Birch Selsdon hotel was 'consistently operating at a loss' before closure

The Birch Selsdon hotel in South Croydon was consistently operating at a loss before it fell into administration last year, documents show.

The 181-room property opened in March 2023 following a £15.3m investment but shut its doors just eight months later.

A report by administrators Moorfields Advisory said the hotel had welcomed fewer guests than expected despite a boost in visitor numbers during the summer months.

Around 163 staff were employed by the hotel when it appointed administrators.

“Since opening its doors, occupancy rates were lower than expected and, although there was an upward trend for the months of May to August, occupation ultimately performed poorly against forecasts,” the report said.

“This resulted in lower turnover than expected and, coupled with a significant fixed cost base and capex requirements, ultimately meant that the hotel was consistently operating at a loss.”

Administrators said the company was “considered likely to fail without a further capital injection”.

The 198-acre Selsdon Park Estate, which includes the Birch Selsdon hotel, has been put up for sale by Savills on behalf of administrators.

The hotel features two restaurants, three bars, six meeting and events rooms, a coworking space, gym, outdoor lido, and tennis court.

The site previously operated as the De Vere Selsdon Estate before it was taken over in 2022 as part of a joint venture between Birch Hospitality and real estate investment firm Aprirose.

The two companies also opened the Birch Cheshunt hotel in Hertfordshire on a 55-acre estate in 2020, but it closed and fell into administration the same week as its sister Selsdon site last November.

Savills put Theobalds Park Estate, home to the Birch Cheshunt hotel, on the market in December.