Project Description

Project Details:

Location: Europe, United Kingdom, London

Field(s): Legal; Consulting

Tags: Expert witness; HoCoSo; Hospitality Consulting; Hotel Consulting Europe; Litigation; Arbitration; Hotel Dispute; Owner Dispute; London Hotel

The Great Eastern Hotel Limited

Arcadian International Plc and Conran & Partners teamed up to redevelop, extend and operate the former Great Eastern Hotel at Liverpool Street Station, London and create a 266-room design hotel with five distinct food and beverage outlets.  

Due to construction delays, the hotel opening was delayed by 44 calendar weeks and substantial additional costs were incurred. GEH, the claimant, was claiming for breach of contract to the tune of over £17m. Katharine Le Quesne worked with the Claimant’s appointed Hotel Expert to produce all the required analysis, Expert Reports and Joint Statements for a loss of profits claim on the hotel operation. 

The task was to estimate the loss of profits as a result of the delayed opening. To calculate loss of profits, Katharine generated a multi-year profit and loss statement, based on the date the hotel was originally due to have opened. By the end of the case, our findings were submitted in one Expert Report, an Addendum Report and several Joint Statements 

The period in dispute coincided with the peak of the market and a subsequent significant contraction following the events of 9/11. Katharine needed to assess how quickly the hotel would have built up each of its departments when the market was at its peak. The quantum of the loss of profits claim was highly sensitive to this point and therefore it was important that the position was pragmatic and defensible.   

The case went to court (England and Wales High Court – Technology & Construction Court). It was a landmark case in construction management claims and the client was satisfied with the financial award. 

Katharine when asked about her most enjoyable moment: “The Judge deemed the Claimant’s Hotel Expert evidence to be “reliable and carefully researched” (Judgement, Clause 373)

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