hotEls


rGF funding decision is a lost opportunity


ufi ibrahim is chief executive officer of the British Hospitality Association


Von Essen enters administration Tom waLker


Te von Essen Hotels group, which runs some of the most luxurious hotels in the UK and Europe, has announced that it is in administration. It is understood that insol-


O


ne thing is clear: the Regional Growth Fund’s (RGF) failure to support tourism in England in its first round of grants worth


£440m is a lost chance for the industry. Aſter all the personal support that the


Prime Minister has given to tourism since being elected – and the publication of the government’s tourism strategy – the Fund’s refusal to accept any tourism bid, including VisitEngland’s £29m bid for domestic pro- motion in the UK, is very disappointing. It appears to ignore the Prime Minister’s


promise in the government’s strategy to take tourism to a ‘whole new level’ and ‘harness the huge potential that this area holds for our economy’. Unfortunately, the RGF decision takes tourism nowhere. It’s well known that research by the BHA shows that hospitality has the potential to create 236,000 new and additional jobs by 2015. Further BHA research to be released shortly will indicate the major contribution that hospitality makes to the economy and job creation in every local authority area. Tourism can deliver growth, create jobs,


support regeneration, and has a proven track record in skills – delivering excellent vocational training. But without adequate support, this potential is at risk. Support for VisitEngland’s bid would help boost demand for hospitality and tourism services and create new jobs in areas of the country where they are most badly needed. Te fact that the RGF ignored this argu-


ment is made worse by the removal of £60m of annual funding which has been lost with the abolition of Regional Development Agencies. Tis is further compounded by local authority cuts and reductions in both the VisitBritain and VisitEngland budgets. So little surprise, therefore, that the indus- try believes that the RGF’s decision is a totally lost opportunity. We’ve written to the Prime Minister and


tourism minister John Penrose to protest at the lack of interest which the Fund has shown in tourism. Te next round of bids has to be submitted by July, with a decision made in September. Tat means that the 2011 season will be largely over. We must hope for better news for 2012.


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vency practictioners Ernst and Young have been called in to oversee the operation of the hotel group, which is believed to have struggled with man- aging its debts. Tim Smith, director of hotel


consultancy HVS London, said von Essen’s failure could be down to its ambitious pro- gramme of acquiring properties. He said: “Te von Essen group has long been the subject of informal speculation largely due to the large number of hotels acquired in a relatively short space of time, the reliance on up-market guests wanting to stay in provincial UK locations, and the reported prices paid for the hotels.


Te von Essen Hotels group operates a number of luxury UK properties “It further proves that the provincial UK


hotel market is still very tough and price sen- sitive and whilst there remains demand for such properties, perhaps not to the level to cover the substantial costs of running such high quality hotels and the upkeep of such historic buildings.”


Gerald Lawless to join Travelodge board peTe Hayman


Travelodge has appointed Gerald Lawless, executive chair of Dubai-based Jumeirah Group, to its board with effect from 3 May. Lawless is poised to join the budget hotel operator as non-executive director, having


worked for the Dubai Holding-owned hotel mangement company since 1997. Further to his current role, he is also a mem-


ber of the Dubai Holding Executive Committee and the Emirates National Development Programme board of trustees.


Hotel Indigo opens new Glasgow property peTe Hayman


InterContinental Hotels Group’s (IHG) boutique brand – Hotel Indigo – has unveiled its third UK property on Waterloo Street, Glasgow. The 95-bedroom Hotel


Indigo Glasgow will be owned by Chardon Management and boasts one restaurant – the Limelight Bar and Grill – and a range of business facilities. Housed in a former indus-


trial building, the new hotel joins existing sites at London Paddington and London Tower Hill operating under the Hotel Indigo brand. A 151-bedroom Hotel Indigo is sched-


Hotel Indigo Glasgow is the brand’s third UK site, with more to follow Chardon Group chief executive Maurice


uled to open in Liverpool this summer, with three additional sites to launch in Edinburgh, Birmingham and Newcastle in 2012.


Read Leisure Opportunities online: www.leisureopportunities.co.uk/digital


Taylor said: “Te building has retained its orig- inal character while the design and artwork inside adds a contemporary twist.”


Twitter: @leisureopps © CYBERTREK 2011


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