browser

UK reports most hotel rooms in construction in Europe

The UK has reported the most hotel rooms in construction in Europe with 15,643 rooms in 148 hotels in the pipeline, according to STR. STR s August 2016 pipeline report shows Europe reported 64,454 rooms across 433 projects as in construction for the month; a 19.9% increase compared with August 2015.

150,530 rooms over 1,055 projects were under contract in Europe last month; a 15.7% increase in rooms under contract in year-on-year comparisons. Only three other countries reported more than 5,000 rooms in the construction phase: Germany (11,006 rooms in 56 hotels), Turkey (7,951 rooms in 52 hotels) and Russia (7,537 rooms in 37 hotels).

Under contract data includes projects in the construction, final planning and planning stages but not unconfirmed.

London records highest revpar figures of the year in July >>1

Birmingham hotels see spring occupancy rates boost >>2

London reports most rooms in construction in Europe >>3

Looking for a job?

See all the current hotel vacancies available with The Caterer4

Latest video from The Caterer

embedded content

References

  1. ^ London records highest revpar figures of the year in July >> (www.thecaterer.com)
  2. ^ Birmingham hotels see spring occupancy rates boost >> (www.thecaterer.com)
  3. ^ London reports most rooms in construction in Europe >> (www.thecaterer.com)
  4. ^ Looking for a job?

    See all the current hotel vacancies available with The Caterer (jobs.thecaterer.com)

Australian owner of Park Regis and Leisure Inn brands to expand in UK

Australian-owned StayWell Hospitality Group is to grow its Park Regis and Leisure Inn brands in the UK following a deal with Fiveways Hospitality. A master licensing agreement between the two parties will see the announcement of four new hotels in the UK over the next two years as part of StayWell s plans to open 100 hotels worldwide within the next three years. The properties will join the company s first UK hotel, the 272-bedroom Park Regis Birmingham, which opened in March 2016 following a 100m development.

Simon Wan, chief executive of StayWell, said the UK and Europe as a whole presents a great opportunity for the company s Park Regis (upscale hotels in prime locations) and Leisure Inn (operating in the economy sector) brands.

Fiveways Hospitality has a well established reputation and our partnership will deliver not only opportunities for further growth for StayWell in new destinations and cities but also offer top-shelf operational support to our hotel teams within the region, he explained. Fiveways Hospitality managing director, Stuart Broster agreed that the brands future within Europe looks bright following the formalisation of the partnership agreement.

We are delighted to be part of a growing global company such as StayWell Hospitality Group,” he said. “Europe is crying out for new hotel brands which are competitively priced and this is exactly what Park Regis and Leisure Inn will offer. StayWell currently has 35 hotels in Australia, Singapore, Indonesia, India, United Arab Emirates and the UK.

As well as managing the Park Regis Birmingham, Fiveways operates a wider portfolio of branded hotels and independent properties such as Down Hall in Hatfield Heath, Essex, and Pelham House in Lewes, East Sussex.

Australian Owner Of Park Regis And Leisure Inn Brands To Expand In UK

Simon Wan, chief executive of StayWell and Stuart Broster, managing director of Fiveways Hospitality

Europe s first Park Regis hotel appoints Robin Ford as GM >>1

Europe s first Park Regis hotel to open in Birmingham >>2

Australian hotel company StayWell to launch in the UK >>
3

References

  1. ^ Europe s first Park Regis hotel appoints Robin Ford as GM >> (www.thecaterer.com)
  2. ^ Europe s first Park Regis hotel to open in Birmingham >> (www.thecaterer.com)
  3. ^ Australian hotel company StayWell to launch in the UK >> (www.thecaterer.com)

Rising payroll costs squeeze UK hotel profits

The study, Benchmarking Beyond RevPAR, which polled a consistent sample of nearly 45,000 hotel bedrooms across the UK over 15 years, revealed that payroll costs now make up almost a third of a regional hotel s cost base. In the last 15 years payroll costs in regional hotels rose by an average of 26 per cent while profit per available room fell 26 per cent – from 41.67 in 2000 to 30.49 in 2015. The 80 per cent increase in the National Minimum Wage during that period is said to be main driver of increasing staff costs.

While profit has already taken a notable drop, the gulf between pay and profit is expected to widen further this year with the introduction of the National Living Wage in April and prospective annual increases, said HotStats.

Challenge

The hospitality intelligence firm predicts that managing payroll levels will remain a challenge for UK hoteliers as the number of hotel staff employed on minimum wage contracts in the UK is projected to increase to 40 per cent by 2020. HotStats CEO Pablo Alonso said the findings went some way to explaining the growth within the budget hotel and serviced apartment sectors.

It is not hard to understand the acceleration in the development of limited-service hotels when it is the service which is now the biggest cost of a hotel operation,” he said. Alonso said hoteliers should prepare for a further squeeze following Britain’s vote to leave the EU.

According to law firm Simpson Millar, businesses wanting to hire staff from outside the UK after Britain leaves the EU could face a bill of almost 3,000 per employee.

The ability of UK hoteliers to manage payroll levels could be further tested if the fall out from Brexit triggers a significant policy change regarding immigration to the UK,” he said.

1 2 3 27