GRAYSHOTT_HOTEL_PROPERTY_ - Accounts

The directors of the company have 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.

Grayshott Hotel Property Limited is a private company limited by shares incorporated in England and Wales. The registered office is Quadrant House, Floor 6, 4 Thomas More Square, London, United Kingdom, E1W 1YW.

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 the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.

The Covid-19 pandemic had a severe impact on the group’s operations, resulting in a significant downturn in revenues and cash flows during 2020. For much of that year the hotel was unable to open as a result of periods of national lockdown in the UK. At that time the group’s management took a number of actions to reduce costs and defer payments, taking advantage of government support and payment deferral schemes as appropriate. In November 2020 the group’s directors decided to close the hotel for the foreseeable future to curtail costs for the group whilst undertaking a strategic review of options, including a potential sale of the hotel or the potential redevelopment of the site. The group does not have any external debt or committed costs which it will need to cover in the case of not reopening.true

The company had net current liabilities and net liabilities at 31 December 2020, this position is primarily due to the amounts payable to the ultimate shareholders. The directors have received confirmation from the ultimate shareholders that they do not intend to call for repayment of this debt for at least twelve months from the date of signing these financial statements and that their current intention is to continue to support the group and company.

The ability of the group to continue in operation by selling the hotel or redeveloping the site is uncertain. Notwithstanding the uncertainty, the directors have continued to adopt the going concern basis in these financial statements.

Turnover represents rent receivable net of VAT. When rent receivable has not been invoiced, it is recognised as accrued income at the period end.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

The company owns a property which is rented to the parent company. The directors have chosen to recognise the investment property as tangible fixed assets and applied the cost model, in line with the guidance issued in the Triennial Review 2017.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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, 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, 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.

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

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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

The average monthly number of persons employed by the company during the year was 0 (2019 - 0).

At the year end the company owed loan balances of £4,633,058 (2019: £4,515,651) to GHL Beteiligung und Verwaltung GmbH, Austria and companies under their control and £4,633,058 (2019: £4,515,651) to London & Regional Group Hotel Holdings Limited. These entities are the joint venture partners of the parent company. Interest accumulated on each respective loan of £117,407 (2019: £114,432) in the year.

The company is owned and controlled by Grayshott Hotel Limited, which owns 100% of the issued share capital. Grayshott Hotel Property Limited is included within Grayshott Hotel Limited's consolidated financial statements.

Grayshott Hotel Limited is the smallest group for which consolidated financial statements are drawn up, and of which the company is a member. Grayshott Hotel Limited has a registered office of Quadrant House, Floor 6, 4 Thomas More Square, London, E1W 1YW. The consolidated financial statements of Grayshott Hotel Limited are audited.

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 was unqualified.