The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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

Consolidated Hotels Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 114a Cromwell Road, Kensington, London, SW7 4AG.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

During the year the company incurred a loss of £54,546,401 (2023: £2,661,136) of which £57,852,766 related to impairment and provisions relating to amounts owed by group undertakings which are not to be recurrent.

At the reporting date, the company had cash reserves of £1,002,096 (2023: £1,002,051), net current liabilities of £6,988,561 (2023: net current assets £37,168,312) and net liabilities of £3,496,896 (2023: net assets £51,049,503).

The company continues to meet its working capital requirements through the ongoing financial support of its shareholder and fellow group undertakings. However, prevailing economic conditions introduce a degree of uncertainty regarding the continued availability of such support.

At the reporting date, the Company owed £1,222,287 to Consolidated Property Corporation Inc Limited, a company registered in England and Wales in which Mr L Kirschel is also a director and shareholder. This balance is repayable on demand and therefore presents a material uncertainty regarding the Company’s ability to continue as a going concern. However, the Company has obtained a letter of support from this related party confirming its commitment to provide financial assistance for at least 12 months from the date of approval of these financial statements. Furthermore, the related party has confirmed that it will not seek repayment of the loan until the Company is in a position to do so.

In addition, the Company owed £2,366,412 to its ultimate parent undertaking, which is also repayable on demand. The Company has obtained a letter of support from the parent confirming its commitment to provide financial assistance and ensure the Company can meet its obligations for at least 12 months from the date of approval of these financial statements. Furthermore, the parent has confirmed that it will not seek repayment of the loan until the Company is in a position to do so.

In addition, the director is actively looking to generate additional operating cash from the sale of assets within other areas of the group. The director is confident that future asset realisations will allow the company to trade.

Having considered these factors, the director has a reasonable expectation that the Company possesses adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these financial statements. Accordingly, the financial statements have been prepared on a going concern basis.

Turnover consists of rents receivable, exclusive of value added tax.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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

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

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

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

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

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

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

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

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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

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

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.

Deferred tax assets are recognised only to the extent that the director considers that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. At the start of the lease, the company reviews all necessary terms and criteria to determine the appropriate lease classification.

Assets held under finance leases are recognised as right of use assets and a corresponding lease liability is recognised at commencement of the lease. The lease liability is measured at the present value of the lease payments, discounted at the rate implicit in the lease, or if that cannot be readily determined, at the lessee’s incremental borrowing rate specific to the term, country, currency and start date of the lease.

The lease liability is subsequently measured at amortised cost using the effective interest rate method. It is remeasured, with a corresponding adjustment to the right of use asset, when there is a change in future lease payments resulting from a rent review, change in an index or rate such as inflation, or change in the company's assessment of whether it is reasonably certain to exercise a purchase, extension or break option.

The right of use asset is initially measured at cost, comprising: the initial lease liability; any lease payments already made less any lease incentives received. The right of use asset is subsequently depreciated on a straight-line basis over the shorter of the lease term or the useful life of the underlying asset, and tested for impairment.

If the right of use asset meets the definition of investment property, then the company measures the right of use asset in accordance with the accounting policy set out in note 1.4.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed. The amount of the difference between rental expense recognised and cash paid is included in trade creditors, accruals or other liabilities, or in the event it is an asset, prepayments and other debtors.

Sale and leaseback transactions

Where the company sells an asset and immediately reacquires use of it by entering into a lease with the buyer, a lease liability is recognised, the associated asset is derecognised, and a right of use asset is recognised at the proportion of the carrying value relating to the right retained. Any gain or loss arising relates to the rights transferred to the buyer

The company disposed of its investment property immediately leased it back. At the start of the lease, the company reviewed all necessary terms and criteria to determine the appropriate lease classification. The lease met specific classification criteria where the lease of the freehold interest will be treated as a finance lease and the lease of the land interest will be treated as an operating lease. The freehold interest is recognised on the balance sheet as investment property and a finance lease liability has been recognised. The treatment of finance leases as a lessee is set out above.

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

During the year, the company disposed of an investment property as part of a sale and leaseback arrangement. As part of this arrangement the company has entered into a 70 year lease which is considered to be a finance lease. This lease has been accounted for as an investment property. The fair value has been arrived at by the director.

The finance lease liability is secured on the investment property. In accordance with the lease agreement, the lessor holds a security interest over the leased investment property. In the event of default, the lessor may enforce its rights against the property as stipulated in the lease terms.

The bank loan is secured by a first legal charge over the assets of the company. The finance lease liability is secured on the investment property. In accordance with the lease agreement, the lessor holds a security interest over the leased investment property. In the event of default, the lessor may enforce its rights against the property as stipulated in the lease terms.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The operating lease represent leases the ground rents payable on a sale and leaseback transaction. The lease is over of 70 years and represents a proportion of the annual rent.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

The company's immediate parent undertaking is Consolidated Hotels Holdings Limited. The company's ultimate parent undertaking is Consolidated Holdings Limited. All companies are registered in England and Wales.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following: