The market for concierge services often requires the ability to fly and sample the world's most luxurious locations. COVID-19 has hit this market hard. One of the most prominent players in the field has had to consolidate and is reportedly considering selling off its property business.

UK-based luxury concierge group Quintessentially is reportedly planning to spin off its property arm after a year of restructuring in which it shed about half of its employees, according to the Daily Telegraph and other media reports. The story shows how the pandemic has hurt some firms serving the international jet set of HNW individuals. 

The company, based in Portland Place, London, has signed heads of terms for a management buyout of Quintessentially Estates, reports said. This news service, which has contacted Quintessentially for comment about such a sale, was unable to locate a direct reference to this matter in the firm’s filing with Companies House. The accounts were filed more than a year late as the concierge firm restructured and wrestled with the disruption caused by COVID-19. 

Quintessentially’s directors include Ben Elliott, who co-founded the firm in 2000 with Aaron Simpson and Paul Drummond.

The pandemic’s impact on air travel and tourism has taken its toll on luxury sector businesses. (Meanwhile, the firm said that Brexit hadn’t had much impact.) Until the virus broke out, commentaries on the global concierge sector were optimistic, citing demand from HNW individuals for luxury travel and access to high-end properties and experiences. For example, a report by Million In$ights, a research database, said the global concierge services sector was worth $537.6 million in 2018 and had projected a compound annual growth rate for 2019-2025. (Whether that is the actual outcome may be doubtful, given the virus.) Another report estimated that the sector would reach $773.3 million by 2025 (source:Grand View Research, Inc, August 2019.)

Accounts
The Quintessentially accounts for the year ended 30 April 2019 (filed on 7 May this year) said: “Quintessentially has built a considerable business serving successful individuals both directly and through corporate partnerships.” The statement said business lines have been streamlined, taking place during its 2019 financial year. “Further streamlining of the group’s corporate structure is anticipated as further synergies are identified,” it continued, without elaborating.

The statement added that it looked forward to a “very bright 2021” and significant growth into 2020 and beyond. “The group is already seeing a large uptick in travel bookings for the third quarter of 2021 and activity across the group looks set to rebound significantly once the vaccine programme has been rolled out and people are allowed to return to pre-COVID activity levels,” it said.

Quintessentially Estates buys, sells and rents luxury properties in areas including Monaco, Miami and Hong Kong.

Performance for 2019 was “consistent” with the previous year. Revenues rose to £51.5 million ($73.2 million) from £50.4 million a year before; gross profit rose to £20.7 million from £19.1 million. With costs taken into account, the final 2019 result was an operating loss of £3.9 million for the year, vs a loss of £4.5 million in 2018, although that included non-recurring costs linked to restructuring and write-offs, Quintessentially said.

This news service has contacted Quintessentially for comment and may update in due course. It hadn’t replied at the time of going to press.