Hotel Owner April 2018 | Page 7

MONTH IN REVIEW GO ONLINE www.hotelowner.co.uk START: THE MONTH’S NEWS BEGAN HERE HOSPITALITY JOBS Average pay for hospitality workers outstrips UK average income According to mobile bar service provider Drink A Mix there has never been a better time to get involved in the hospitality sector, as the average wage begins to outstrip the UK average salary. The group says that the hospitality industry is among the fastest growing sectors in the UK and now directly employs 3.2 million people, making it the fourth biggest provider of jobs in the UK. The sector is worth over £75bn to the UK economy and contributes a further £90bn through indirect means. The group added that the diverse and vast nature of the hospitality sector means that potential employees can transfer a diverse skill set across a wide range of workplaces within the industry; people can choose to work in hotels, restaurants, pubs, and bars. Drink a Mix explained that the size of the hospitality sector also means that there’s always a high demand for staff, meaning it’s possible to cash in on the rapidly increasing pay available. Bartenders and waiting staff, for example, will not only get their base rate of pay but can profit immensely by receiving tips from customers. A company spokesperson said: “We provide a bartender only service alongside our other ranges that include a mobile bar and alcohol provision, which means that the success of our business is driven primarily by the employees. “As the earnings of hospitality workers have started to rise, it’s become a much more attractive option for talented employees and we’ve been seeing a real change in the motivation of our staff as they feel well rewarded for their efforts.” April 2018 1 JOB SATISFACTION UKHospitality welcomes sector happiness study UKHospitality (UKH) has welcomed a study that has found high levels of satisfaction among hospitality workers. The study, published by Engaging Works, shows that among hospitality workers surveyed, 68% felt happy at work, compared to just 61% in other sectors. The survey also showed that workers in hospitality felt better respected than those in other industries (75% vs 70%), better cared for (63% vs 61%) and better recognised when they did something well (67% vs 63%). UKH chief executive Kate Nicholls said: “All of us in the hospitality sector are very proud of the work we do and continually try to impress upon those on the outside that our venues are fun, welcoming and rewarding places in which to work. “The results of this survey validate our work but it is a message that we need to communicate to parliamentarians, the media and the wider public that may have misconceptions about working in hospitality.” As a powerful and unified voice for the sector, that will be one of our priorities within UKHospitality: highlighting the opportunities that exist in the sector and supporting the great employers that provide them. Kate Nicholls, UKH chief executive 2 3 4 5 6 7 8 INVESTME NT Institutional investors and non-core hotel assets to drive UK hotel market Investment into UK hotels in 2018 is set to be driven by institutional activity and the maximisation of returns, according to new research. Real estate advisor Savills said total UK hotel transaction volumes reached £5.4bn in 2017, exceeding the 2016 total by 32%. It added that institutional investors were particularly active, driven by the hunt for income in the face of Brexit, and accounted for £602.6m of transactions - 39% higher than the levels recorded in 2016 with deal counts also up 40%. Leased serviced apartment assets, historically dominated by owner occupiers and private equity, are becoming more attractive due to their ability to be run with an operating partner and long term income offering, the research suggested. It found that branded hostels could also benefit from increased investment activity, with growth in the youth traveller market and the ability to maximise the yield from a single room being particularly attractive to investors. Martin Rogers, head of UK hotel transactions at Savills, said: “The UK hotel market had a strong 2017 and looking ahead to the rest of this year we expect the positive sentiment to continue. The depth of the sector ensures that a range of investors remain active in the market as both occupational demand and returns remain at a robust level.” He added: “The fundamental supporting operational demand over the longer term and particularly in the face of Brexit, leads us to believe investor appetite for UK hotels is set to remain firm in 2018.” www.hotelowner.co.uk 7