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tough time. Evidence of this is in added value. “A year and a half ago, value-added was loaded into the price, with inclusive terms such as dinner, bed and breakfast, wifi and other free deals, which allowed hotels to bounce back quickly when the market returned,” says group managing director of BSI Trevor Elswood. “But they are removing these only in pockets –
hot spots such as London, Manchester, Glasgow and Edinburgh, where availability is coming under pressure,” he says. Interestingly, none of the major players is admitting to much pain. For Barceló, trading remains tough, “but we have seen growth from both the transient travellers and meetings and event business in the early part of 2011, and we expect growth to continue at a steady rate throughout the year,” says a spokesperson. And Best Western GB posted 16 per cent growth year on year and 32 per cent growth for Q1 year on year. “We have to be very pleased with that: 2009 was a tough year for the corporate traveller but, since then, business has built up to pre-recession levels,” says head of marketing and e-commerce for Best Western Great Britain, Tim Wade. The major chains’ ability to recover can be attributed to a number of factors: “Global revenue is up six per cent, giving us a 23 per cent increase in operating profit,” says president EMEA for IHG's Kirk Kinsell. “This quarter’s results are strong and much of that is down to the strength of our brands, which means we can offer all our guests a hotel that suits their needs and pockets, whether they are travelling on business or on a break.” Not surprisingly, budget properties have seen
an upturn in business. Travelodge experienced a surge in new business customers from major banks, FTSE 100 and Blue Chip companies and, according to spokeswoman Shakila Ahmed, “A high proportion of these customers have been impressed by the service and price provided by Travelodge and have continued to stay in our properties for business and leisure.” Similarly, Premier Inn saw like for like occupancy improving 6.6 percentage points to 76.2 per cent to the end of March 2011 and, to capitalise on that, plans to increase room stock in the UK by nine per cent this year.
Feature: Hotel Groups in the UK Radisson Blu
NEW AND REVITALISED Investment in properties, brands and new products proves to have a positive effect on occupancy levels, which brings higher rates. “We invested heavily in the brand in April last year, around a ‘hotel with personality’ campaign,” says Best Western’s Tim Wade. “We are not a standard, formulaic experience, we are a group of individual, independent hotels and since then, the whole brand has seen significant growth. We are saying to the mid market, 'you don’t need to accept cookie cutter hotels, we are the opposite of that' – every property has a story. “And one of the benefits of investing has been
“Investment in properties, brands and new products proves to have a positive effect on occupancy levels, which in turn brings higher rates”
The new Days Inn hotel in Liverpool City Centre shows signs of an uplift for that particular brand. “It is stylish, next-generation design, in a strong city location and has free wifi interent access,” says vice president of operations for Wyndham
an increase in recruitment of quality independent four-star properties – 14 in the past 12 months – and that continues,” says Wade. Similarly, Choice Hotels enhanced brand standards in its UK Comfort and Quality properties in 2009, introducing free wifi internet access, upgraded bedding and a consistent breakfast offering. Higher standards and consistency were the bedrock of the overhaul: “It is important that a business traveller enjoys the same level of service, regardless of the city or location they are in,” says Brian Garvan. During 2010, Barceló introduced free wifi in lounges, started upgrading TVs to flatscreen (32inch minimum) and continued to invest in the fabric of hotels. Outlay totals some £17million since it arrived in the UK in 2007 to take over Paramount Hotels, and investment will continue.
Hotel Group, Belinda Atkins. Jurys has also upgraded more than 1,200 rooms in the past three years and will upgrade with continued investment (£20million) over the next three years, putting in quality duvets, towels and toiletries. “We provide great value, with bars and restaurants offering a wide choice of food and drinks,” says CEO John Brennan. A facelift can also work wonders for big brands
and as a result of IHG’s £650million relaunch of 3,300 Holiday Inns worldwide, new style properties are delivering RevPAR that is five per cent higher than those that have not yet benefited from investment. Other, smaller gestures also keep hoteliers ahead of the game. IHG launched a global iPad app so that guests can tap into concièrges’ local knowledge, wherever they are. Hilton has also applied itself, with branded iPhone apps. In addition, it is installing LightStay, a proprietary sustainability measurement system that calculates and analyses energy and water use and the waste and carbon outputs associated with building operations. By the end of this year, the group’s entire portfolio will be required to operate LightStay.
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