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REGISTERED NUMBER: 11484891 (England and Wales)













STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

HSF LONDON LIMITED

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


HSF LONDON LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: L Riu Guell
J Trian Riu
N Riu Rodriguez





SECRETARY: P S Bunce





REGISTERED OFFICE: Riu Plaza London Victoria Hotel
1 Neathouse Place
Pimlico
London
SW1V 1LH





REGISTERED NUMBER: 11484891 (England and Wales)





AUDITORS: Watson Associates (Audit Services) Ltd
Statutory Auditor
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

REVIEW OF BUSINESS
The year ended 31 December 2024 marked the company's first full year of trading, following its commencement of operations on 28 July 2023. The company's turnover has increased by £20.12m, bringing total revenue to £31.16m (2023: £11.04m). This led to a gross profit of £20.55m (2023: £5.84m). The increase in revenue is mainly due to the company trading for a full 12 months but also from increasing occupancy rates month on month since opening.

The statement of financial position shows that the net carrying value of the Company's net assets at the year-end was £163.89m (2023: £157.63m).

Key Performance Indicators

The company reviews several KPI's to monitor performance of both the business and against competitors. The major KPI's which it uses for these purposes are:

- Occupancy rate - rooms occupied by hotel guests, expressed as a percentage of rooms that are available
- Average room rate - room revenue divided by the number of room nights sold
- Revenue per available room - room revenue divided by the number of room nights available
- Gross profit margin - gross profit divided by total hotel revenue

In summary, please see the following year on year comparison:

2023 2024 % Change
Occupancy Rates 81.6% 96.0% 17.6%
Average Room Rate
(ARR)

£198.33

£200.08

0.9%
Revenue per available
room (REVPAR)

£161.87

£192.08

18.7%
Gross Profit Margin 52.9% 65.9% 24.6%

PRINCIPAL RISKS AND UNCERTAINTIES
The Company is directly exposed to the risks associated with the hotel industry as follows:

a. Treasury operations

The company only has borrowings with the parent company, Hotel San Francisco S.A. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from the operations of the business.

b. Liquidity risk

The company manages its cash requirements to ensure that the company has sufficient liquid resources to meet the operating needs of the business. There are also adequate facilities in place to ensure the company meets all projected funding requirements and that the terms of the loan agreement are complied with.

c. Credit risk

The company is exposed to credit risk primarily through trade receivables, corporate accounts and travel agencies. To mitigate this risk, the hotel maintains strict credit control procedures, including pre-payment policies and regular monitoring of outstanding balances. Credit terms are offered selectively and customer creditworthiness is assessed before extending credit facilities.

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024


d. Strategic risk

The hotel operates in a competitive market where external factors such as economic downturns, changes in consumer preferences and shifts in travel patterns can impact business performance. The company mitigates strategic risks through continuous market analysis, diversified revenue streams and targeted marketing initiatives. The hotel regularly reviews its pricing strategies and operational efficiencies to adapt to evolving market conditions and maintain profitability.

FUTURE BUSINESS DEVELOPMENTS
The directors expect the Company to see a continuation in trading improvement in 2025. The directors are confident that occupancy rates will continue to increase and that a greater focus on cost management will improve the profitability of the company.

ON BEHALF OF THE BOARD:





J Trian Riu - Director


5 June 2025

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of a hotel operator.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

L Riu Guell
J Trian Riu

Other changes in directors holding office are as follows:

C Riu Guell - resigned 19 June 2024
N Riu Rodriguez - appointed 19 June 2024

FURTHER BUSINESS REVIEW AND RISKS
Following the completion of the construction of the hotel, the company commenced trading on 28 July 2023. There are no further significant construction works expected for 2024 and beyond.

The principal risks and uncertainties the company continues to face are treasury operations, liquidity risk, credit risk and strategic risk.

The parent company continues to provide ongoing support to the company, and as a result additional funding measures are not considered necessary. The liquidity of the company is stable for the current financial year and forecasts prepared for 2025 indicate that liquidity is expected to remain stable.

Occupancy rates for the hotel since opening have continually increased. Advance bookings looking ahead to 2025 are also at a strong level with further bookings expected as the year progresses.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J Trian Riu - Director


5 June 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HSF LONDON LIMITED

Opinion
We have audited the financial statements of HSF London Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HSF LONDON LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and indirect taxes, and we considered the extent to which non-compliance might have a material effect on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to achieve desired financial results and the manipulation of exceptional items and management bias in accounting estimates. Audit procedures performed by the engagement team included, but were not limited to:

- enquiries with management, including consideration of known or suspected instances of fraud and non-compliance with laws and regulations and examining supporting calculations where a provision has been made in respect of these;
- reading key correspondence with regulatory authorities in relation to compliance with certain employment laws and indirect tax matters;
- understanding and evaluating the design and implementation of management's controls designed to prevent and detect irregularities;
- challenging assumptions and judgements made by management in their significant accounting estimates;
- identifying and testing journal entries in particular and journal entries posted with unusual account combinations and postings by unusual users;

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HSF LONDON LIMITED


These are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Geoffrey David Slater (Senior Statutory Auditor)
for and on behalf of Watson Associates (Audit Services) Ltd
Statutory Auditor
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

10 June 2025

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £   

TURNOVER 31,160,945 11,039,176

Cost of sales (10,615,380 ) (5,203,485 )
GROSS PROFIT 20,545,565 5,835,691

Administrative expenses (8,578,090 ) (4,358,490 )
11,967,475 1,477,201

Other operating income 25,157 46,930
OPERATING PROFIT 5 11,992,632 1,524,131

Interest receivable and similar income - 258
11,992,632 1,524,389

Interest payable and similar expenses 6 (5,002,792 ) (9,034,768 )
PROFIT/(LOSS) BEFORE TAXATION 6,989,840 (7,510,379 )

Tax on profit/(loss) 7 (737,159 ) -
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

6,252,681

(7,510,379

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE
INCOME/(LOSS) FOR THE YEAR

6,252,681

(7,510,379

)

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
Notes £    £   
FIXED ASSETS
Intangible assets 8 11,111 16,793
Tangible assets 9 264,412,562 266,649,801
264,423,673 266,666,594

CURRENT ASSETS
Stocks 10 43,651 48,080
Debtors 11 3,246,943 1,123,655
Cash at bank and in hand 579,118 833,580
3,869,712 2,005,315
CREDITORS
Amounts falling due within one year 12 (2,361,749 ) (2,579,662 )
NET CURRENT ASSETS/(LIABILITIES) 1,507,963 (574,347 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

265,931,636

266,092,247

CREDITORS
Amounts falling due after more than one
year

13

(99,761,220

)

(108,459,204

)

PROVISIONS FOR LIABILITIES 16 (2,284,692 ) -
NET ASSETS 163,885,724 157,633,043

CAPITAL AND RESERVES
Called up share capital 17 178,000,001 178,000,001
Retained earnings 18 (14,114,277 ) (20,366,958 )
SHAREHOLDERS' FUNDS 163,885,724 157,633,043

The financial statements were approved by the Board of Directors and authorised for issue on 5 June 2025 and were signed on its behalf by:





J Trian Riu - Director


HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2023 58,000,001 (12,856,579 ) 45,143,422

Changes in equity
Issue of share capital 120,000,000 - 120,000,000
Total comprehensive loss - (7,510,379 ) (7,510,379 )
Balance at 31 December 2023 178,000,001 (20,366,958 ) 157,633,043

Changes in equity
Total comprehensive income - 6,252,681 6,252,681
Balance at 31 December 2024 178,000,001 (14,114,277 ) 163,885,724

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 13,776,730 2,161,811
Interest paid (775 ) -
Net cash from operating activities 13,775,955 2,161,811

Cash flows from investing activities
Purchase of intangible fixed assets (1,087 ) (11,013 )
Purchase of tangible fixed assets (329,330 ) (13,064,228 )
Interest received - 258
Net cash from investing activities (330,417 ) (13,074,983 )

Cash flows from financing activities
New loans in year - 11,418,000
Loan repayments in year (13,700,000 ) -
Net cash from financing activities (13,700,000 ) 11,418,000

(Decrease)/increase in cash and cash equivalents (254,462 ) 504,828
Cash and cash equivalents at
beginning of year

2

833,580

328,752

Cash and cash equivalents at end of
year

2

579,118

833,580

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit/(loss) before taxation 6,989,840 (7,510,379 )
Depreciation charges 2,573,339 2,104,193
Finance costs 5,002,792 9,034,768
Finance income - (258 )
14,565,971 3,628,324
Decrease/(increase) in stocks 4,429 (48,080 )
(Increase)/decrease in trade and other debtors (575,755 ) 248,270
Decrease in trade and other creditors (217,915 ) (1,666,703 )
Cash generated from operations 13,776,730 2,161,811

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024
31.12.24 1.1.24
£    £   
Cash and cash equivalents 579,118 833,580
Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 833,580 328,752


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24 Cash flow At 31.12.24
£    £    £   
Net cash
Cash at bank and in hand 833,580 (254,462 ) 579,118
833,580 (254,462 ) 579,118
Debt
Debts falling due after 1 year (107,946,813 ) 8,697,984 (99,248,829 )
(107,946,813 ) 8,697,984 (99,248,829 )
Total (107,113,233 ) 8,443,522 (98,669,711 )

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1. STATUTORY INFORMATION

HSF London Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover comprises room sales, restaurant sales and bar sales excluding discounts, value added tax and other sales taxes. Turnover is recognised as follows:

Room sales - Daily based on first evening of stay
Restaurant sales - Daily at the close of business
Bar sales - Daily at the close of business

Consideration received is recognised as turnover to the extent that the company has performed its contractual obligations in respect of that consideration.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Land- Not depreciated
Freehold property- 39 years straight line
Fixtures and fittings- 7 years straight line
Computer equipment- 5 years straight line

The construction of the hotel was completed during the period under review. Properties are carried at cost, which includes professional fees and other directly attributable costs that are necessary to bring the property to its operating condition, less any identified impairment loss.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation of each asset to its estimated residual value on a straight line basis over its expected useful life.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES - continued

Going concern
The company generated a profit after tax for the year of £6,252,681 (2023: £7,510,379 loss after tax) but has net assets of £163,885,724 (2023: £157,633,043). Notwithstanding, the financial statements have been prepared on a going concern basis which the directors consider to be appropriate due to the reasons set out below:

The company commenced trading on 28 July 2023 and in the year under review completed their first full year of trading, the directors have prepared forecasts for 2025 to reflect the trading nature of the hotel.

The forecasts show budgeted turnover for 2025 of £30,501,308 and a budgeted EBIT of £11,820,523 The interest costs due to the parent company Hotel San Francisco CA are to be deducted from the budgeted EBIT. Furthermore, budgeted room occupancy rates for the year is 93.87% which is consistent but a little lower than the occupancy rate seen in the current period of 96.0%.

The company has been financed by its parent company, Hotel San Francisco CA, to fund the construction work to bring the hotel in to use. During the year, loan repayments totalling £13.7 million were made, reducing both accrued interest and the capital balance. In the prior period, £120 million of the original loan balance was converted to equity and is now presented within share capital, resulting in a significant reduction in interest charges during the current year.

3. CRITICAL ACCOUNTING 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the Company’s accounting policies
There were no critical judgements identified in applying the Company’s accounting policies in the current year.

Key sources of estimation uncertainty
There are assumptions made in respect of the useful economic lives of tangible and intangible fixed assets along with related residual values as well as the recoverability of the unrecognised deferred tax assets and the related anticipated reversal of timing differences. These are based on best estimates at the time and useful economic lives of tangible and intangible fixed assets are reviewed periodically.

The Company had made assumptions concerning the future. The resulting assumptions will, by definition, seldom equal the related actual results. The assumptions that could have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Properties in the course of construction are carried at cost, less any identified impairment loss. Depreciation commenced during the year under review once the properties were ready for their intended use.

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 4,582,695 2,187,728
Social security costs 240,077 135,203
Other pension costs 25,550 12,614
4,848,322 2,335,545

The average number of employees during the year was as follows:
2024 2023

Management 4 2
Administration 8 6
Hotel Staff 74 36
86 44

2024 2023
£    £   
Directors' remuneration - -

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Employee benefits 25,247 153,689
Depreciation - owned assets 2,566,569 2,102,120
Computer software amortisation 6,769 2,073
Auditors' remuneration 27,500 24,000
Foreign exchange differences (18,509 ) 4,497

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Loan 5,002,017 9,034,768
Other Financial Expenses 775 -
5,002,792 9,034,768

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Deferred tax 737,159 -
Tax on profit/(loss) 737,159 -

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit/(loss) before tax 6,989,840 (7,510,379 )
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of 25% (2023 - 25%)

1,747,460

(1,877,595

)

Effects of:
Expenses not deductible for tax purposes 742 38,194
Capital allowances in excess of depreciation (332,669 ) (2,302,134 )
Utilisation of tax losses (1,708,019 ) -
Corporate Interest Restriction 750,504 2,047,394
Pre-trading expenditure - (1,005,002 )
Total land remediation relief deduction - (156,409 )
Carried forward trading losses - 3,255,552
Deferred Taxation 737,159 -
Other tax adjustments (458,018 ) -
Total tax charge 737,159 -

Deferred tax assets are calculated using the corporation tax rate at which they are expected to be utilised of 25.00%. Deferred tax in respect of tax losses are only recognised to the extent future taxable profits are available against which to utilise the deferred tax asset.

8. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 January 2024 18,866
Additions 1,087
At 31 December 2024 19,953
AMORTISATION
At 1 January 2024 2,073
Amortisation for year 6,769
At 31 December 2024 8,842
NET BOOK VALUE
At 31 December 2024 11,111
At 31 December 2023 16,793

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 January 2024 259,981,750 8,710,293 59,878 268,751,921
Additions 170,063 156,258 3,009 329,330
At 31 December 2024 260,151,813 8,866,551 62,887 269,081,251
DEPRECIATION
At 1 January 2024 1,685,410 412,740 3,970 2,102,120
Charge for year 1,290,746 1,263,560 12,263 2,566,569
At 31 December 2024 2,976,156 1,676,300 16,233 4,668,689
NET BOOK VALUE
At 31 December 2024 257,175,657 7,190,251 46,654 264,412,562
At 31 December 2023 258,296,340 8,297,553 55,908 266,649,801

10. STOCKS
2024 2023
£    £   
Stocks 43,651 48,080

11. DEBTORS
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors 1,336,867 1,073,046
Other debtors 20,537 15,769
Prepayments 342,006 34,840
1,699,410 1,123,655

Amounts falling due after more than one year:
Deferred Tax Asset 1,547,533 -

Aggregate amounts 3,246,943 1,123,655

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 525,661 635,476
Social security and other taxes 1,247,765 1,003,102
Other creditors 286,166 225,413
Accrued expenses 302,157 715,671
2,361,749 2,579,662

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

2024 2023
£ £
Other Creditors512,391512,391
Other Loans99,248,829107,946,813
99,761,220108,459,204


14. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due between one and two years:
Other loans - 1-2 years 99,248,829 107,946,813

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 20,306 17,705
Between one and five years 67,608 3,223
87,914 20,928

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 2,284,692 -

Deferred
tax
£   
Provided during year 2,284,692
Balance at 31 December 2024 2,284,692

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
178,000,001 Ordinary 1 178,000,001 178,000,001

HSF LONDON LIMITED (REGISTERED NUMBER: 11484891)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

18. RESERVES
Retained
earnings
£   

At 1 January 2024 (20,366,958 )
Profit for the year 6,252,681
At 31 December 2024 (14,114,277 )

19. RELATED PARTY DISCLOSURES

During the year under review £99,248,829 (2023: £107,946,813) was owed to its parent company Hotel San Francisco CA. Loan interest is charged at the quarterly SONIA rate plus 0.50%. Interest accrued during the year under review totalled £5,002,017 (2023: £9,034,768).

Additionally, during the year under review £nil (2023: £120,000,000) of amounts owed to Hotel San Francisco SA were capitalised and is now presented as part of share capital. The capitalisation took place on 3 October 2023.

During the year under review sales totalling £1,774,142 (2023: £194,970) were made to Reservation Shop SLU, a company under common control. At the balance sheet date £198,449 (2023: £80,607) was owed by Reservation Shop SLU.

During the year under review sales totalling £26,744 (2023: £46,898) were made to Riusa II S.A, a company under common control. Additionally, purchases totalling £3,139,438 (2023: £1,297,486) were made during the year. At the balance sheet date £277,283 (2023: £289,958) was owed to Riusa II S.A.

During the year under review purchases totalling £nil (2023: £7,353) were made from Riu Hotels S.A, a company under common control. No balance was owed to or by Riu Hotels S.A at the current or comparative reporting date.

20. ULTIMATE CONTROLLING PARTY

HSF London Limited is a wholly owned subsidiary of Hotel San Francisco SA, a company based in Spain.

Consolidated accounts are prepared by Hotel San Francisco SA, a company incorporated under the laws of Spain with registered office at C/ Llaüt s/n, 07610, Palma de Mallorca, CIF A07034515, Balearic Islands, Spain.