Page 1 - HPH News June 2017

A Note from Ken Arkley, Commercial Director

Dear All

I am delighted to write this introduction to Hand Picked News with a warm welcome to
Stanbrook Abbey, the stunning new addition to our Collection that makes our group 20
hotels. We are delighted to welcome the new team members to our family and grateful for
the hard work they are putting in to learn our brand standards and look after the Hand

Picked guests who are so keen to visit and experience the hotel. I would also like to
recognise the efforts of the team members from Sevenoaks and other hotels who have been
supporting them and who will continue this work over the coming months.

With the UK progressing towards Brexit, the UK economy remains uncertain and this
impacts our business. Quarter Two was a very mixed set of trading results with March
starting poorly across the group. April showed signs of improvement, although still difficult,
and May was a much improved month where all of the key business segments showed some
strength and the group exceeded its budget in the period. The recurring issue we continue
to face is the continued cost pressure in areas such as food, beverages and general expenses
which makes it difficult to convert revenue into the profit levels we want. This cost pressure
is expected to continue during this year and on into 2018. From the centre, we are working
on initiatives to drive business into the hotels and improve our average room rate. In the
hotels, the teams need to find ways to accelerate their revenue growth to compensate for

the increased costs we face and so protect our profit. The importance of Rise to the
Challenge and Shine has never been as critical as it is now. Each and every person can make
sure that we take the best care of our guests and make the most of every sales
opportunity. Quarter Three is the busiest time of the year for us so the coming months
provide a tremendous opportunity to boost revenue whilst looking after our guests to make
sure they become loyal advocates of our brand.

Let me end by thanking you for the hard work and support you give to ensure that our
guests receive the Hand Picked experience of which we are so proud.

Best Wishes,

Ken