Hospitality entrepreneur Andrew Mikhail has grown his Mikhail Leisure Group rapidly across Liverpool city region – and in Southport his £10m of investments are helping transform the town. Tony McDonough reports

 

It was happy memories of coming to Southport as a child that inspired hospitality entrepreneur Andrew Mikhail to make his first investment in the town.

Nearly a decade ago he paid £1.1m for the Bold Hotel and invested a further £1.6m to transform the historical venue’s fortunes. But he didn’t stop there. Dismayed by the decay he saw around Andrew started buying up other properties.

Now, in 2023, Mikhail Leisure Group is the owner and operator of six thriving leisure venues having invested around £10m in total. Such has been the impact, particularly on Lord Street, he has helped create an unofficial ‘Northern Quarter’.

“I bought the Bold Hotel around 10 years ago. When I bought that it was partly because it was somewhere I used to go with my mum and dad when I was a kid,” Andrew told LBN.

“At that time the whole other side of Lord Street in that section was boarded up. There now is Punch Tarmeys on the corner, the Lord Street Hotel and The Grand.

“Basically I just kept on chipping away. I started to buy these properties one by one. But I can’t say there was any overall plan or strategy to it. It was just that we were doing well so I just kept going.”

Other venues include the Lord Street Hotel, and Mavericks, an American-themed bar opened in 2023 in the former Pizza Express. But by far Mikhail’s most ambitious project yet is 100-year old The Grand, a former casino and now a bustling leisure venue.

Andrew relaunched The Grand in July 2022 with The Grand Brasserie and Chloe’s Piano Bar on the ground floor and The Princess Grace Suite on the first floor. Harry’s Bar and the Sky Bar are due to open later this year.

And, as part of his £4m investment Andrew and his team have now created a top class conference venue, offering space for more than 300 people. It is a welcome facility for the town which will have to wait some time for the £73m Marine Lake Events Centre to open.

Last week Andrew told Stand Up For Southport: “There has been a real need for top class conference facilities in Southport for some time, especially since the closure of the former Southport Theatre and Convention Centre in 2020.”

Speaking to LBN, he added: “When the new Marine Lake Events Centre opens that is going to be incredible. It will be a real game-changer for the town. But there is a need right now to meet demand for events.

“We have created fantastic facilities at the Grand for conferences and events. It is a massive plus for the town. We have only just completed that development and we already have bookings coming in.”

Andrew is certainly spinning a lot of plates. As well as his Southport outlets he has significant interests in Liverpool city centre. His ventures in Liverpool’s Baltic Triangle district have proved a hit, particularly the gaming and arcade venue Arcains.

Mikhail also operates Punch Tarmey’s, The Brewery Tap and the much-loved Doctor Duncan’s as well as The Eccleston Arms in St Helens. Further afield the business is building a hotel in the Lake District.

 

 

Despite a tough economic environment, its strategy appears to be paying off. In December LBN reported Mikhail had seen a 34.7% increase in revenues to £11.4m during 2022.

Mikhail group managing director, Rob Ashcroft, offered an insight to what the group is expected to report for the year 2023.

“Our strategy has always been to reinvest in our existing venues at the same time as developing new concepts and venues within our group,” he said. “Today our diversity is now a real strength, especially during such challenging trading conditions.

“Our revenue growth in 2023 will be in excess of the 34.7% reported in 2022. Venues such as The Grand opening in 2022 have now contributed for the full year.

“While existing venues have maintained or increased revenues which is vital, they are the businesses that ensure we can continue our journey.

“Lord Street Hotel would not exist if it wasn’t for The Bold Hotel and The Grand needed both its sister venues performing to become a reality.

“There is always temptation to get excited and focus on the next new venue, however our controlled expansion is all about adopting the same focus and energy to what we already have as well as what is coming.

“We enter each venue as if it is the first time we have visited, because this is what our customers experience. The Bold is an example of this ethos having had two significant refurbishments since its original redevelopment less than 10 years ago.”

Rob explained that because people currently have less disposable income than they used to then they are more selective about where they spend it. The challenge for any operator, he added, was to make sure they “exceed expectations”.

“Although we report daily on many financial performance indicators across our business which enables us to react to any trends or fluctuations, the numbers themselves are just an indication we are on the right path,” he said.

“The focus is always on the factors we can control which influence the numbers. The financial success that is reported is born here in the daily conversations where we challenge ourselves to understand and deliver more.

“To increase revenue or footfall in times when footfall is suppressed can only be achieved by constant reanalysis of your product, customer service, customer experience and the small details that set the correct atmosphere.

“These components which result in a satisfied customer experience remain our focus, and increased revenue and net assets follow.

“Not only is there a reduction in customer spending for our teams to navigate, there is a consistent and relentless pressure on all costs across the business.

“In the last year due to the pressures of inflation we have regularly received proposed double digit price increases from suppliers. We have the same pressures on utility costs as all our customers are experiencing.

“We are constantly monitoring, reporting and taking actions to control the pressure raising costs. There have certainly been easier times to operate in the sector. We have a strong senior management team and we will not just navigate through this period, we will push through.”

Andrew is committed to all his projects but it is obvious his connection with Southport and his passion for helping to drive its renaissance is fierce.

“Many towns similar to Southport are struggling. When I look at other local North West towns they have all suffered,” he explained.

“Southport has also suffered but it has hung on in there. And over the past few years I think we have been a massive contributor to the town and its economic well being.

“We have gone from the Bold being a place that felt old and tired to a venue that has now come alive. Our redevelopment of The Bold started to attract more people to the area and it has just snowballed from there.

“We have redeveloped one side of Lord Street and we have created what is now being called the ‘Northern Quarter’ of Southport.

“It was within my interests to make what surrounds me better, to attract more people and make it a more attractive place to visit. I have transformed it into somewhere I would go with my wife and children.

“If go around city centres such as Liverpool, in some ways they are great in that the visitor economy has been revived. However, the atmosphere is not for everyone – certain parts are very studenty.

“There now seem to be fewer places for a certain type of customer – places where people of all ages feel comfortable. And that is what we have created here in Southport.”

Over the years Andrew has noted a marked change in peoples’ habits with customers of all ages now more discerning. He added: “When I was younger I was out three or four times a week. People aren’t doing that so much any more.

“They are more careful when and where they send their money. The younger generation is increasingly looking for an experience. Whereas when I was young you were just happy to go to the same pubs a few times a week, they demand more of something a bit different.

“And the older generations also are going out maybe once a week. They want to go somewhere nice for that one visit rather than poor or average places several times. They also want that good experience and they are happy to pay.”

During his 10 years as an investor in Southport, Andrew has been overwhelmed with the local support he has received.

He said: “It is very tough at the moment for the hospitality sector. We are lucky because we are well supported by the local Southport community.

“I regularly get cards and messages from people thanking me for what I have done for the town – that is very humbling.

“Without the local people coming out to support the town centre, Southport would still only be a weekend or holiday destination place. We have helped make it a location that has attracted a strong local customer base.

“Southport BID has been very helpful for us. It is not just the work they do on the ground – the Christmas lights etc, they help plug the gap left by the lack of council resources.

“We all know how local authorities are struggling for funding and Sefton is no exception to that, I believe they have been as supportive as they can be within their constraints. What the BID has done is come in and play a critical role in providing that support for local businesses.

 

 

“They, along with many people in Southport have really come together to create a sense of momentum in the town. There is so much happening in Southport now, it feels so much more lively and vibrant.”

Andrew offers much optimism but also tempers that with a dose of reality. Although the cost of living crisis has eased since the inflation peak of 2022/23, the economy remains difficult for both consumers and businesses.

“There are still some very tough times ahead for the economy,” said Andrew. “But we have been here before and we just need to push through it as best we can. There is no doubt the Government needs to help the hospitality industry more.

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“If you look over to Greater Manchester you have the Night Time Economy Adviser Sacha Lord repeatedly highlighting the need to support the sector by reducing VAT. I believe we are the 5th biggest sector in the UK and not just in our areas but across the country no doubt we need support.

“It is very tough to make margins in hospitality at the moment. We are doing ok because we have a really tight business model. I would imagine some other places are really struggling. We have a really good finance team.

“There are definitely more visitors coming to Southport now. The Grand is proving such a big pull.

“I think we are offering something there you might only normally expect to find in central London. People are coming from as far afield as Wales and Birmingham after seeing it on social media. They can see we have created something here that is really special.”