Episode 66: Navigating Crisis and Reinvention – Lessons from Savvy Hotel Group’s Steven Hesketh

The hospitality industry has faced no greater challenge in recent memory than the COVID-19 pandemic. Overnight, hotels went from bustling with guests to struggling for survival. In Episode 66 of The Ceres Podcast, host Stelios Theocharous sits down with Steven Hesketh, the managing director of Savvy Hotel Group, to unpack how his business weathered the storm, the financial struggles he overcame, and what lessons the hospitality sector must learn to stay resilient.

A Business on the Brink – Making Tough Calls

Steven was faced with immediate, high-stakes decisions at the onset of the pandemic. His hotel group, which includes The Richmond in Liverpool, The Townhouse in Chester, and Sleep Eat Love, a “poshtel” in Liverpool, had to react swiftly. The uncertainty of lockdowns, a rapidly declining customer base, and ongoing operational costs forced him to make hard choices.

Rather than shutting down entirely, The Richmond remained open to house long-stay international guests and key workers, which ultimately saved the business. “If we hadn’t done that, the hotel probably wouldn’t have reopened,” Steven admits. The move helped offset the enormous costs of maintaining closed properties, from security and insurance to utilities.

The Reality of Running a Hotel in Crisis

One of the key takeaways from this episode is just how expensive it is to keep a hotel closed. While most assume closing the doors reduces costs, Steven highlights the hidden expenses—ongoing rent or mortgage payments, security measures, and even simply keeping servers and reservation systems online.

Bureaucratic delays compounded his battle for financial survival. Applying for financial aid like CBILS loans became a frustrating ordeal. “You’d wait on hold for hours just to be told to wait another seven days,” Steven recalls. Meanwhile, insurers flatly refused to support business interruption claims. These setbacks left businesses like his scrambling for cash flow while awaiting clarity from the government.

The Future of Hotels – Adapting to a New Normal

Steven doesn’t just dwell on the struggles—he also shares how the hospitality sector must adapt. His group has already begun implementing changes, including:

• A new approach to food service: Traditional buffet breakfasts are being replaced with pre-booked, plated meals to minimize congestion.

• A shift in room service: Orders will now be delivered in takeaway-style packaging instead of traditional trays.

• Technology-led efficiencies: The company is rolling out self-check-in kiosks to reduce queues, while mobile ordering apps streamline restaurant service.

Beyond operational changes, Steven argues that the industry needs long-term structural support. He strongly advocates VAT reductions to make dining out more affordable and believes the UK must do more to champion its hospitality industry. “The government needs to realize how valuable this sector is,” he says, calling for better representation at the policy level.

A Hard-Won Education in Business

Steven’s journey is one of learning through adversity. He candidly discusses his past mistakes, particularly his aggressive expansion 2018 that saw his business grow too quickly, leading to financial instability. The experience was a harsh but valuable lesson in managing cash flow and scaling sustainably—one that ultimately helped him navigate the even more significant storm of COVID-19.

His reflections on entrepreneurship are a must-listen for hospitality professionals. “You don’t understand what it means to run a business until you’re in it,” he admits, emphasising the resilience and adaptability required to survive in such an unpredictable industry.

Why This Episode Matters

This episode isn’t just about one hotelier’s experience—it’s a roadmap for the entire hospitality industry. Whether you run a hotel, restaurant, or bar, Steven’s insights into crisis management, financial resilience, and strategic adaptation offer invaluable lessons.

As the UK looks toward economic recovery, businesses must rethink old models, embrace digital transformation, and push for industry-wide support. If you’re in hospitality, this conversation is essential listening.

Don’t miss out on this deep dive into the realities of running a hospitality business in uncertain times. Listen to Episode 66 of The Ceres Podcast now and subscribe for more expert insights.