Pandemic fallout, rising costs and impact on unsecured creditors: KPMG lifts the lid on financial pressures that pushed Botanic Way Ltd into insolvency and the deal that kept House Belfast’s doors open
Landlord acquires 31-bedroom hotel in pre-pack deal despite cost-cutting measures — including staff reductions, supplier renegotiations, and deferred spending — failing to prevent House Belfast’s slide into administration
A new report has revealed further details about the administration of a prominent boutique hotel in Belfast and the likely outcome for unsecured trade creditors.
The business w as subsequently rescued in a job-safeguarding pre-pack deal.
House Belfast is a 31-room hotel which is also home to a restaurant, bar and event space. Located on Botanic Avenue in Belfast, the hotel had been operated by Botanic Way Ltd, which entered administration on August 19 2025.
A report has now been filed by the administrators from KPMG who are overseeing the administration and agreed the sale of the business to the property's landlord, Havana Trading No.3 Ltd.
The report reveals that Botanic Way Ltd (trading as House Belfast) had historically enjoyed a strong trading performance, however in recent years the business struggled financially due to a mix of wider economic issues and challenges specific to the hospitality industry.
The Covid-19 pandemic significantly disrupted trading patterns, with prolonged periods of closure and reduced consumer confidence impacting revenue. Customer footfall and discretionary spending never recovered to pre-pandemic levels.
In addition to reduced income, the report adds that the business was adversely affected by inflationary pressures, particularly in energy costs, food and beverage supplies, and wage expectations. The cost-of-living crisis further impacted consumer spending
Despite efforts to streamline operations and reduce overheads, Botanic Way Ltd (trading as House Belfast) was unable to generate sufficient cash flow to meet its financial obligations, including rent, supplier payments, and tax obligations. These factors culminated in a deteriorating financial position.
Several measures were taken to stabilise its financial position and avoid the need for an insolvency process, including cost-cutting initiatives, such as reducing staffing levels, renegotiating supplier contracts, and deferring non-essential capital expenditure.
Management also sought to improve liquidity through discussions with the landlord regarding payment holidays and revised lending/payment terms. Marketing efforts were also increased to drive bookings and event revenue, and operational efficiencies were pursued to streamline service delivery.
Additionally, the company's director had historically provided financial support by introducing funds from his other business interests, helping to cover shortfalls in cash flow and sustain operations.
In light of growing financial difficulties, the director took the decision in February 2025 to seek a buyer for the business. A six month external marketing campaign was initiated in February by CBRE NI and the CBRE Dublin Hotels team, however a sale was not ultimately achievable.
James Neill and John Donaldson of KPMG were introduced to the director to assess the restructuring options available
Following extensive discussions, it became apparent that the best course of action was to ensure the continuation of the business by seeking a purchaser for either the share capital or the trade and assets of the company.
A deal was ultimately secured through a pre-pack administration.
But unsecured trade creditors, who were owed almost £1m at the time of the appointment, are not expected to receive a dividend as HMRC - in its role as a preferential creditor - has lodged an estimated claim for more than £600,000.
The sale to Havana Trading No.3 Ltd included all trading assets of the company, securing the ongoing operation of the hotel and preserving the employment of 46 full and part-time staff.
The administrators said the sale represented a significant step in stabilising the business and maintaining its role as a key hospitality venue in the city.
Speaking when the deal was announced, a spokesperson for Havana Trading No3 Ltd stated they have been working for a number of weeks to secure the future of the House Belfast business and team.
They added: "We are looking forward to investing in its future and reestablishing its presence in the city."
RBH Hospitality Management has been appointed by Ducales Group - a related party to Havana Trading No3 Ltd - to operate the venue.