hotels


Now is the winter of discontent... Or is it?


PhiliPPe RossiteR is chief executive of the Institute of Hospitality


european sector remains ‘robust’


New research from profes- sional services firm Deloitte has found that Europe’s hospi tal i ty sector has remained “robust” through- out 2011, despite ongoing economic uncertainty. In a survey of senior indus-


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ccording to a recent survey by the Forum for Private Business, it would appear that more and more business owners are seek-


ing innovative ways in which to combat rising energy costs. Of the businesses sur- veyed, only 10 per cent indicated that they had taken no action to reduce the cost of utilities, while around 30 per cent had taken steps to reduce their energy consumption. A similar number said they had invested in more energy-efficient equipment. One of the key findings to emerge, how-


ever, was that many smaller companies face a number of challenges in their efforts to become more energy-efficient. A large majority of those responding to the survey felt that current environmental legislation tended to focus on the needs of larger firms. Furthermore, many smaller enterprises said they were unable to adopt more eco-friendly practices until they became profitable. Tis was echoed at a recent CBI panel


debate by Richard Spencer, head of sus- tainability at the Institute of Chartered Accountants in England and Wales. Commenting that many firms, even large ones, did not have the time or money to take key strategic decisions on energy-efficient investments, he said “at the smaller end it is all about cost. Tere is a huge concern about energy price, and all SMEs can think about is managing cash from week to week.” Tis phenomenon has a particular reso-


nance within the hospitality sector, around 80 per cent of which is made up of SMEs and micro-businesses. Of all parts of the industry, it is these businesses that are most challenged by current market conditions, yet, at the same time, possess limited resources to invest in the measures which could reduce their energy costs significantly. Recognising this, the Institute of


Hospitality is pointing its members to no- cost or low-cost solutions through a wide variety of information resources and pub- lications, as well as by working with Make it Cheaper, which has recently become one of its Business Partners. Becoming a member of the Institute could therefore be the best investment you could make this winter!


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try figures, more than half (51 per cent) said current trad- ing was better than expected and a further 17 per cent said that performance was “unchanged”. The research was undertaken ahead of the Deloitte Hotel Investment Conference in London and also found that investment in luxury hotel assets is poised to continue. Meanwhile, the UK was found to be the most popular location out of the top five European markets for future hotel develop- ments, with 46 per cent of votes. Nick van Marken, global head - advisory, travel, hospitality and leisure at Deloitte, said:


Te UK is the most popular location to attract investment in hotels


“Despite ongoing economic uncertainty, global hotel transactions in the first half of 2011 were more than double the same period in 2010. “Funding continues to be a challenge as


lenders focus on reducing their balance sheet risk. Cash-rich investors have been the main beneficiaries of this credit squeeze and several all-equity deals have been seen.”


Quintain to sell Wembley hotel to Sojourn


Quintain Estates and Development has announced that it has exchanged contracts for the sale of the Plaza Hotel in Wembley, London, to Sojourn Hotels Group for £15m. Te group is behind the mixed-use Wembley City development and had sought to transform


the hotel into residential accommodation as part of plans initially approved in 2004. However, Quintain said “changing mar-


kets” meant that it was now focussing on a “core leisure and entertainment” element of the scheme, including a new Hilton hotel.


MWB Group reports ‘challenging’ trading


MWB Group, owner of the Malmaison and Hotel du Vin boutique brands, has reported “challenging” conditions for the first four months of the financial year between 1 July and 18 November. Te group said demand for


the period had “soſtened” due to consumer confidence being impacted by UK and Eurozone economic concerns. However, Malmaison was


able to deliver RevPAR in line with figures for 2010 as a result of improvements in room rates, while overall reve- nues were up 1.5 per cent. Te period also saw the completion of five


MWB operates the Malmaison and Hotel du Vin chains of hotels A MWB spokesperson said: “Te comple-


hotel sales and leasebacks totalling £102.9m, with proceeds used to reduce Malmaison’s bor- rowings by around £100m to £180m.


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


tion of the Malmaison transactions, along with the group refinancing that was completed in June, provide a more stable platform.”


Twitter: @leisureopps © CYBERTREK 2011


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