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LEISURE | Lodging
sleeperz.com

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Stage

Debt | Alive

Total Raised

$8.65M

Last Raised

$6.83M | 11 yrs ago

About Sleeperz Hotels

Operator of stylish budget hotels for both business and leisure travelers. The company's compact lifestyle hotels are located in close proximity to mainline railway stations on land belonging to Network Rail in the United Kingdom. It is utilizing smaller stylish rooms on irregularly shaped sites next to mainline railway terminals and offering an affordable city center living experience within a hotel environment.

Sleeperz Hotels Headquarter Location

East Lodge, Euston Square Gardens 188 Euston Road, Euston Station

London, NW1 2EF,

United Kingdom

44 20 7388 3636

Latest Sleeperz Hotels News

The budget 2021: what does it mean for Scottish hospitality? Industry figures speak out about ‘hardest hit’ industry

Mar 3, 2021

© Shutterstock / BreizhAtao Hospitality will benefit from alcohol duty being frozen, 5% VAT for the next six months, an extension of furlough and additional grant schemes following today’s budget. The UK Government’s Chancellor Rishi Sunak has announced that a £5 billion grant scheme will be available to hospitality firms across the UK, with businesses being able to access payments up to £18,000. The “restart” grants will be available on a per premises basis and will be allocated based on the value of the property. Those properties with a rateable value of £15,000 or under will receive £8,000, those valued between £15,000 and £51,000 will be entitled to £12,000, and those valued above £51,000 plus will get £18,000. While the main £5bn is aimed at England, Scotland, Wales and Northern Ireland will receive £794 million in funding through the Barnett formula. This is on top of the £20bn already paid out. Rishi Sunak. The reduction of hospitality VAT was addressed, ensuring VAT which would usually be charged at 20%, stays at the reduced rate of 5% for an additional six months until September 30. This move will further help assist Scottish hospitality businesses through coronavirus pandemic over the coming months. Interim rate An interim rate at 12.5% will be introduced after September 30 and will run for another six months until April 2022 when the standard rate of 20% will return. This will cut VAT by £5bn in 2021. The VAT only affects those offering hot food takeaway at present, until businesses begin to reopen. VAT on cold food is zero-rated. With First Minister Nicola Sturgeon announcing last month that hospitality was unlikely to reopen before April 26 in Scotland, this will be welcome news for businesses who were worried and left facing financial turmoil. The chancellor also announced in his address to Parliament that alcohol duty on beer, cider, spirits and wine will be frozen for the second year in a row to help boost pub and restaurant sales when these venues finally reopen. He also confirmed an extension to the furlough scheme until the end of September. No changes will be made to the scheme until businesses reopen. In July a small contribution of 10% will be necessary from employers and 20% in August and September. It is not certain whether this will affect hospitality Scottish businesses due to the sector not having firm reopening dates. Welcome news Manny Baber , general manager of Sleeperz Hotels Dundee and chairman of the Dundee & Angus Visitor Accommodation Association, said while the reduction on VAT continuing announced in the budget is good news, more needs to be done to help a business battered during the global pandemic. Manny Baber. He said: “News of an extension to VAT cuts for hospitality businesses is welcome but I’d like to see the Chancellor go further and extend it for another year. “Hospitality has been hit especially hard by this pandemic and hotel operators need continued support to rebuild effectively. “Business rates holidays and VAT at 5% for another year is essential if we are to return to profitability and begin to pay down the sizeable loans taken out while accommodations have been closed. “Nor is it fair to pass price hikes onto the British public, desperate for staycations and social reunions this summer but that is surely unavoidable if government returns VAT to its previous rate of 20%. “The extension of the furlough scheme until the end of September is also a vital support mechanism and fundamental to protecting jobs in hospitality, an industry which contributed £133.5bn to the UK economy in 2019 and accounts for almost 10% of UK employment.” Long-term help required Andrew McDonald, director of Andreou’s Bistro in Arbroath said that, while the announcement on furlough extension and continued VAT reduction is indeed welcome, businesses in the hospitality industry need long-term help to recover from the damage inflicted by the Covid-19 pandemic. “It is preferable for me for furlough to be extended. We definitely need support long-term as we have been closed for pretty much most of the year so, for me, it is a necessity for it to be extended,” he said. Andreou’s Bistro has been closed for almost a year due to the ongoing pandemic. And with 11 staff currently furloughed because he can only offer takeaways at the present time, without the scheme, he would be forced to make lay-offs. Andrew added: “All my staff are either on full-time furlough or part-time furlough so if restrictions were still in place long term I will need to keep people on furlough. “If there were restrictions and furlough wasn’t available from the government then I’d probably have to make reductions in staff numbers, so that’s what it is. “If we are able to open as normal, then I won’t need furlough. It just depends on how we can open. We need some sort of help in terms of wages if restrictions are still in place. “Being extended until September gives us an opportunity to try and return to normality over the summer.” VAT being continued at the lower level is welcome, too, but Andrew believes more could be done to add to measures announced in the budget. “An extension of the VAT at 5% is vital and I would like to see it extended longer term. I think it’s pretty important to be honest,” he said. “Everyone feels the same, restaurants and bars still need help. Ideally, people in bars and pubs would like a reduction of VAT on alcohol as that has not changed, it’s still 20% so the reduction only helps food sales. “It is a help, but there is more that could be done but I don’t think they are likely to reduce VAT on alcohol.” Hidden costs In Stonehaven, Aberdeenshire, Robert Lindsay, owner of beer firm and beer bars six°north , and The Marine Hotel , was disheartened by the budget news. With Scottish hospitality closed for now and the furlough scheme also putting pressure on business owners, Robert, who has bars in Aberdeen, Glasgow, Dundee and Edinburgh says it is hidden costs like pension and national insurance that seem to be forgotten. He added: “The employer will start to pay and if we’re not open by the Scottish Government then that will obviously cause us issues. The furlough scheme is national and without the individual businesses being allowed to trade then staff will continue to be on furlough. “The 20% that employers will have to pay by August/September, what is missed is the National Insurance and pension schemes that we also contribute to so employers will be contributing over 30% by that point for a business which will be operating on a reduced capacity more than likely. Robert Lindsay. “Alcohol duty is a huge portion of the price of beer from a brewer and a bars’ perspective. It would have been good if that could have been reduced, but unfortunately they can’t be seen to be going against the health lobby, which doesn’t help a huge part of the UK’s economy. “The 5% VAT is only on food sales and if you are a wet-led pub then, tough luck. It is 12.5% until April after the next six months. Bars and restaurants have been squeezed and there were calls for VAT reductions before the pandemic. “The consumer doesn’t understand that the business doesn’t pay VAT on food purchases, but we’re collecting VAT from the customer and passing it on. The actual sale price you see on your bill is not the price the business gets as they just have to give 20% of that to the government. It appears it will just go back to normal come April 2022. The Marine Hotel, Stonehaven. “Unfortunately breweries haven’t been eligible for rates relief as they’ve been seen as potentially being able to operate. There has been one recent grant funding been given from the Scottish Government, which, whilst is helpful, it wouldn’t cover your rent of a property for the year never mind your rates. Breweries have been operating in an environment where most of their customers have been closed but without assistance, albeit furlough when staff were furloughed. “However, saying that, without the UK and Scottish Government’s assistance none of us would be here.” Budget positivity Marc Crothall, chief executive of the Scottish Tourism Alliance (STA), said that the budget confirming the various measures were positive, although they still come with costs to businesses. “The extension of furlough until the end of September will be welcomed by businesses across the sector and relief will be felt by the many thousands of employees on furlough, given that Scotland’s tourism industry may not open fully until the summer months. Marc Crothall, Chief Executive of the STA. “However, furlough still comes at a cost to business and it will take some time for many businesses to start to trade viably again and meet the most basic costs. “I’ve spoken to a number of sectoral associations over the past week who have told me that businesses simply don’t have the cash reserves to get them beyond Easter; it’s therefore crucial that a robust and tapered financial support package is delivered quickly to the businesses who need it the most in addition to the packages of support announced today. “The STA has campaigned relentlessly along with UK Hospitality and other national tourism bodies for a long-term reduction in VAT and today’s announcement that the reduced 5% rate of VAT will be extended until the end of September to 12.5% for a further six months is good news. “The industry had hoped that the 5% rate would have been extended well into 2022 to allow businesses more time to recover and have the breathing space needed to meet the substantial costs of loan repayments and other significant costs which are looming on the horizon; we will continue to make the case for VAT not returning to 20% beyond March next year to stay competitive as a destination. “Overall, it’s a supportive budget but it is absolutely vital that businesses who have been hardest hit and will be last to open are given a realistic and supportive timescale to enable sustainable recovery for the sector.” Help support quality local journalism … become a digital subscriber to the Evening Telegraph

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