MONTH IN REVIEW
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HOTELS
Expedia reveals
summer ‘business
boom’ for hotels
New data from Expedia has revealed
hoteliers across the UK have enjoyed
a successful early summer period, with
a significant increase in hotel demand
compared with 2017.
The online travel agent (OTA) said
the boom follows a positive start to
the year thanks to a significant rise in
hotel demand by both domestic and
international visitors - fuelled by a
number of fast-growing markets.
The findings drawn from Q2 2018 data*
(April, May, June) show that demand for
UK hotels increased, with a number of
cities and regions across the country
seeing strong year-on-year growth.
Broader data for the EMEA region found
that London remains the number one
destination for global travellers who
booked on Expedia’s sites.
Regionally, Essex and Chester saw
the highest increase in demand, each
with a 35% rise year on year, whilst
East Anglia, Cambridge and North
Wales also experienced a substantial
boom in demand, each growing 30%
year on year. Demand in Scotland
and Wales overall also increased for
this quarter, compared with the same
period last year.
Expedia attributed the growth to
continued rise in UK staycations, with
significantly more demand for UK
hotels coming from domestic travellers.
The data showed that over 50% of
demand for UK hotels during the period
came from UK-based guests.
In addition to the increase in
UK-based demand, hoteliers have
continued to see positive growth
from international travellers. Demand
remains on the rise in traditionally
strong visitor markets such as the US
(almost 50% up year on year) and
Australia (over 45% up year on year).
September 2018
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ACQUISITION
Accor acquires
85% stake in 21c
Museum Hotels
AccorHotels has acquired a 85%
stake in 21c Museum Hotels,
an award-winning hospitality
management company that combines
museums and hotels to create “a new
kind of travel experience”.
21c combines a multi-venue
contemporary art museum, boutique
hotels and chef-driven restaurants, with
11 properties currently open and under
development across the United States.
The firm was founded in 2006 in
Louisville, USA, by philanthropists and
contemporary art collectors Laura
Lee Brown and Steve Wilson, who
rehabilitated a series of 19th Century
warehouses in Louisville’s downtown
arts and theater district to open the first
21c Museum Hotel.
The group will join AccorHotels’
MGallery collection of boutique
hotels, marking the introduction of
the MGallery brand into the North
American market. Co-founders Brown
and Wilson will retain a 15% stake in
the company, and will remain involved
in providing creative guidance.
The 21c division will continue
to be led by President & CEO
Craig Greenberg, while corporate
headquarters will also remain in
Louisville, Kentucky.
Accor announced that the purchase
price for the 85% stake is $51m (£39m),
including a potential earn out payment,
and said no real estate is included
in the acquisition. The transaction is
expected to be completed during the
third quarter of 2018.
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ACQUISITION
Harbour Hotels
acquires two
former Richardson
hotels for £15.5m
Harbour Hotels has continued its
expansion along the South coast with
the acquisition of two four-star hotels
from the Richardson Hotels Group for a
reported £15.5m.
The Metropole Hotel in Padstow and
the Fowey Hotel in Fowey were sold
by Colliers International on behalf of
joint administrators Mark Boughey and
Matthew Wild of RSM Restructuring
Advisory LLP.
The Metropole was marketed with
a guide price of £10m and the Fowey
Hotel was marketed at £5.5m, however
Colliers said that both properties were
sold for undisclosed sums in excess of
the guide price.
The Fowey Hotel sits above Fowey
Estuary and features 37 rooms, a
wedding venue and a two-rosette
restaurant and bar, while the Metropole
Hotel currently features 58 rooms,
spa, outdoor pool, and a two-rosette
restaurant and bar.
Ed Jefferson, from the hotels team
at Colliers International, said: “They
are a perfect addition to the Harbour
Hotels group, which is renowned for
its collection of prestigious hotels in
prime sites in coastal, country and city
locations around the south of England.
“We experienced unprecedented
demand for these assets from around
the world, from a variety of interested
parties. The region is now very much
on the map for top level hoteliers
and as a result of this process we are
looking for alternative acquisitions for a
number of under bidders.”
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