REGISTERED NUMBER: 04554566 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2024

for

Hope Street Hotel Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

D C Brewitt

Ms A L de Joia

REGISTERED OFFICE:

Seymour Chambers

92 London Road

Liverpool

Merseyside

L3 5NW

REGISTERED NUMBER:

04554566 (England and Wales)

AUDITORS:

Douglas Fairless Partnership

Chartered Certified Accountants

and Statutory Auditors

Seymour Chambers

92 London Road

Liverpool

Merseyside

L3 5NW

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

Hope Street Hotel Ltd Group is made up of Hope Street Hotel Ltd and its 100% owned subsidiaries L1 Hotels Ltd and David Brewitt Ltd. Hope Street Hotel Ltd trades as Hope Street Hotel, Hope Street Hotel spa, The London Carriage Works restaurant and 1931 restaurant. L1 Hotels Ltd trades as School Lane Hotel. David Brewitt Ltd owns two different parts of the building from which the main trade of the Hope Street Hotel Ltd group operates.

REVIEW OF BUSINESS

Hope Street Hotel Ltd has undergone a significant expansion project over the past few years, with the introduction of 62 new rooms, a luxury spa, additional conferencing facilities and a new restaurant called 1931.The results in the 31 December 2024 financial statements show that the business continues to feel the benefit of the investment over the past few years. 2024 has seen group turnover, after adjusting for inter-group transactions, increase to £12,365,839 from £11,536,007 in 2023, which is a 7.19% year on year increase. The core Hope Street Hotel turnover has increased by 2.8% to £11,254,416 (2023 - £10,949,272). School Lane Hotel (L1Hotels Ltd), following its first full year of trade, has delivered a 90% increase in turnover (2024 - £1,117,490, 2023 - £529,286).

Group gross profits have remained at a similar level with comparative periods, coming in at 86% in 2024 (86% in 2023). This is indicative of high quality management, with robust controls and proactive management of business risks in a challenging, competitive travel & tourism environment in the city. Due to maintaining our gross margins & improving our economies of scale position, the business has maintained a net profit margin before depreciation of 22.63% (2023 - 25.37%), the slight dip in net profit margin was expected due to increased wages in line with the national living wage increase during the year. Our average room rate has stayed consistent at £135.05 (2023 - £134.40), which is indicative of the current competitive market place.

The investment in School Lane Hotel, the total of investment has increased to just over £3 million, this loan was funded from cashflow, without the requirement of any outside finance. Repayments for this have now started.

The continued success of the hotel has allowed the company to purchase David Brewitt Ltd, to consolidate the trading site of the group into one entity, giving Hope Street Hotel Ltd clear operational and financial control.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the group will be ensuring continued compliance with bank loan covenants, which are currently being comfortably met. The current inflationary pressures being felt across the UK in general will result in an impact on our future net profit margins. Increases in the national living wage and national insurance costs increases in 2025 will impact on our net profit margins , but we will remain a consistently profitable business. Management will ensure that measures are in place to offset these increased costs where possible. Consequently, we expect our cash position to continue to strengthen which will lead to further expansion and/or a reduction in borrowing.

ON BEHALF OF THE BOARD:

D C Brewitt - Director

25 September 2025

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

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of Hoteliers, restaurant and spa and commercial property rental.

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.

D C Brewitt

Ms A L de Joia

Other changes in directors holding office are as follows:

Dr A R Harvey - resigned 11 November 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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). 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 the group and of 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 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Douglas Fairless Partnership, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D C Brewitt - Director

25 September 2025

Opinion

We have audited the financial statements of Hope Street Hotel Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company 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; 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 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 and 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 directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors 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 Group 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 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 Statement of Directors' Responsibilities set out on page three, 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 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.

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:

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, 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.

In identifying and assessing risks of material misstatement in the financial statements in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, the control environment and the impact of business performance on Directors earnings.

- results of our enquiries of management and key finance persons about their own identification and assessment of the risks and irregularities.

- any matters we identified after obtaining and reviewing company policies and procedures relating to; identifying, evaluating and complying with laws and regulations. Detecting and responding to risks of fraud. The internal controls in place to mitigate the risks of fraud or non-compliance with laws and regulations.

From this assessment, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis of our opinion. Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance, reviewing correspondence with HMRC; and

- in addressing the risk of fraud through management override of controls; we have tested the operational effectiveness of internal controls relevant to the financial statements, tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.

Mr Gregory Newton FCCA (Senior Statutory Auditor)

for and on behalf of Douglas Fairless Partnership

Chartered Certified Accountants

and Statutory Auditors

Seymour Chambers

92 London Road

Liverpool

Merseyside

L3 5NW

25 September 2025

TURNOVER

3

12,365,839

11,536,007

Cost of sales

1,683,995

1,532,568

GROSS PROFIT

10,681,844

10,003,439

Administrative expenses

8,286,977

7,229,156

2,394,867

2,774,283

Other operating income

531,029

-

OPERATING PROFIT

6

2,925,896

2,774,283

Interest receivable and similar income

73,526

14,015

2,999,422

2,788,298

Interest payable and similar expenses

7

373,837

398,288

PROFIT BEFORE TAXATION

2,625,585

2,390,010

Tax on profit

8

679,644

381,092

PROFIT FOR THE FINANCIAL YEAR

1,945,941

2,008,918

Profit attributable to:

Owners of the parent

1,945,941

2,008,918

PROFIT FOR THE YEAR

1,945,941

2,008,918

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,945,941

2,008,918

Total comprehensive income attributable to:

Owners of the parent

1,945,941

2,008,918

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

22,434,576

22,216,773

Investments

12

Interest in associate

33

33

Other investments

500

500

Investment property

13

5,289,043

-

27,724,152

22,217,306

CURRENT ASSETS

Stocks

14

128,565

117,872

Debtors

15

2,178,270

599,510

Cash at bank and in hand

2,672,144

1,594,128

4,978,979

2,311,510

CREDITORS

Amounts falling due within one year

16

7,590,948

4,667,488

NET CURRENT LIABILITIES

(2,611,969

)

(2,355,978

)

TOTAL ASSETS LESS CURRENT LIABILITIES

25,112,183

19,861,328

CREDITORS

Amounts falling due after more than one year

17

(7,945,718

)

(5,125,000

)

PROVISIONS FOR LIABILITIES

21

(1,411,133

)

(1,000,963

)

NET ASSETS

15,755,332

13,735,365

CAPITAL AND RESERVES

Called up share capital

22

84

88

Share premium

23

73,237

73,237

Capital redemption reserve

23

12

12

Retained earnings

23

15,681,999

13,662,028

SHAREHOLDERS' FUNDS

15,755,332

13,735,365

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

D C Brewitt - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

19,313,776

18,967,343

Investments

12

5,529,033

1,533

Investment property

13

-

-

24,842,809

18,968,876

CURRENT ASSETS

Stocks

14

125,133

113,192

Debtors

15

3,848,827

3,056,040

Cash at bank and in hand

1,881,504

1,383,179

5,855,464

4,552,411

CREDITORS

Amounts falling due within one year

16

6,157,536

3,482,306

NET CURRENT (LIABILITIES)/ASSETS

(302,072

)

1,070,105

TOTAL ASSETS LESS CURRENT LIABILITIES

24,540,737

20,038,981

CREDITORS

Amounts falling due after more than one year

17

(7,921,511

)

(5,125,000

)

PROVISIONS FOR LIABILITIES

21

(893,630

)

(922,565

)

NET ASSETS

15,725,596

13,991,416

CAPITAL AND RESERVES

Called up share capital

22

84

88

Share premium

23

73,237

73,237

Capital redemption reserve

23

12

12

Retained earnings

23

15,652,263

13,918,079

SHAREHOLDERS' FUNDS

15,725,596

13,991,416

Company's profit for the financial year

1,734,184

2,221,140

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

D C Brewitt - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

88

11,653,110

73,237

12

11,726,447

Changes in equity

Total comprehensive income

-

2,008,918

-

-

2,008,918

Balance at 31 December 2023

88

13,662,028

73,237

12

13,735,365

Changes in equity

Issue of share capital

(4

)

-

-

-

(4

)

Total comprehensive income

-

1,945,941

-

-

1,945,941

Balance at 31 December 2024

84

15,607,969

73,237

12

15,681,302

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

88

11,696,939

73,237

12

11,770,276

Changes in equity

Total comprehensive income

-

2,221,140

-

-

2,221,140

Balance at 31 December 2023

88

13,918,079

73,237

12

13,991,416

Changes in equity

Issue of share capital

(4

)

-

-

-

(4

)

Total comprehensive income

-

1,734,184

-

-

1,734,184

Balance at 31 December 2024

84

15,652,263

73,237

12

15,725,596

Cash flows from operating activities

Cash generated from operations

1

2,296,410

3,222,652

Interest paid

(373,837

)

(398,288

)

Tax paid

(374,056

)

(651,864

)

Net cash from operating activities

1,548,517

2,172,500

Cash flows from investing activities

Purchase of tangible fixed assets

(644,071

)

(3,290,037

)

Purchase of investment property

(2,677

)

-

Sale of tangible fixed assets

-

(1

)

Interest received

73,526

14,015

Net cash from investing activities

(573,222

)

(3,276,023

)

Cash flows from financing activities

Loan repayments in year

(1,474,968

)

(1,023,253

)

Amount introduced by directors

1,058,223

16,000

Amount withdrawn by directors

519,470

(600,753

)

Share issue

(4

)

-

Net cash from financing activities

102,721

(1,608,006

)

Increase/(decrease) in cash and cash equivalents

1,078,016

(2,711,529

)

Cash and cash equivalents at beginning of year

2

1,594,128

4,305,657

Cash and cash equivalents at end of year

2

2,672,144

1,594,128

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Profit before taxation

2,625,585

2,390,010

Depreciation charges

441,324

367,706

Loss on disposal of fixed assets

297,903

6,340

Reversal of other provisions

(105,000

)

-

Finance costs

373,837

398,288

Finance income

(73,526

)

(14,015

)

3,560,123

3,148,329

Increase in stocks

(10,693

)

(40,878

)

(Increase)/decrease in trade and other debtors

(1,581,870

)

250,271

Increase/(decrease) in trade and other creditors

328,850

(135,070

)

Cash generated from operations

2,296,410

3,222,652

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

2,672,144

1,594,128

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,594,128

4,305,657

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

1,594,128

1,078,016

2,672,144

1,594,128

1,078,016

2,672,144

Debt

Debts falling due within 1 year

(500,000

)

(27,282

)

(527,282

)

Debts falling due after 1 year

(5,125,000

)

1,434,467

(3,690,533

)

(5,625,000

)

1,407,185

(4,217,815

)

Total

(4,030,872

)

2,485,201

(1,545,671

)

1.	STATUTORY INFORMATION

Hope Street Hotel Ltd 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 General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Basis of consolidation

The consolidated financial statements incorporate those of Hope Street Hotel Ltd and all of it's subsidiaries, all group companies are 100% subsidiaries of Hope Street Hotel Ltd.

All financial statements of the group companies are made up to 31st December 2024 and all intra-group transactions between group companies have been eliminated on consolidation.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

The directors have made judgements regarding the depreciation of fixed assets.

Turnover

The turnover in the profit & loss account represents net invoice value of goods or services provided on cash or credit basis, excluding value added tax.

Revenue is recognised upon delivery of a service and/or check in of the customer.

Rental income is recognised based on accrued rental contract periods.

Intangible assets

Development costs shown as Intangible assets are initially measured at cost. After initial recognition, Development costs are measured at cost less accumulated amortisation charges and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful live of five years.