Ashley Hotels (Holdings) Limited Group accounts (Group and Company)

The owners of the parent company

Non-controlling interests

COMPANY REGISTRATION NUMBER: 08680774

Ashley Hotels (Holdings) Limited

Financial Statements

For the year ended

31 December 2024

Ashley Hotels (Holdings) Limited

Financial Statements

Year ended 31 December 2024

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Consolidated statement of comprehensive income	10

Consolidated statement of financial position	12

Company statement of financial position	14

Consolidated statement of changes in equity	15

Company statement of changes in equity	16

Consolidated statement of cash flows	17

Notes to the financial statements	18

Ashley Hotels (Holdings) Limited

Officers and Professional Advisers

The board of directors	A Hirji
	K Hirji
	N Hirji
	Z Hirji

Registered office	65-67 Belgrave Road
	London
	SW1V 2BG

Auditor	Streets Audit LLP
	Chartered accountants & statutory auditor
	Enterprise House
	38 Tyndall Court
	Commerce Road
	Lynch Wood
	Peterborough
	Cambridgeshire
	PE2 6LR

Ashley Hotels (Holdings) Limited

Strategic Report

Year ended 31 December 2024

Introduction The directors present their strategic report for Ashley Hotels (Holdings) Limited and its subsidiaries for the year ended 31 December 2024. Business review The Group continued its principal activities during the current year of owning and operating hotels. During the year the group acquired hotels in London and Liverpool. During the year the trade in both Ashley Hotels Rockingham Limited and Zasz Limited ceased. There are no prospects of future trade, and the companies are expected to remain dormant unless alternative use is identified. Principal risks and uncertainties Management continually monitor the key risks facing the Group together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually. The principal risks and uncertainties facing the Group are as follows: Economic downturn - the Group acknowledges the importance of maintaining close relationships with its key corporate customers in order to be able to identify the early sign of potential financial difficulties. Whilst economic activity is strengthening and corporate travel is increasing, the directors do monitor corporate sales levels to enable early action to be taken in the event of sales declining. Interest rate risk - the Group's exposure to market risk for the changes in interest rates relates primarily to its bank borrowings and hire purchase liabilities. The group seeks to manage this risk by keeping bank borrowings to a minimum. Exchange rate pressures - visitors to the UK, particularly from European countries may make decisions to travel based on exchange rate movements. Decreasing strength of the UK currency makes it less expensive for visitors, and as such can impact upon demand. The risk is managed by carefully monitoring and adjusting room rates based on demand. Competitor pressure - the risk of new hotels being developed in the markets in which the Group operates would result in sales being lost to new competition. This risk is managed by re-investment of income into the upkeep of the Group's property to ensure standards are maintained. In addition, the Group is service focused to encourage repeat business and assist customer satisfaction. Reliance on key suppliers - the Group's purchasing activities could expose it to over reliance on certain suppliers. The Group manages this risk by continually reviewing supplier pricing and maintaining relationships with potential alternative suppliers. Loss of key personnel - this would pose an operational challenge for the group. Management seeks to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised. Key performance indicators The directors use a range of performance measures to monitor and manage the business. The performance measures are split into financial and non-financial key performance indicators as set out below. Financial performance during the year The key financial performance indicators which are constantly reviewed by the directors are: 2024 2023 £ £ Turnover 8.9m 8.2m Gross profit 4.3m 4.5m Operating profit/(loss) 1.8m 1.4m EBITDA 2.6m 2.7m Financial position at the reporting date The balance sheet shows that the Group's net assets at the year end are at a healthy £10.7m (2023: £10.4m). Outlook The group continues to seek to grow by the continued investment in the hotels. The directors will continue to react to market conditions whilst managing the risk noted above. The cost of living crisis and high interest rates is causing wider economic disruption in the UK. The directors are monitoring this and potential consequences on the group.

This report was approved by the board of directors on 26 September 2025 and signed on behalf of the board by:

Z Hirji

Director

Registered office:

65-67 Belgrave Road

London

SW1V 2BG

Ashley Hotels (Holdings) Limited

Directors' Report

Year ended 31 December 2024

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

Directors

The directors who served the company during the year were as follows:

A Hirji
K Hirji
N Hirji
Z Hirji

Dividends

Particulars of recommended dividends are detailed in note 14 to the financial statements.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' 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 group and the company and the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgments 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 26 September 2025 and signed on behalf of the board by:

Z Hirji

Director

Registered office:

65-67 Belgrave Road

London

SW1V 2BG

Ashley Hotels (Holdings) Limited

Independent Auditor's Report to the Members of Ashley Hotels (Holdings) Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Ashley Hotels (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, 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 FRS 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 group's and of the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's or the parent 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent 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: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company 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 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 group's and the parent 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 group or the parent 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. 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: 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. 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment and health and safety legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - inquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 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.

Jonathan Day

(Senior Statutory Auditor)

For and on behalf of

Streets Audit LLP

Chartered accountants & statutory auditor

Enterprise House

38 Tyndall Court

Commerce Road

Lynch Wood

Peterborough

Cambridgeshire

PE2 6LR

29 September 2025

Ashley Hotels (Holdings) Limited

Consolidated Statement of Comprehensive Income

Year ended 31 December 2024

		2024			2023
		Continuing operations	Discont'd operations	Total	Continuing operations	Discont'd operations	Total
Note		£	£	£	£	£	£
Turnover	4	7,879,833	1,066,809	8,946,642	6,593,165	1,557,424	8,150,589

Cost of sales	( 3,906,961)	( 770,773)	( 4,677,734)	( 2,648,658)	( 1,001,286)	( 3,649,944)
	------------	------------	------------	------------	------------	------------
Gross profit	3,972,872	296,036	4,268,908	3,944,507	556,138	4,500,645

Administrative expenses		( 2,395,031)	( 148,307)	( 2,543,338)	( 2,549,906)	( 638,207)	( 3,188,113)
Other operating income	5	28,085	–	28,085	37,197	11,400	48,597
		------------	---------	------------	------------	---------	------------
Operating profit	6	1,605,926	147,729	1,753,655	1,431,798	( 70,669)	1,361,129

Gain on financial assets at fair value through profit or loss		176,945	–	176,945	458,700	–	458,700
Share of profit/(loss) of associates	17	9,659	–	9,659	( 10,970)	–	( 10,970)
Income from other fixed asset investments	10	74,073	–	74,073	87,933	–	87,933
Other interest receivable and similar income	11	309,103	–	309,103	536,695	–	536,695
Interest payable and similar expenses	12	( 1,369,077)	( 105,017)	( 1,474,094)	( 1,187,783)	( 147,697)	( 1,335,480)
		------------	---------	------------	------------	---------	------------
Profit before taxation		806,629	42,712	849,341	1,316,373	( 218,366)	1,098,007

Tax on profit	13	( 640,279)	329,984	( 310,295)	( 456,169)	( 49,025)	( 505,194)
		---------	---------	---------	------------	---------	------------
Profit for the financial year and total comprehensive income		166,350	372,696	539,046	860,204	( 267,391)	592,813
		---------	---------	---------	------------	---------	------------

Ashley Hotels (Holdings) Limited

Consolidated Statement of Comprehensive Income (continued)

Year ended 31 December 2024

	2024			2023
	Continuing operations	Discont'd operations	Total	Continuing operations	Discont'd operations	Total
Note	£	£	£	£	£	£

Profit for the financial year attributable to:

Ashley Hotels (Holdings) Limited

Consolidated Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	16	23,141,766	20,321,946
Investments:	17
Investments in associates		367,669	358,010
		-------------	-------------
		23,509,435	20,679,956

Current assets

Stocks	18	34,253	29,206
Debtors	19	2,445,367	1,332,581
Investments	20	7,770,749	7,206,542
Cash at bank and in hand		453,834	2,574,075
		-------------	-------------
		10,704,203	11,142,404

Creditors: amounts falling due within one year	21	7,803,599		21,502,769
		-------------		-------------
Net current assets/(liabilities)			2,900,604	( 10,360,365)
			-------------	-------------
Total assets less current liabilities			26,410,039	10,319,591

Creditors: amounts falling due after more than one year	22		15,526,529	11,705

Provisions

Taxation including deferred tax	24	158,812	( 167,924)
		-------------	-------------
Net assets		10,724,698	10,475,810
		-------------	-------------

Capital and reserves

Called up share capital	27	100	100
Profit and loss account	28	10,770,876	10,516,555
		-------------	-------------
Equity attributable to the owners of the parent company		10,770,976	10,516,655

Non-controlling interests	( 46,278)	( 40,845)
	-------------	-------------
	10,724,698	10,475,810
	-------------	-------------

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

Ashley Hotels (Holdings) Limited

Consolidated Statement of Financial Position (continued)

31 December 2024

These financial statements were approved by the board of directors and authorised for issue on 26 September 2025 , and are signed on behalf of the board by:

Z Hirji

Director

Company registration number: 08680774

Ashley Hotels (Holdings) Limited

Company Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	16	98,554	139,556
Investments	17	4,545,931	4,545,931
		------------	------------
		4,644,485	4,685,487

Current assets

Debtors	19	8,147,781	4,237,357
Investments	20	7,770,749	7,206,542
Cash at bank and in hand		317,862	1,550,546
		-------------	-------------
		16,236,392	12,994,445

Creditors: amounts falling due within one year	21	13,611,471		10,246,998
		-------------		-------------
Net current assets			2,624,921	2,747,447
			------------	------------
Total assets less current liabilities			7,269,406	7,432,934

Creditors: amounts falling due after more than one year	22		7,233	11,705

Provisions

Taxation including deferred tax	24	( 182,590)	( 201,117)
		------------	------------
Net assets		7,444,763	7,622,346
		------------	------------

Capital and reserves

Called up share capital	27	100	100
Profit and loss account	28	7,444,663	7,622,246
		------------	------------
Shareholders funds		7,444,763	7,622,346
		------------	------------

The profit for the financial year of the parent company was £ 112,575 (2023: £ 1,696,600 ).

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

These financial statements were approved by the board of directors and authorised for issue on 26 September 2025 , and are signed on behalf of the board by:

Z Hirji

Director

Company registration number: 08680774

Ashley Hotels (Holdings) Limited

Consolidated Statement of Changes in Equity

Year ended 31 December 2024

		Called up share capital	Profit and loss account	Equity attributable to the owners of the parent company	Non-controlling interests	Total
		£	£	£	£	£
At 1 January 2023		100	11,160,089	11,160,189	( 22,389)	11,137,800

Profit for the year			611,269	611,269	( 18,456)	592,813
		----	-------------	-------------	--------	-------------
Total comprehensive income for the year		–	611,269	611,269	( 18,456)	592,813

Dividends paid and payable	14	–	( 1,254,803)	( 1,254,803)	–	( 1,254,803)
		----	-------------	-------------	--------	-------------
Total investments by and distributions to owners		–	( 1,254,803)	( 1,254,803)	–	( 1,254,803)

At 31 December 2023		100	10,516,555	10,516,655	( 40,845)	10,475,810

Profit for the year			544,479	544,479	( 5,433)	539,046
		----	-------------	-------------	--------	-------------
Total comprehensive income for the year		–	544,479	544,479	( 5,433)	539,046

Dividends paid and payable	14	–	( 290,158)	( 290,158)	–	( 290,158)
		----	---------	---------	----	---------
Total investments by and distributions to owners		–	( 290,158)	( 290,158)	–	( 290,158)

		----	-------------	-------------	--------	-------------
At 31 December 2024		100	10,770,876	10,770,976	( 46,278)	10,724,698
		----	-------------	-------------	--------	-------------

Ashley Hotels (Holdings) Limited

Company Statement of Changes in Equity

Year ended 31 December 2024

		Called up share capital	Profit and loss account	Total
		£	£	£
At 1 January 2023		100	7,180,449	7,180,549

Profit for the year			1,696,600	1,696,600
		----	------------	------------
Total comprehensive income for the year		–	1,696,600	1,696,600

Dividends paid and payable	14	–	( 1,254,803)	( 1,254,803)
		----	------------	------------
Total investments by and distributions to owners		–	( 1,254,803)	( 1,254,803)

At 31 December 2023		100	7,622,246	7,622,346

Profit for the year			112,575	112,575
		----	------------	------------
Total comprehensive income for the year		–	112,575	112,575

Dividends paid and payable	14	–	( 290,158)	( 290,158)
		----	---------	---------
Total investments by and distributions to owners		–	( 290,158)	( 290,158)

		----	------------	------------
At 31 December 2024		100	7,444,663	7,444,763
		----	------------	------------

Ashley Hotels (Holdings) Limited

Consolidated Statement of Cash Flows

Year ended 31 December 2024

	2024	2023
	£	£

Cash flows from operating activities

Profit for the financial year	539,046	592,813

Adjustments for:
Depreciation of tangible assets	600,794	798,803
Amortisation of intangible assets	–	18,750
Gain on financial assets at fair value through profit or loss	(176,945)	(458,700)
Share of profit of associates	( 9,659)	10,970
Income from other fixed asset investments	( 74,073)	( 87,933)
Other interest receivable and similar income	( 309,103)	( 536,695)
Interest payable and similar expenses	1,474,094	1,335,480
Gains on disposal of tangible assets	( 166,708)	–
Tax on profit	310,295	505,194

Changes in:
Stocks	( 5,047)	3,851
Trade and other debtors	( 1,203,240)	2,265,410
Trade and other creditors	213,105	743,187
	------------	------------
Cash generated from operations	1,192,559	5,191,130

Interest paid	( 1,474,094)	( 1,335,480)
Interest received	309,103	536,695
Tax paid	( 279,985)	( 416,365)
	------------	------------
Net cash (used in)/from operating activities	( 252,417)	3,975,980
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 6,817,123)	( 739,629)
Proceeds from sale of tangible assets	3,563,217	–
Purchases of other investments	( 823,078)	( 3,011,543)
Proceeds from sale of other investments	435,816	2,902,711
Fair value movement of investments	74,073	87,933
	------------	------------
Net cash used in investing activities	( 3,567,095)	( 760,528)
	------------	------------

Cash flows from financing activities

Proceeds from borrowings	2,001,427	( 2,669,351)
Payments of finance lease liabilities	( 11,998)	( 11,997)
Dividends paid	( 290,158)	( 1,254,803)
	------------	------------
Net cash from/(used in) financing activities	1,699,271	( 3,936,151)
	------------	------------

Net decrease in cash and cash equivalents	( 2,120,241)	( 720,699)
Cash and cash equivalents at beginning of year	2,574,075	3,294,774
	------------	------------
Cash and cash equivalents at end of year	453,834	2,574,075
	------------	------------

Ashley Hotels (Holdings) Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 65-67 Belgrave Road, London, SW1V 2BG.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

No disclosure exemptions are available under FRS102.

Consolidation

The financial statements consolidate the financial statements of the Group and all of its subsidiary undertakings. The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes. Details of the subsidiaries included in the consolidated financial statements are disclosed on note 17. The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not included its individual statement of comprehensive income.

Non-controlling interests

Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination.

The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are disclosed in the accounting policies. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: 1 Depreciation charge The annual depreciation charge for each class of tangible fixed asset is based on an estimate of the useful economic life of the respective assets. This is reviewed periodically by the directors to ensure that they reflect both the external and internal factors. 2 Impairment of debtors The impairment is based on the directors opinion that the debts are not recoverable in full. This is reviewed periodically. 3 Cost of land The land has included at a cost estimated by the directors.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the provision of hotel accommodation and other associated income streams is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	5 years
Licence	-	5 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	2% straight line
Plant and machinery	-	15% straight line
Fixtures and fittings	-	15% straight line
Motor Vehicles	-	15% straight line
Equipment	-	15 % straight line

	Other fixed assets	-	15 % straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Financial instruments

The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Rendering of hotel services	8,946,642	8,150,589
	------------	------------

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

5. Other operating income

	2024	2023
	£	£
Rental income	27,650	29,745
Other operating income	435	18,852
	--------	--------
	28,085	48,597
	--------	--------

Other operating income The group received other miscellaneous operating income £nil (2023: £8,852).

6. Operating (loss)/profit

Operating profit or loss is stated after charging/crediting:

	2024	2023
	£	£
Amortisation of intangible assets	–	18,750
Depreciation of tangible assets	600,794	798,803
Gains on disposal of tangible assets	( 166,708)	–
Operating lease costs	110,000	–
	---------	---------

7. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	38,000	35,000
	--------	--------

8. Staff costs

The average number of persons employed by the group during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Administrative staff	143	126
Directors	4	4
	----	----
	147	130
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	2,578,274	2,101,986
Social security costs	177,474	146,453
Other pension costs	82,709	147,888
	------------	------------
	2,838,457	2,396,327
	------------	------------

The average number of employees employed by undertakings that are proportionately consolidated was 12 (2023 - 12).

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	43,200	43,200
Company contributions to defined contribution pension plans	37,500	123,000
	--------	---------
	80,700	166,200
	--------	---------

The number of directors who accrued benefits under company pension plans was as follows:

	2024	2023
	No.	No.
Defined contribution plans	4	4
	----	----

The directors are considered to be key management.

10. Income from other fixed asset investments

	2024	2023
	£	£
Dividends received from current asset investments	74,073	87,933
	--------	--------

11. Other interest receivable and similar income

	2024	2023
	£	£
Interest on cash and cash equivalents	22,518	84,555
Interest on bank deposits	174,585	147,018
Other interest receivable and similar income	112,000	305,122
	---------	---------
	309,103	536,695
	---------	---------

12. Interest payable and similar expenses

	2024	2023
	£	£
Interest on banks loans and overdrafts	1,474,094	1,335,480
	------------	------------

13. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	–	226,897
Adjustments in respect of prior periods	( 25,726)	( 13,373)
	--------	---------
Total UK current tax	( 25,726)	213,524

Foreign current tax expense	9,285	11,017
	--------	---------
Total current tax	( 16,441)	224,541
	--------	---------

Deferred tax:

Origination and reversal of timing differences	326,736	280,653
	---------	---------
Tax on profit	310,295	505,194
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 23.52 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	849,341	1,098,007
	---------	------------
Profit on ordinary activities by rate of tax	212,335	255,901
Adjustment to tax charge in respect of prior periods	( 25,726)	( 13,373)
Effect of expenses not deductible for tax purposes	29,777	121,370
Effect of capital allowances and depreciation	84,624	130,279
Foreign tax	9,285	11,017
	---------	------------
Tax on profit	310,295	505,194
	---------	------------

14. Dividends

	2024	2023
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	290,158	1,254,803
	---------	------------

15. Intangible assets

Group	Goodwill	Licence	Total
	£	£	£
Cost
At 1 January 2024	1,272,923	25,000	1,297,923
Disposals of previously acquired businesses	( 1,005,152)	–	( 1,005,152)
	------------	--------	------------
At 31 December 2024	267,771	25,000	292,771
	------------	--------	------------
Amortisation
At 1 January 2024	1,272,923	25,000	1,297,923
Disposals of previously acquired businesses	( 1,005,152)	–	( 1,005,152)
	------------	--------	------------
At 31 December 2024	267,771	25,000	292,771
	------------	--------	------------
Carrying amount
At 31 December 2024	–	–	–
	------------	--------	------------
At 31 December 2023	–	–	–
	------------	--------	------------

The company has no intangible assets.

16. Tangible assets

Group	Land and buildings	Plant and machinery	Fixtures, fittings and equipment	Motor vehicles	Other fixed assets	Total
	£	£	£	£	£	£
Cost
At 1 Jan 2024	22,829,717	2,561,920	926,715	350,462	46,763	26,715,577
Additions	6,743,116	–	74,007	–	–	6,817,123
Disposals	( 3,633,741)	( 935,618)	( 135,837)	–	( 22,441)	( 4,727,637)
	-------------	------------	---------	---------	--------	-------------
At 31 Dec 2024	25,939,092	1,626,302	864,885	350,462	24,322	28,805,063
	-------------	------------	---------	---------	--------	-------------
Depreciation
At 1 Jan 2024	3,089,811	2,289,368	769,647	201,790	43,015	6,393,631
Charge for the year	353,307	103,493	92,324	48,022	3,648	600,794
Disposals	( 361,807)	( 816,905)	( 129,975)	–	( 22,441)	( 1,331,128)
	-------------	------------	---------	---------	--------	-------------
At 31 Dec 2024	3,081,311	1,575,956	731,996	249,812	24,222	5,663,297
	-------------	------------	---------	---------	--------	-------------
Carrying amount
At 31 Dec 2024	22,857,781	50,346	132,889	100,650	100	23,141,766
	-------------	------------	---------	---------	--------	-------------
At 31 Dec 2023	19,739,906	272,552	157,068	148,672	3,748	20,321,946
	-------------	------------	---------	---------	--------	-------------

Company	Motor vehicles	Equipment	Total
	£	£	£
Cost
At 1 January 2024	304,147	6,453	310,600
Additions	–	886	886
	---------	-------	---------
At 31 December 2024	304,147	7,339	311,486
	---------	-------	---------
Depreciation
At 1 January 2024	166,936	4,108	171,044
Charge for the year	41,075	813	41,888
	---------	-------	---------
At 31 December 2024	208,011	4,921	212,932
	---------	-------	---------
Carrying amount
At 31 December 2024	96,136	2,418	98,554
	---------	-------	---------
At 31 December 2023	137,211	2,345	139,556
	---------	-------	---------

Included in freehold property is freehold land at a cost of £8,076,712 (2023: 6,976,712) which is not depreciated. Land and buildings depreciation includes impairment of £698,457 (2023: £698,457).Disposal of freehold land at a cost of £400,000 occurred during the current financial year which weren't depreciated.

17. Investments

Group	Interests in associates
	£
Share of net assets/cost
At 1 January 2024	358,010
Share of profit or loss	9,659
	---------
At 31 December 2024	367,669
	---------
Impairment
At 1 January 2024 and 31 December 2024	–
	---------

Carrying amount
At 31 December 2024	367,669
	---------
At 31 December 2023	358,010
	---------

Company	Shares in group undertakings	Shares in participating interests	Total
	£	£	£
Cost
At 1 January 2024	5,528,169	51	5,528,220
Additions	1	–	1
Disposals	( 1)	–	( 1)
	------------	----	------------
At 31 December 2024	5,528,169	51	5,528,220
	------------	----	------------
Impairment
At 1 January 2024 and 31 December 2024	982,289	–	982,289
	------------	----	------------

Carrying amount
At 31 December 2024	4,545,880	51	4,545,931
	------------	----	------------
At 31 December 2023	4,545,880	51	4,545,931
	------------	----	------------

Subsidiaries, associates and other investments

Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:

	Registered office	Class of share	Percentage of shares held
Subsidiary undertakings
Ashley Hotels Andover Limited	65-67 Belgrave Road, London, England, SW1V 2BG	Ordinary	100
Ashley Hotels Rockingham Limited	65-67 Belgrave Road, London, England, SW1V 2BG	Ordinary	100
Ashley Hotels Salisbury Limited	65-67 Belgrave Road, London, England, SW1V 2BG	Ordinary	100
Ashley Hotels Southampton Limited	65-67 Belgrave Road, London, England, SW1V 2BG	Ordinary	100
Ashley Hotels Victoria Limited	65-67 Belgrave Road, London, England, SW1V 2BG	Ordinary	100
Ashley Hotels Management Limited (ex Ashley Serviced Offices Limited)	65-67 Belgrave Road, London, England, SW1V 2BG	Ordinary	100

Ashley Hotels Liverpool Limited (ex Ashley Hotels Manchester Limited)	01 Oaklands Road, London, England, N20 8BD	Ordinary	100
Ashley Hotels Operations Limited (ex White Hart Hotel Salisbury Limited)	65-67 Belgrave Road, London, England, SW1V 2BG	Ordinary	100
Zasz Limited	150 Headstone Lane, Harrow, England, HA2 6JT	Ordinary	80

Other significant holdings
Ashley Hotels Farnborough Limited	65-67 Belgrave Road, London, England, SW1V 2BG	Ordinary	50

The group does not control Ashley Hotels Farnborough Limited and it is therefore treated as an associated company. The company disposed of its 100% investment in Ashley Hotels SA Limited (Dormant) in the year.

18. Stocks

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Raw materials and consumables	34,253	29,206	–	–
	--------	--------	----	----

19. Debtors

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Trade debtors	8,774	29,057	–	–
Amounts owed by group undertakings	–	–	6,023,814	3,116,307
Amounts owed by undertakings in which the company has a participating interest	925,974	923,059	925,974	923,059
Prepayments and accrued income	250,892	262,946	–	–
Directors loan account	72,889	52,319	157,134	136,134
Other debtors	1,186,838	65,200	1,040,859	61,857
	------------	------------	------------	------------
	2,445,367	1,332,581	8,147,781	4,237,357
	------------	------------	------------	------------

The debtors above include the following amounts falling due after more than one year:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Other debtors	96,250	–	–	–
	--------	----	----	----

20. Investments

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Other investments	7,770,749	7,206,542	7,770,749	7,206,542
	------------	------------	------------	------------

21. Creditors: amounts falling due within one year

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Bank loans and overdrafts	6,101,094	19,618,963	3,170,754	1,527,692
Trade creditors	663,388	658,755	21,084	33,181
Amounts owed to group undertakings	–	–	10,340,963	8,500,427
Accruals and deferred income	461,168	258,249	47,000	45,000
Corporation tax	708	297,134	–	86,030
Social security and other taxes	276,605	264,283	19,514	31,311
Obligations under finance leases and hire purchase contracts	–	7,526	–	7,526
Other creditors	300,636	397,859	12,156	15,831
	------------	-------------	-------------	-------------
	7,803,599	21,502,769	13,611,471	10,246,998
	------------	-------------	-------------	-------------

Bank loans are secured by way of a debenture over the freehold properties of the group and by way of a partial personal guarantee from the directors.

The hire purchase agreements are secured against the assets to which they relate.

22. Creditors: amounts falling due after more than one year

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Bank loans and overdrafts	15,519,296	–	–	–
Obligations under finance leases and hire purchase contracts	7,233	11,705	7,233	11,705
	-------------	--------	-------	--------
	15,526,529	11,705	7,233	11,705
	-------------	--------	-------	--------

Bank loans are secured by way of a debenture over the freehold properties of the group and by way of a partial personal guarantee from the directors.

The hire purchase agreements are secured against the assets to which they relate.

23. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Not later than 1 year	–	7,526	–	7,526
Later than 1 year and not later than 5 years	7,233	11,705	7,233	11,705
	-------	--------	-------	--------
	7,233	19,231	7,233	19,231
	-------	--------	-------	--------

24. Provisions

Group	Deferred tax (note 25)
	£
At 1 January 2024	( 167,924)
Additions	326,736
	---------
At 31 December 2024	158,812
	---------

Company	Deferred tax (note 25)
	£
At 1 January 2024	( 201,117)
Additions	18,527
	---------
At 31 December 2024	( 182,590)
	---------

25. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Included in provisions (note 24)	158,812	( 167,924)	( 182,590)	( 201,117)
	---------	---------	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Accelerated capital allowances	634,974	67,083	24,417	67,083
Fair value adjustment of financial assets	(207,007)	(235,007)	(207,007)	(235,007)
Unused tax losses	( 269,155)	–	–	–
	---------	---------	---------	---------
	158,812	(167,924)	(182,590)	(167,924)
	---------	---------	---------	---------

Deferred tax has been calculated at 25% (2023: 25%) on the basis that this is the rate of corporation tax for the foreseeable future.

26. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 82,709 (2023: £ 147,888 ).

27. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 1 each	100	100	100	100
	----	----	----	----

28. Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.

29. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	2,574,075	(2,120,241)	453,834
Debt due within one year	(19,626,489)	13,525,395	(6,101,094)
Debt due after one year	(11,705)	(15,514,824)	(15,526,529)
Current asset investments	7,206,542	564,207	7,770,749
	-------------	-------------	-------------
	( 9,857,577)	( 3,545,463)	( 13,403,040)
	-------------	-------------	-------------

30. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Not later than 1 year	184,573	–	3,433	–
Later than 1 year and not later than 5 years	678,309	–	6,865	–
Later than 5 years	1,996,000	–	–	–
	------------	----	--------	----
	2,858,882	–	10,298	–
	------------	----	--------	----

31. Directors' advances, credits and guarantees

During the year the group operated a loan account with the directors. At the year end the directors owed £72,889 to the company (2023: £52,319). No interest is charged and the balance is repayable on demand.

32. Related party transactions

Group

The group has taken advantage of the exemptions available under FRS102 relating to the disclosure of related party transactions with other members of the Ashley Hotels (Holdings) Limited group. Other Related Party Transactions Included in note 19 - debtors, are amounts due from associated undertakings. This balance is unsecured, interest free and no fixed repayment terms. The key management are deemed to be the same as the directors, the remuneration is disclosed in note 9.