Nicholas Menzies began his career in the hotel trade as a cleaner. But he quickly worked his way up as barman and deputy manager. At 33, he was able to buy his first hotel with £125,000 of savings. This was the start of a Derbyshire-based chain, Menzies Hotels, which now consists of 20 three- and four-star hotels, mainly in the Midlands and the south of England. Menzies attributes his success to an ability to identify underperforming assets or hotels with potential which can be bought cheaply and then upgraded and managed more efficiently. Acquisitions have been financed partly with venture capital. Profits for the chain increased by 103% pa, from £700,000 in 1996 to £5.8m in 1999. Most of this derives from a sales increase of 93% pa in the same period to £23.2m. Profits were also boosted by the purchase of a sophisticated database that allows management to track room occupancy and price rooms in direct response to demand, thus increasing both occupancy and profitability.
This profile reflects the company at time of publication and does not reflect any changes that may have subsequently occurred. Fast Track and its sponsors do not endorse, guarantee or recommend investment in any of the companies.