HOTELS


Confidence improves but fragility remains


PETER DUCKER is chief executive of the Institute of Hospitality


Luxury art hotel plans for Edinburgh school


Edinburgh’s imposing Royal High School could be trans- formed into a multi-million pound arts hotel under new plans outlined by developers. P ro p o s a l s f rom


20 per cent across the UK, with our 12 largest cities recording growth for what was the fourth consecutive quarter. As a consequence of strong operations,


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hotel transaction activity has increased sig- nificantly, with property firm Topland’s acquisition of the Feathers Hotel Group this month (January) the latest example. Consumer confidence is growing but


fragile, particularly with current global uncertainties such as the Ebola virus, the terrorist threat posed by Islamic extrem- ists, the UK’s position in Europe and the outcome of the General Election in May. Such issues could weigh on people’s


minds and negatively affect projected growth in hospitality and leisure sales. At a recent seminar, Russell Kett, chair


of HVS’s London office, outlined the condi- tions that might indicate an imminent crash in hotel investment. His list included over- supply, over-zealous lending, over-zealous valuers influenced by over-zealous owners; investors becoming frustrated by a lack of opportunity; and hotels failing to fight off the OTAs, prepare for a rise in interest rates, or retain enough talented employees. Ten there were the ‘black swans’ – ter-


rorism, extreme weather, war, geo-political disasters – that were almost impossible to predict and that could result in an immedi- ate fall in demand, followed by uncertainty. Historically, upturns in the economic


cycle have lasted between seven and 15 years from the bottom of a downturn. We are now into year six of the current cycle, so based on historical evidence, talk of an imminent crash is premature. In Europe, most major economies are


still operating at near recession levels. To put Britain in this wider context, European hotel transaction volume (including the UK) was £5.9bn in 2013, far below the £15.5bn and £14.3bn recorded in the boom years of 2006 and 2007, so although obvi- ously positive, the increases occurring now are coming from a very low base.


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or the UK hotel market, at least, the recession is fast receding. Te latest performance data shows average increases in RevPAR of


Duddings t on Ho u s e Properties (DHP) detail a development plan – designed by architect Gareth Hoskins – backed by £55m from a consortium of institutional investors led by DHP’s Bruce Hare and David Orr of the Urbanist Group. Hoskins was appointed


to oversee a major four-year refurbishment of the Scottish National Gallery in Edinburgh earlier this year and has already completed projects all over Scotland for clients such as Edinburgh Castle, Aberdeen Art Gallery and the National Museum of Scotland, as well as internationally. A host of speculative uses have been


Aſter several false dawns, the site is now set to become a luxury hotel


a restaurant, spa, cafe and public gallery space, have attracted the interest of three unnamed international hotel operators, none of whom already have a presence in Scotland. The developers are due to submit their


attached to the Grade A listed Palladian building since the school moved out 46 years ago, but none have ever come to fruition. Te latest plans for a high-end hotel, which include


full proposals to the city council this month and this is likely to be followed by three days of public consultations at the old Royal High School in February 2015. Details: http://lei.sr?a=j4w5p


Super fast Wi-Fi tops hotel wishlist


Fast and free, unlimited Wi-Fi tops the wish lists of travel- lers and ranks higher than getting a good night’s sleep, according to new research. Commissioned by Amba


Hotels, which has just opened its flagship property in London’s Charing Cross, the research found that 67 per cent of those questioned would rate a super-fast, free connection as the most influ- ential factor when choosing a hotel, with location rated second most important by 65 per cent. More than half (58 per cent) cited the need for a restful night’s sleep as high on their list, while only 40 per cent felt that friendly, knowledgeable staff were an important factor. Te research, carried out by Censuswide,


With more business being conducted on hand-held devices, Wi-Fi is key


questioned more than 1,000 UK residents aged between 18-60 who stay in hotels at least twice a year. It asked them what they looked for in a hotel, in addition to what they found irritating, or what would ruin their trip. Amba’s research found that more than


half (54 per cent) of respondents relied on Wi-Fi connections to check directions and


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


work emails, and 43 per cent for travel tips. The growing influence of technology on consumer habits backs up the findings of IMRG Capgemini’s Quarterly Benchmarking Report published last month, showing that online sales made via smartphone or tablet between August and October were up 10 per cent on the previous year. Tese figures are supported by recent ABTA research showing 18 per cent of online bookers now do so by tablet – compared to 10 per cent in 2013 – and 13 per cent by smartphone. Details: http://lei.sr?a=A8x8A


Twitter: @leisureopps © CYBERTREK 2015


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