Organisation of the Week

Hospitality Industry Trust (HIT) Scotland

HIT Scotland awarded 159 scholarships at their annual Emerging Talent Conference last week, with placements ranging from the Disney Institute in Florida to Michelin starred kitchens and Cornell University. The charity has now awarded 850 scholarships to people working in the Scottish hospitality industry. Investing £100,000 into this year's programme HIT Scotland aim to return £1 million back into industry. David Cochrane, chief executive, said "Over the past month we have conducted over 100 hours of interviews to find this year’s scholars. They are not awarded lightly and the recipients have all shown they have potential to be a leader for the industry. Without leadership or raised aspirations to drive innovation and attract the best to the workforce, the domestic hospitality industry is in danger of becoming uncompetitive in an international market."

Quote of the Week

"If imitation is the sincerest form of flattery I certainly feel sincerely flattered. However, the serious point is this: as his answer to questions revealed, there is a big difference between photocopying and understanding. I think he can recover from his performance today. After all, my friend Joe Biden deservedly became Vice-President of the United States."

Peter Mandelson comments on George Osborne speech last week

*Biden famously ripped off Kinnock's 'thousand generations' speech on his family not having gone to university.

Facts of the week

Kew Green Hotels highest ranking hospitality company in Buyout Track 100

What other hospitality companies featured in this year’s list?

• The Buyout Track 100 ranks businesses with at least 20% private equity backing, with the fastest growing profits under £50 million (profits are measured as earnings before interest, tax, depreciation and amortisation).
• 117 private equity backed buyouts were completed in 2009, the lowest figure for 25 years; LDC, part of Lloyds Banking Group, has more portfolio companies in this year's list than any other investor.
• Merlin Entertainments Group, which topped last year's list, is predicted to be planning a stockmarket flotation and it tops the list of 10 biggest buyouts with fastest growing profits.
• The following hospitality businesses featured in this year's list:
  • Kew Green Hotels (7)
  • Q Hotels (53)
  • Coffee Nation (73)
  • Venues (90)
  • Yo! Sushi (100)

Source: fasttrack.co.uk

Terra Firma vehicle faces challenges to avoid breaching covenants

Maltby Capital, the company used to acquire EMI Group, reports that problems in meeting the music giant's debt burden may impact its ability to continue to trading as a going concern

• Having injected £105 million of cash last year, Guy Hands Terra Firma faces further testing of quarterly banking covenants– and without an equity injection (of around £100 million) they are unlikely to be met.
• This means that Maltby risks losing the company to lender CitiGroup, which Terra Firma is also suing.
• However, shareholders have reportedly agreed to provide further funding subject to the provision of a revised business plan, although this has not yet been signed off.
• Interestingly, EMI recorded a profit from operations of £143 million in year ended March 2009, excluding an impairment charge of £1.03 billion and restructuring costs of £126 million.
• So, it is the onerous debt obligations which are cause for concern, which analysts point out are a risk not only this year, but into 2011.

Source: ft.com

Hotel Yearbook 2010

The Hotel Yearbook 2010 is a forum where the world's leading industry experts gather to analyse the year and share their thoughts. This year's features include:

• Isadore Sharp, Tom Storey and 7 other CEOs on changes in luxury in 2010.
• Arthur de Haast on the outlook for global transactions.
• Chip Conley on California - America's basket case?
• Sir David Michels on how the recovery will unfold, phase by phase.
• Michael O'Hare on developments in Russia.
• Sonu Shivdasani and Lyndall De Marco on sustainability.
• Frank Wolfe on technology trends.

Go here to download your copy of The Hotel Yearbook 2010:
http://www.hotel-yearbook.com/

Article of the week

EP Condense is EP's weekly e-newsletter. But did you know that EP is also a bimonthly magazine available via subscription? Our Article of the Week provides a sample of what we have featured in past issue.

This week we feature a story from the EP archives. It is a business feature entitled "Living the moment". Living Ventures has been one of the UK's most innovative restaurant and bar operators in the past decade. En Passant talks to Tim Bacon, Managing Director about his experiences.