Success Story - Hotel Client Restructures Finances

Success Story

A regional hotel client had hit tough times.  From initial discussions it was clear the client needed a better understanding of actual business performance across their group.

The client was in the process of refinancing, and the inaccurate valuation was making it difficult to secure a new loan, which was very stressful.

PJT immediately reviewed the financial statements from the previous accountant, finding discrepancies in asset reporting and cashflow, both of which resulted in an inaccurate bank valuation.  In partnership with the client, PJT developed a new financial plan to take to their bank, giving their Bank Manager a much better understanding of their current and future financial commitments. 

PJT also addressed an outstanding Tax Office debt, establishing a payment plan which saved the client nearly $40,000 in interest.  The payment plan allowed the client to pay off the tax debt 4 months ahead of schedule, and commit short term funds towards refurbishing their venue, making it possible to increase room rates and in turn grow their profits.

As part of its review, PJT developed a better internal reporting process, giving the client better information on their business profitability, and advice on how they can buy and sell more productively through their organisation.  

A renewed energy developed, allowing the client to better focus on its target business and work with PJT to identify growth plans for the future.

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About the author

As Partner and Director at PJT Accountants & Business Advisors, Wayne runs the Hotels Division which specialises in providing advisory services, accounting and cashflow management to the Hotels Industry. Having been a hotelier for many years himself, Wayne and his team of specialists are acutely aware of the needs of this industry and can offer real world advice to quickly improve business performance.