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
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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