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When will the
government get it?
With another set of red tape to hit our sector,
2010 could be more challenging than 2009
T
he recent Best Western
Investment conference showed
the independent hotel sector to
be in good heart, determined to
expand and develop in what is
The property used to house the Royal Scottish Automobile Club generally considered to be a difficult
sector in which to operate. A quick
Blythswood hotel opens
glance at the entries for the 2010
Hotel Excellence Awards 2010 – the
Former automobile club building reopens as hotel
winners will be announced in the New
Year – also emphasizes the fact that
By Martin Nash offers 100 bedrooms including action taken to solve a problem has
six suites and a top floor typically led to higher occupancies, BOB COttOn is
Blythswood Square, a five star penthouse complete with higher yields and higher profits even chief executive of
hotel housed in the former rooftop hot tub. It will also in these difficult times. the BHA. Leisure
Royal Scottish Automobile Club house Glasgow's first luxury All this during the deepest recession Opportunities is a
(RSAC) building in Glasgow, spa offering indigenous in a generation. Yet there’s no doubt member benefit of
Scotland, has opened. Scottish treatments, a 120-cover that trading is still difficult. No-one the BHA, for your
The £25m redevelopment of restaurant created from the knows whether consumer spending free copy call
one of the city's most iconic RSAC's ballroom, bars, a will pick up in 2010. There are just too 01462 471932
buildings has been carried out private screening room and many unknowns for accurate prediction
by boutique hotel group, The event facilities. but what is certain is that costs are continuing to rise – and
Town House Collection. The Other highlights of the hotel almost all have been caused by government decisions and
opening is around 12 months include a 35m salon featuring regulations. The level of VAT is about to increase back to 17.5
later than originally planned two original fireplaces and a per cent in January – who knows what level it might reach
and marks the first of a three private screening room which after the new government takes office?
phase opening which will run will be furnished in more than National Insurance rates are due to increase in 2011. The
into the New Year. Overlooking 40 individual designs of National Minimum Wage rises every year – dragging other
urban green spaces, the hotel Harris Tweed. wage rates up in its wake; as a result all payroll costs are
constantly forced upwards by government pressure. Business
rates are rising significantly next year. There are plans for
Cairn acquires Newcastle's Imperial
four weeks paternity leave from birth for fathers; only the
recession prevented the current nine-month maternity leave
Privately owned hotel fitness club with a swimming turning into 12 months.
operator Cairn Hotel Group pool and spa bath. It is inconceivable that the government does not recognise
has acquired the Imperial The Cairn Hotel Group that all these costs represent an additional burden on
Hotel in Newcastle-upon- currently operates 16 hotels businesses that are still fighting a recession.
Tyne from F&C Reit Asset across England and Scotland, The hospitality industry – and hotels in particular – may
Management for an undis- including the Barkston have come through it so far in reasonably good shape but only
closed sum. Gardens Hotel in Earl's Court, by cutting costs to the bone, reducing jobs and offering
Formerly operating under London; the Royal British special deals to boost demand (but at much reduced margins).
the Swallow brand, the Hotel in central Edinburgh; Now, these new government measures are about to impose
122-bedroom hotel's facilities and the Gardens Hotel in the yet more new burdens on those operators who have so far
include the 80-cover Chapters heart of Manchester. The survived the downturn through their own talent and
Restaurant; the 50-cover company plans to invest a ingenuity. Can this continue?
Library Bar; seven conferenc- substantial sum to re-position Without government understanding – and a moratorium on
ing and meeting rooms; and a the hotel. more regulations that just add cost for seemingly little benefit
– the next 12 months could be more critical than 2009.
© Cybertrek 2009 Read Leisure Opportunities online www.leisureopportunities.com/digita l 13
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