section 414C of the Companies Act 2006, to set out the following information which would otherwise be required to be contained in the Directors' Report.

 

Review of the business, including future developments;

Financial risk management objective; and

Indication of exposure to liquidity and cash flow risk.

Results and dividends

The total loss after tax for the year ended 31 December 2024 was £362k (2023: £760k).

No ordinary dividends were paid (2023: £nil). The directors do not recommend payment of a final dividend.

Directors

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

A Harilela
M Kalra
(Resigned 1 August 2024)
P Barden
V Harilela
(Appointed 1 August 2024)
K Harilela
(Appointed 1 August 2024)
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services 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.

On behalf of the board
A Harilela
Director
16 April 2025
HARILELA HOTELS (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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.

HARILELA HOTELS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARILELA HOTELS (UK) LIMITED
- 5 -
Opinion

We have audited the financial statements of Harilela Hotels (UK) Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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.

Opinions on other matters prescribed by the Companies Act 2006

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

HARILELA HOTELS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARILELA HOTELS (UK) LIMITED
- 6 -
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 strategic report or 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.

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.

HARILELA HOTELS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARILELA HOTELS (UK) LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Ravi Hungsraz
Senior Statutory Auditor
For and on behalf of Azets Audit Services
28 April 2025
Chartered Accountants
Statutory Auditor
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
HARILELA HOTELS (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
11,726,783
11,379,334
Cost of sales
(6,080,208)
(5,669,401)
Gross profit
5,646,575
5,709,933
Administrative expenses
(5,598,466)
(5,954,536)
Other operating income
900
1,800
Operating profit/(loss)
4
49,009
(242,803)
Interest payable and similar expenses
8
(410,545)
(415,954)
Loss before taxation
(361,536)
(658,757)
Tax on loss
9
-
0
(100,760)
Loss and total comprehensive expense for the year
(361,536)
(759,517)

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

HARILELA HOTELS (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,420,271
1,561,220
Current assets
Stocks
11
54,364
43,332
Debtors
12
736,151
766,496
Cash at bank and in hand
1,445,607
918,742
2,236,122
1,728,570
Creditors: amounts falling due within one year
13
(13,393,350)
(4,463,526)
Net current liabilities
(11,157,228)
(2,734,956)
Total assets less current liabilities
(9,736,957)
(1,173,736)
Creditors: amounts falling due after more than one year
14
-
0
(8,201,685)
Net liabilities
(9,736,957)
(9,375,421)
Capital and reserves
Called up share capital
19
2
2
Profit and loss reserves
(9,736,959)
(9,375,423)
Total equity
(9,736,957)
(9,375,421)
The financial statements were approved by the board of directors and authorised for issue on 16 April 2025 and are signed on its behalf by:
A Harilela
Director
Company Registration No. 02925455
HARILELA HOTELS (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
2
(8,615,906)
(8,615,904)
Year ended 31 December 2023:
Loss and total comprehensive expense for the year
-
(759,517)
(759,517)
Balance at 31 December 2023
2
(9,375,423)
(9,375,421)
Year ended 31 December 2024:
Loss and total comprehensive expense for the year
-
(361,536)
(361,536)
Balance at 31 December 2024
2
(9,736,959)
(9,736,957)
HARILELA HOTELS (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
664,541
529,684
Interest paid
(19,537)
(11,773)
Net cash inflow from operating activities
645,004
517,911
Cash flows from investing activities
Purchase of tangible fixed assets
(118,139)
(1,686,886)
Net cash used in investing activities
(118,139)
(1,686,886)
Net increase/(decrease) in cash and cash equivalents
526,865
(1,168,975)
Cash and cash equivalents at beginning of year
918,742
2,087,717
Cash and cash equivalents at end of year
1,445,607
918,742
HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Harilela Hotels (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, Regis House, 45 King William Street, London, United Kingdom, EC4R 9AN. It's principal place of business is at 20 Chesham Place, Belgravia, London SW1X 8HQ.

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 £.

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

1.2
Going concern

The company has made a loss for the year of £true361,536 and a positive EBITDA of £303,656. At the balance sheet date the company has net current liabilities of £11,157,228.

The company is expected to retain a positive EBITDA in the ensuing accounting period and the directors have reviewed the company’s forecasts and budgets that cover a period of not less than twelve months from the date of approving the financial statements, including the expected extension of the parent company loan as well as measures to control the cost base, to conclude that they have reasonable expectations that the company will have sufficient working capital to fund its operations and meet its financial obligations as they fall due.

The parent company, Hotel Holdings (BVI) Limited, has also confirmed their commitment to continue supporting the company for the next 12 months from the date of approving these financial statements.

 

On the basis of the above assessment, the directors consider it appropriate to prepare the financial statements on a going concern basis.

1.3
Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax. Income from guests is recognised at the point at which the hotel accommodation and related services are provided. Income from space rental is recognised on a straight line basis over the term of the lease agreements. Income from non-guests for food and beverages is recognised when the food and beverage are provided.

1.4
Tangible fixed assets

Tangible fixed assets are recorded at cost less depreciation and impairment in value.

 

The tangible fixed assets are depreciated on a straight line basis to write off the cost over their estimated useful life of 4 to 8 years. The effect of the changes in accounting estimates is set out in Note 10.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
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.

1.8
Financial instruments

Basic financial instruments, like trade and other debtors and creditors are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. They are subsequently recognised at amortised cost using the effective interest rate method.

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.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities 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.

HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including trade and other creditors and loans from fellow group companies 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

Short term employee benefits, including holiday entitlement and other non-monetary benefits, and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
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.

1.15

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

There are no key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Hotel accommodation and related services
11,658,773
11,319,270
Rent receivable
68,010
60,064
11,726,783
11,379,334
2024
2023
£
£
Other revenue
Sundry income
900
1,800
900
1,800
HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(178,480)
4,319
Depreciation of owned tangible fixed assets
254,647
240,066
Loss on disposal of tangible fixed assets
4,441
-
Operating lease charges
1,762,226
1,675,120
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
26,500
23,500
For other services
Taxation compliance services
2,000
1,750
All other non-audit services
3,500
3,800
5,500
5,550
6
Employees

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

2024
2023
Number
Number
114
121

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,605,240
3,244,494
Social security costs
450,424
438,461
Pension costs
161,012
161,693
4,216,676
3,844,648
7
Directors' remuneration

The directors salaries are borne by the group companies this year and in the prior year.

HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Intercompany loan interest
410,545
415,954
9
Tax credit
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
-
0
100,760

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:

2024
2023
£
£
Loss before taxation
(361,536)
(658,757)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
(90,384)
(154,808)
Tax effect of expenses that are not deductible in determining taxable profit
20,896
1,525
Tax effect of utilisation of tax losses not previously recognised
(57,994)
-
0
Unutilised tax losses carried forward
-
0
407,265
Permanent capital allowances in excess of depreciation
24,846
(351,731)
Adjustment to the deferred tax on losses
-
0
100,760
Non-trade loan relationship deficit
102,636
97,749
Taxation charge for the year
-
100,760
HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
10
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 January 2024
3,464,592
Additions
118,139
Disposals
(8,237)
At 31 December 2024
3,574,494
Depreciation and impairment
At 1 January 2024
1,903,372
Depreciation charged in the year
254,647
Eliminated in respect of disposals
(3,796)
At 31 December 2024
2,154,223
Carrying amount
At 31 December 2024
1,420,271
At 31 December 2023
1,561,220
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
54,364
43,332
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
368,388
459,698
Prepayments and accrued income
353,501
292,536
721,889
752,234
Deferred tax asset (note 16)
14,262
14,262
736,151
766,496
HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
326,762
411,886
Amounts owed to group undertakings
11,844,614
2,877,389
Amounts due to directors
16,031
12,878
Taxation and social security
647,837
674,527
Other creditors
62,823
11,021
Accruals and deferred income
495,283
475,825
13,393,350
4,463,526

The company formally agreed the extension of the parent company loan with Hotel Holdings (BVI) Limited ("BVI") in the sum of £7,797,504 in January 2023. The repayment date of the loan is 31 December 2025, however post year end the directors of both the company and BVI are currently formalising a loan extension and as such at the year end the loan has been classified due within one year.

 

The loan is interest-bearing and the above balance is inclusive of loan interest amounting to £795,189 (2023: £404,181).

14
Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts owed to group undertakings
-
0
8,201,685
15
Loans and overdrafts

The company has a loan with its parent company, however it does not have any external loans or overdraft.

 

Its fellow group member, Harilela Hotels (Jersey) Limited, has loans and overdraft that are secured by a first legal charge over its property and a fixed and floating charge over its assets and the assets of Harilela Hotels (UK) Limited to whom the hotel is leased.

16
Deferred tax asset

The following is the sole deferred tax asset recognised by the company and movements thereon:

Assets
Assets
2024
2023
Balances:
£
£
Tax losses
14,262
14,262
There were no deferred tax movements in the year.

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
161,012
161,693

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.

18
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
442,829
498,387
Carrying amount of financial liabilities
Measured at amortised cost
12,745,513
11,990,684
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments in respect of the hotel lease, which fall due as follows:

2024
2023
£
£
Within one year
1,772,791
1,595,364
Between two and five years
7,048,904
5,923,842
In over five years
9,926,000
11,274,783
18,747,695
18,793,989
HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
21
Related party transactions

At the year end £16,031 (2023: £12,878) was due to the directors from the company. The balances are repayable on demand, unsecured and interest free.

 

The company leases the land, buildings and plant and equipment relating to the property at 20 Chesham Place from Harilela Hotels (Jersey) Limited, a fellow group member; the rent payable for the year ended 31 December 2024 amounted to £1,762,226 (2023: £1,675,120). At 31 December 2024, the company owed £3,139,965 (2023: £2,593,206) to Harilela Hotels (Jersey) Limited. Harilela Hotels (Jersey) Limited's bankers have a debenture over the fixed and floating assets of the company.

 

The company had a strategic advisory agreement with The Hari Hotels Ltd, a fellow group member, under which a management fee was payable to the latter, however this ending on 31 December 2023. The management fee payable amounted to £nil (2023: £263,454). At 31 December 2024, the company owed £297,889 (2023: £284,184) to The Hari Hotel Ltd.

 

At the year end Harilela Hotels (UK) Limited owed £8,406,760 (2023: due after more than one year £8,201,685) to Hotel Holdings (BVI) Limited which was due within one year. The company incurred loan interest and at the year end cumulatively owes £795,189 (2023: £404,181).

 

At the year end Harilela Hotels (UK) Limited owed £nil (2023: £nil) to Harilela Hotels (Singapore) PTE Ltd. The company incurred loan interest of £19,537 (2023: £11,773).

22
Ultimate controlling party

The company is a subsidiary undertaking of Hotel Holdings (BVI) Limited, a company incorporated in the British Virgin Islands. The directors regard Hotel Holdings (BVI) Limited to be the ultimate parent company of Harilela Hotels (UK) Limited. The accounts of Hotel Holdings (BVI) Limited are not available to the public.

23
Prior year adjustment

Management completed a review to align expenses with its business operations, and to ensure comparability the 2023 expenses were amended. The impact in 2023 resulted in an increase in cost of sales of £96,494 and a decrease in administrative expenses of £96,494.

The prior period adjustments do not give rise to any effect upon profit or equity.

HARILELA HOTELS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
24
Cash generated from operations
2024
2023
£
£
Loss for the year after tax
(361,536)
(759,517)
Adjustments for:
Taxation charged
-
0
100,760
Finance costs
410,545
415,954
Loss on disposal of tangible fixed assets
4,441
-
Depreciation of tangible fixed assets
254,647
240,066
Movements in working capital:
(Increase)/decrease in stocks
(11,032)
11,245
Decrease in debtors
30,345
372,482
Increase in creditors
337,131
148,694
Cash generated from operations
664,541
529,684
25
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
918,742
526,865
1,445,607
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