Hotel Owner September 2018 | Page 5

MONTH IN REVIEW GO ONLINE www.hotelowner.co.uk START: THE MONTH’S NEWS BEGAN HERE 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 1 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. 2 3 4 5 6 7 8 9 10 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.” www.hotelowner.co.uk 5