Hotel Owner October 2017 | Page 12

MONTH IN REVIEW MONTH IN REVIEW www.hotelowner.co.uk This is just not a level playing field . Not only is Airbnb attacking hotel market share, by offering cheaper room rates , but is able to do this through the unfair advantage of not paying business rates . John Webber, head of rating at Colliers International PROPERTY Principal Hotel Company to free up £200m with ‘disposal’ of 20 properties The Principal Hotel Company is expected to make at least £200m with the disposal of its non-core hotels. This programme is part of a strategy to focus on prominent city hotels under the Principal brand and leading country estate hotels and modern events spaces, recently relaunched under the De Vere brand. The disposals completed to date include Gorse Hill near Woking, Kenwood Hall in Sheffield, New Place in Southampton, The Oxford Witney Hotel and Warbrook House in Hampshire, to a variety of buyers including overseas investors, UK- based investment funds and high net worth individuals. Two of the three remaining hotels to be sold are currently being marketed by Christie & Co (Theobalds Estate in Cheshunt and Wychwood Park in Crewe), with another hotel under offer. Tony Troy, CEO of the Principal Hotel Company, said: “The disposal of our non-core hotels and venues was a key part of the shareholders’ strategy to focus the company on transforming its larger properties into what we now believe is the finest collection of UK hotels ever to be assembled under one group”. ACCOLADES Luxury Scottish hotel strips itself of Michelin star An award-winning hotel in Scotland has said it is “walking away” from its Michelin-star status as rating was said to have put an “enormous stress” on business. The Boath House in Auldearn has held the rating for 10 years, but owners Don and Wendy Matheson say its guests want a more “relaxed and informal” experience. It also said the expectations of the achievement put the hotel’s restaurant “at odds with achievable profit margins” and claimed it was discouraging customers. Mrs Matheson told The Herald: “Whilst we are extremely proud of the Michelin star we gained 10 years ago and it undoubtedly enhanced our reputation, our restaurant has consistently made a loss. “We believe that the expectations from Michelin are at odds with achievable profit margins and put an enormous stress on a small family-run business like ours.” The couple insisted that they were holding “no malice” against the rating. The 19th Century Georgian mansion hotel has held four AA stars since 2006 and was awarded with a Michelin star in 2009. NEWS ANALYSIS In July, the UK saw the highest number of inbound visitors since records began. Regardless of why the country was particularly desirable this year, it has only been to the benefit to the industry. However, hotel growth is set to slow down next year due to an increase of rooms. While there’s no denying the success of the industry it will be interesting to see how the change in figures will 1 2 3 4 5 EXPANSION Yotel secures $250m investment from Starwood Capital Group Hotel chain Yotel has secured a $250m (£186m) investment from Starwood Capital Group for a 30% stake in the company. The funds will be invested into real estate acquisitions for new builds, hotel conversions and adaptive reuse properties as Yotel sets to expand on an international scale, with specific focus on Europe, North America and Asia. It also will help Yotel strengthen its brand identity and enhance its innovative guest experience. Starwood has already secured city centre sites in Edinburgh, Glasgow and Amsterdam which are expected to open as Yotels by 2019. Cody Bradshaw, managing director, head of European hotels at Starwood Capital Group and Sarah Broughton, senior vice president, Starwood Capital Group will join the Yotel board of directors. This will be alongside representatives of the company’s major shareholders including the Al-Bahar Group, IFA Hotels & Resorts, United Investment Portugal and Kuwait Real Estate Company (AQARAT) which jointly own 65% stake in the company. Barry Sternlicht, chairman and CEO of Starwood Capital Group, said: “This strategic partnership and investment highlights Starwood’s longstanding passion and commitment to invest in innovative hospitality platforms. Yotel is an exciting brand focused on technology, smart design and a distinct guest experience at an affordable price, which is the right strategy amid the current wave of digital disruption. “[The company] has global appeal and can be easily scaled up with key strategic acquisitions and developments in desired city centre and airport locations.” affect future confidence levels. END: THAT’S ALL. YOU ARE NOW UP TO DATE 12 www.hotelowner.co.uk October 2017