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Creating a framework for job creation


ufi ibrahim is chief executive officer of British Hospitality Association


Sahara acquires Park Lane hotel PETE HAymAn


India-based conglomerate Sahara India Pariwar has completed the acquisition of the iconic Grosvenor House Hotel in Mayfair, London. Located on Park Lane, the


T


he Prime Minister’s jobs sum- mit with executives from leading companies emphasised the importance of the hospital-


ity industry as a jobs creator. In the BHA’s report, which we published


in October – Creating Jobs in Britain – A Hospitality Economy Proposition, we said that hospitality could create 236,000 jobs by 2015 providing the right supportive frame- work was in place. Tis is the time to make sure that that framework is established. It’s critically important that government


realises that creating these jobs cannot be achieved alone. We need a positive partner- ship with government that recognises that policy and regulations can make or break this objective. Past governments have just not recognised the industry’s job-creating potential. For example, with the rate of VAT now at 20 per cent, the British hospitality industry is operating at an even greater dis- advantage to its European competitors than before, most of whom have reduced rates of VAT for hospitality services. We are very anxious to collaborate


with government on a joint study on the economic impact of the rate of VAT on hotel accommodation, visitor attractions and restaurant meals. I’m sure that the evidence gathered from


such a study would show that lowering the rate of VAT will stimulate greater demand from both the home and overseas markets, boost growth in the industry generally and help generate those 236,000 new jobs. Tis is only one area in which we want


to collaborate with government. Reducing the regulations that affect businesses and encouraging banks to take a more under- standing approach to lending are critical to the creation of new jobs. Needless reg- ulations are costly and time-consuming to implement while lack of funding holds back growth. We have called for a cross-cabinet committee for hospitality and tourism to coordinate policy across Whitehall in order to get the government to provide the right framework for industry to be able to cre- ate the jobs and skills that the country so urgently needs.


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property has been sold by Te Royal Bank of Scotland Group for a reported £470m. Grosvenor House Hotel


is currently run by Marriott International under the JW Marriott brand, but is now set to be jointly run with Sahara India Pariwar. In addition to the 420 bed-


Sahara India Pariwar plans to joint run the property with JW Marriott


rooms and 74 suites, the property features 4,000sq m (43,056sq ſt) of meeting space and the Great Room banqueting space. Sahara India Pariwar chair Subrata Roy


Sahara said: “Tis acquisition is a part of the major expansion plans of the group. In addi- tion to the acquisition of Grosvenor House,


London will be the gateway for Sahara to intro- duce some of its new business ventures.” It was also reported that Sahara India


Pariwar is to add a restaurant, a nightclub, a spa and a swimming pool to the Grosvenor House Hotel’s facilities. Richard Lewczynski of Blandford Goldsmith brokered the deal.


Palm Holdings in Edinburgh hotel purchase PETE HAymAn


Palm Holdings has bought two Edinburgh hotels from Town House Company (THC) for an undisclosed sum. Property advisers Colliers International completed the sale on behalf of THC, with


Palm Holdings expanding its presence in the city to four properties. Te Howard – an 18-room boutique hotel with planning consent for four apartments – and Te Channings - a 41-room town house property - had asking prices of £3.5m and £5.5m respectively.


Akkeron completes Forestdale Hotels deal Tom wAlkEr


Akkeron Hotels Group has acquired privately-owned Forestdale Hotels for an undisclosed sum. The deal includes Forestdale’s 18 hotels in the UK and increases the number of properties in Akkeron’s portfolio to 26. Te acquisition was funded


with a mixture of equity, deferred consideration and a new £32m, 18-year loan provided by Lloyds Banking Group. Forestdale’s collec- tion of hotels spread across England and the company has an annual turnover of £30m. Matthew Welbourn, managing director


Burley Manor Hotel, one of the 18 properties acquired by Akkeron


of Akkeron Hotels, said: “While the trad- ing outlook for regional hotel operators in the UK remains challenging, we continue


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


to see exciting opportunities to acquire high quality hotel assets that will benefit from cap- ital investment and the operational expertise that an operator of scale can provide.”


Twitter: @leisureopps © CYBERTREK 2011


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