Registered number: 11694157
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their Strategic Report together with the audited financial statements for the year ended 31 December 2025.
The principal activity of the Company is investment in interest bearing activities and that of a holding company.
The turnover for the year was £2,219,026 (2024 - £2,805,923). The Company has suffered a loss for the year of £2,672,766 (2024 - £1,537,576). As of 31 December 2025, the Company had net liabilities of £8,727,042 (2024 - £6,054,276).
Turnover relates to a variable interest on Group internal loan and is as expected.
The loss increased from 2024 to 2025 which was mainly due to interest rate variances.
The Directors expect a significant improvement in the financial performance during 2026.
The loss increased from 2024 to 2025 which was mainly due to interest rate variances.
The Directors expect a significant improvement in the financial performance during 2026.
The Company has investment in interest bearing activities, which can be affected by world external events including conflicts, recession and restrictions and market effects caused by epidemics on a global scale. As described under financial risk management, the Company's principal risks and uncertainties are assessed and evaluated on an ongoing basis by the central treasury function.
The Company monitors on an ongoing basis all activities and results.
Proark UK Hotels Debt Ltd's financial risk management is governed by a finance policy approved by the ultimate parent company, Proark Properties ApS. According to the finance policy, the corporate treasury function of the ultimate parent company systematically monitors and evaluates the financial risks, such as foreign exchange, interest rate, credit and liquidity risks. Further, the corporate treasury function has an ongoing evaluation and negotiation regarding financing.
Credit risk
The Company has limited exposure to credit risk, as activities are currently limited to group companies and risks are handled by the ultimate parent company.
Foreign exchange risk exposure
The Company only has activities in GBP and therefore has no foreign exchange risk exposure.
Interest rate risk
The Company holds only third-party loans with fixed interest, and therefore has no interest rate exposure.
Credit risk
The Company has limited exposure to credit risk, as activities are currently limited to group companies and risks are handled by the ultimate parent company.
Foreign exchange risk exposure
The Company only has activities in GBP and therefore has no foreign exchange risk exposure.
Interest rate risk
The Company holds only third-party loans with fixed interest, and therefore has no interest rate exposure.
Liquidity risk
Cash not necessary for the normal course of business is deposited in a bank. The central treasury function at the ultimate parent company is responsible to coordinate the handling of surplus liquidity and liquidity.
Financing risk
After the reporting date The Company's loan has been refinanced by a new loan provider. The new loan has a maturity of at least five years.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
This report was approved by the board on 24 September 2026 and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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.
The loss for the year, after taxation, amounted to £2,672,766 (2024 - loss £1,537,576).
The Directors have not recommended the payment of a dividend (2024 - £Nil).
The directors who served during the year were:
The Directors consider the prospects of the Company to be good.
The hotels operated by the subsidiary changed the management agreement with the operator which was flipped to a franchise agreement with a new operator, who took over the management of all the hotels in the beginning of January 2025. It is the Directors' expectation that for hotels operated by the subsidiary 2026 will show a stronger performance on all operational levels, which is based on the franchise agreement and the new operators' approach and experience.
The turmoil in the world market continues to constitute uncertainty, which to some extent could affect the operation negatively in 2026.
The hotels operated by the subsidiary changed the management agreement with the operator which was flipped to a franchise agreement with a new operator, who took over the management of all the hotels in the beginning of January 2025. It is the Directors' expectation that for hotels operated by the subsidiary 2026 will show a stronger performance on all operational levels, which is based on the franchise agreement and the new operators' approach and experience.
The turmoil in the world market continues to constitute uncertainty, which to some extent could affect the operation negatively in 2026.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
During the year, the Company's loan has been refinanced by a new loan provider. The new loan has a maturity of at least five years. In addition, the parent company has confirmed its continued support, should such support be required.
Based on the above, it is the opinion of the Directors that the Company can adopt the going concern basis in preparing these financial statements.
Based on the above, it is the opinion of the Directors that the Company can adopt the going concern basis in preparing these financial statements.
The Company held qualifying professional indemnity insurance during the year for the benefit of one or more directors in a form and scope detailed within the Companies Act 2006.
Disclosures required under S416(4) of the Companies Act 2006 are commented upon in the Strategic Report in accordance with S414C(11) as the Directors consider them to be of strategic importance to the Company.
There have been no significant events affecting the Company since the year end.
The auditor, Menzies LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 24 September 2026 and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PROARK UK HOTELS DEBT LTD
We have audited the financial statements of Proark UK Hotels Debt Ltd (the 'Company') for the year ended 31 December 2025, which comprise the Statement of income and retained earnings, the Statement of financial position 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PROARK UK HOTELS DEBT LTD (CONTINUED)
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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PROARK UK HOTELS DEBT LTD (CONTINUED)
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:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, and general regulations such as health and safety, licensing regulations, food hygiene regulations and occupational health and employment legislation. We assessed the extent of compliance with the appropriate laws and
regulations as part of our procedures on the related financial statement items.
regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures.
∙The engagement director assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud.
°Understanding how those charged with governance considered and addressed the potential for override of controls
or other inappropriate influence over the financial reporting process;
or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgments made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PROARK UK HOTELS DEBT LTD (CONTINUED)
for and on behalf of
Chartered Accountants
Statutory Auditor
One Express
1 George Leigh Street
Ancoats
M4 5DL
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2025
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 September 2026 .
The notes on pages 11 to 20 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Proark UK Hotels Debt Ltd is a private company, limited by shares, incorporated in England and Wales under the Companies Act 2006. The address of the registered office is given on the Company Information page. The nature of the Company's operations and its principal activities are set out in the Strategic Report.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The financial statements are prepared in Sterling (£) and rounded to the nearest £1.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Proark Properties ApS as at 31 December 2025 and these financial statements may be obtained from Hammershusgade 9, 2100
København Ø, Denmark..
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of a state other than the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006.
The financial statements have been prepared on the going concern basis. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and accordingly consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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 and charged to the Statement of Comprehensive Income within administrative expenses as follows:
Capitalised loan costs - 4 years and 1 month straight line
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of financial position 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.
Impairment of financial assets
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Company's accounting policies
There were no critical judgements, apart from those involving estimations (which are dealt with separately below), that the Directors have made in the process of applying the Company's accounting policies and that have had a significant effect on the amounts recognized in the financial statements.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.
The whole of the turnover is attributable to the principal activity of the Company.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
9.Taxation (continued)
There are considered to be no factors that may affect future tax charges. The Company has a deferred tax asset at the year end at the amount of £2,972,823 (2024 - £2,304,631) which it has chosen not to account for.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Share premium account
Profit and loss account
The Company's immediate parent company is Proark UK Hotels Holding ApS, a company incorporated in Denmark.
The Company's ultimate parent company is Proark Properties ApS, a company incorporated in Denmark. Proark Properties ApS is the parent of the smallest and largest group for which consolidated financial statements are prepared that include the results of the Company. The consolidated accounts of the Group are available to the public and may be obtained from the registered office of Proark Properties ApS at Hammershusgade 9, 2100 København Ø, Denmark.
The ultimate controlling party is M K Andersen by virtue of his majority shareholding.
The Company's ultimate parent company is Proark Properties ApS, a company incorporated in Denmark. Proark Properties ApS is the parent of the smallest and largest group for which consolidated financial statements are prepared that include the results of the Company. The consolidated accounts of the Group are available to the public and may be obtained from the registered office of Proark Properties ApS at Hammershusgade 9, 2100 København Ø, Denmark.
The ultimate controlling party is M K Andersen by virtue of his majority shareholding.
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