“2025 is turning into a huge inflection point”: Nadeem Boghani, Splendid Hospitality

“The need to reinvent our business model and operating model has accelerated,” says Nadeem Boghani, CEO of Splendid Hospitality Group.

The family-owned and run Splendid Hospitality Group owns and operates 24 UK hotels, some under the banners of brands such as Accor, Hilton, IHG and Marriott. The Group also runs 38 KFC franchises across the Midlands and North East of England, and Splendid Healthcare which provides care homes in the South East. 

Among the challenges Bohgani faces are significant disruptions and opportunities presented by intense competition in each of the sectors his business operates in. 

In a highly competitive environment, which is true of hotels, fast food and care homes in a country with an ageing population, Boghani says it is vital to be “on top of your game at all times”. 

In Splendid’s hotel business, that includes looking at strategic and opportunistic investments to augment its property portfolio, from investing in the expansion and upgrading of existing properties, to opening new hotels to cater for longer-term changes in tourist and business traveller behaviours.

Post-pandemic, Boghani says the business saw increased demand for hotels outside London which has held up as ‘staycations’ remain a greater consideration for UK customers on top of perennial demand among international visitors.

Being on top of its game also means combining the knowledge and experience of Splendid’s team with the benefits technology can bring.

This includes using data to identify new locations and analyse changing consumer behaviours, as well as exploring the power of AI to automate simple repetitive tasks, create greater efficiency and improve guest experience.

However, top of Boghani’s priorities right now is a need for structural change to his family-owned business following changes to UK inheritance tax, including the removal of business property relief.

Shifting from reactive to fundamental change

With its hotels, restaurants and care homes, Splendid is a property-heavy, family-owned business.

“The withdrawal of business property relief has been a significant blow, leading to major deliberations within the family about the future structure of the business,” says Boghani, adding the Group’s property portfolio is worth “several hundreds of millions of pounds”.

“So right now, a significant proportion of my focus has shifted to considering the structural changes we need to implement.”

Boghani is confident Splendid will navigate these challenges. But it will require a level of change, within a timeframe he was not anticipating. 

“Despite the short-term challenges, I remain optimistic about the medium-term potential for growth — if we can navigate 2025, which is looking like a huge inflection point for us.”

Boghani says, even in the pandemic — with all the impact that had on his hotel business in particular — he can’t remember a calendar year that felt as significant as 2025 does in terms of determining the future of his business. 

He adds the group would likely have remained “reactive” on its previous path, adapting and evolving as and when necessary in each part of its operation.

But the challenges occupying much of his time currently have created the need for a more fundamental level of change which he says needs to happen this year, ahead of inheritance tax changes coming into effect in 2026. 

A need for greater collaboration

“This too shall pass” is Boghani’s message to other family business owners worried about changes to inheritance tax.

He hopes the frustrations he feels are temporary and that future changes in the business environment will be a result of closer collaboration between the business community and government. 

He cites examples such as greater capital allowances and streamlined planning processes as measures that could accelerate investments, drive regional development and kickstart economic growth and job creation.