Author: Suzi Johnson

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Edwardian Hotels London first hotel group to enter EDGE Venues 100% club

Edwardian Hotels London is the first group of hotels to maximise their exposure to users of EDGE Venues, the new global venue sourcing solution for agents, corporates and associations.

By completing 100% of the data fields within the profiles of all its hotels, Edwardian has enhanced its positioning in venue searches for its 11 Radisson Blu Edwardian, Hotels in London and Manchester and its luxury May Fair Hotel in the heart of central London. This helps improve its opportunities to confirm business because EDGE Venues users can select multiple venues and compare their suitability for each event.

Jacqui Kavanagh, Managing Director of Trinity Event Solutions and EDGE Venues said: “Every event is different and that’s why we’ve built EDGE to have such a flexible search functionality. Users can compare the USPs and benefits of multiple venues in a single screen, to see which ones would work best for their event. The more information venues complete, the more likely they are to be matched for business they can support. Edwardian has recognised the strength of the search for driving conference, meetings and events business, and are taking full advantage of it.”

Kirsten Ariano, Account Director, Edwardian Hotels London had this to say about the digital platform: “It’s refreshing to work with a team which is dedicated to making sure we maximise our potential. We’ve worked with Trinity Event Solutions for many years, and they understand how the industry works and how, using technology, booking meetings can be made simpler. As soon as Trinity launched EDGE Venues, we knew the benefits it would bring and have been working with our properties to achieve a group place in the ‘100% Club’.”

Many independent venues have closely followed Edwardian Hotels with 100% profile completion, putting themselves in the running with big brands for meetings and events business.

Jacqui continues: “The feedback we’ve had in the first three months of EDGE Venues has been fantastic and we’re seeing more and more hotels push to get their data profile to 100%. To get a group of hotels on board such as the 12 Edwardian properties is a credit to the technology and usability of the booking platform. We’ve worked with key stakeholders within the industry to develop this technology and thrilled with its success even at this early stage.”

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‘Unprecedented’ growth boosts UK hotel investment to £7.4b

Investment in the UK hotels industry hit £7.4b in 2018, a £1.7b increase year-on-year, a rise of 29% and 102% above the 12-year average.

That is according to the latest research by global property adviser Knight Frank. The “unprecedented” growth in 2018 was due to a 50% increase in international investment, with overseas buyers responsible for £4.9b invested into the UK hotel market. There was a 50-50 split of the capital invested between London and the UK regions.

UK investors were responsible for a third of the investment (£2.5b), European investors 27% (£2b) with £1.6b from France. Inbound capital from the US increased by 77% to £1.5b (21%), due to significant institutional interest.

London continues to remain an attractive target with total investment climbing to £3.3b. The acquisition of hotel sites and the forward funding of hotel projects equated to 21% of the total investment. The interest from international investment was the leading driver of the capital’s hotel market, accounting for £2.4b of total investment.

Outside of London, Edinburgh was ranked the most attractive regional UK city for hotel investment, accounting for transactions totalling around £525m with a 13% share of the UK regional investment market.

A new trend that emerged in 2018 was the increase in activity from local authorities, capitalising on low-interest central government loans to purchase commercial property. In 2018, local councils invested a record £93m in the hotel sector, an increase of 182% on 2017 (£33m).

Shaun Roy, head of hotels at Knight Frank, said: “With rising interest rates and prolonged Brexit negotiations, there is a strong demand for secure, long-term fixed income assets which has led to an increase in investment in hotels.

“The capital continues to remain an attractive destination for global and domestic investors, with opportunistic hotel investors stimulated by the attractive levels of growth prospects in London over the long-term.

“Furthermore, the proportion of capital allocated to specialist property is evident from the growing trend for the inclusion of hotel real estate in institutional funds. There is now a much greater understanding of the fundamentals of hotels as a specialist sector, which has led to over £1.1b invested in hotel development and forward funding for future hotel projects.

“We envisage further inbound investment, should sterling weaken further following the UK’s exit from the EU. Overseas capital flows and institutional investment is expected to remain buoyant as greater strategic importance is placed on investing in alternative specialist sector businesses

“Thus far, the pace of investment in 2019 has been strong, with London in the alluring position of being the world’s most liquid and transparent real estate market, cementing its reputation as a safe haven for international capital.”

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Edinburgh remains top UK location for hotel investment

Edinburgh is still the top location for hotel investment in the UK, with Belfast second and Liverpool third, thanks to strong performance and low building costs.

The Colliers International UK Hotels Market Index said that Edinburgh had consistently strong occupancy and average daily room rate levels in 2018, while revenue per available room (revpar) had grown for the past four years.

The UK Hotels Market Index analyses 34 locations across the UK. London remains the strongest performer in terms of revpar, but only places sixth due to the high cost of land.

Plymouth and Oxford had been strong performers in the past, but have since fallen out of the top 10. Oxford recorded strong revpar levels in 2018, but has dropped due to high land costs, while Plymouth saw a decline in revpar last year.

Marc Finney, head of hotels and resorts consulting at Colliers International, said: “Overall, the UK hotel sector is in rude health. Operating performance is holding up well in most UK markets and London continues to perform well.

“The UK hotel market adds about 10,000 new rooms each year and this has increased in pace recently, with almost 18,000 new rooms expected to open in 2019. This leaves hotels as a rare bright spot in a property market that is facing challenges in other sectors.”

The top 10 UK spots for hotel investment and development are:
1 Edinburgh
2 Belfast
3 Liverpool
4 Chester
5 Bath
6 London
7 Glasgow
8 Brighton
9 Cambridge
10 Leeds.

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Is enough happening to support mental health and wellbeing training?

A panel of industry experts has emphasised the importance of business leaders taking responsibility for their staff and undergoing more mental health and wellbeing training.

The three-person panel discussed wellness and mental health within the meetings industry at International Confex 2019. The panel consisted of Jenner Carter, head of marketing at Lime Venue Portfolio and marketing chair at the HBAA, James Hitchen, GM of the Event Marketers Association (EMA), and Laila Datoo, a mindful business coach.

Carter, who recently picked up a qualification in Mental Health First Aid through the HBAA, spoke about the importance of leadership in addressing mental health in the work place.

“The industry has discussed at length the level of stress and anxiety found within event professionals, and awareness has been driven by some really great initiatives,” she said. “However, to turn awareness into action, leaders need to be trained to both spot staff showing signs of illness, and to intervene where possible.

“One of the things we learn through mental health first aid is the early warning signs, and how to handle intervening in a sensitive but professional manner.”

Hitchen said that the events industry needs to think about prevention rather than “just managing the symptoms of poor mental health”.

He said: “Leaders in business need to support their teams in improving their mental fitness. I believe it is a company’s responsibility to create conditions that supports living well.

“A company with a culture of wellbeing is happier, healthier, more productive and more profitable.”

The Mental Health Foundation estimate that 70 million work days are lost each year due to mental health problems in the UK, costing employers approximately £2.4bn per year.

The panel shared tips with the audience and emphasised the importance of the right level of training and awareness from senior leadership.

Datoo said: “Business leaders need to start equating wellbeing with performance and productivity. The happier and healthier your people, the better your bottom line.

“We shouldn’t wait for absenteeism figures to rise, people to leave or burnout or the culture to become toxic to address this.”

The HBAA runs a Mental Health First Aid (MHFA) accredited course that gives participants a recognised qualification to be a mental health first aider.

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HBAA hails promising trends and positive outlook for 2019

HBAA chair Angie Mason hailed the findings of the report, saying that “promising trends provide good reasons for a positive outlook on 2019”.

The report, developed in partnership with The MeetingsBenchmark Ltd. indicates that the average spend per meeting increased again from £1,954 in 2017 to £1,971 in 2018, an increase of almost 1 per cent. However, the average spend per delegate went down slightly from £88.35 in 2017 to £85.71 last year, a decrease of 3 per cent.

While the average day delegate rate (DDR) rose imperceptibly from £32.88 in 2017 to £32.89 last year, the average number of delegates also increased slightly from 53 to 54. With the average size of meetings booked to date for 2019 currently 72, forward prospects so far this year are encouraging.

There were also positive indications in the reduction of lead and conversion times. The average lead time for forward booking of events went down from 83.5 days to 79.7 days while the average conversion time went down slightly from 19 days to 18.5 days,

The HBAA Meetings Barometer also reveals a wide range in the average DDR across the country. There is a major difference between London (£39.97) and Newcastle (£24.91) with Manchester (£31.92), Birmingham (£29.87), Scotland (£27.54), Bristol (£27.51) and Leeds (£26.56) between them.

Angie Mason, HBAA chair said: “The HBAA Meetings Barometer once again provides a fascinating snapshot of the market and highlights several good reasons to be positive and optimistic about the year ahead.”

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DMC group targets UK companies with new ‘staycentive’ offer

With Brexit uncertainty causing UK holidaymakers to put off travelling abroad, destination management company (DMC) group – TCE Group is enabling UK companies to do the same.

TCE Group is creating incentive programmes and experiences in the UK designed to appeal to British companies rather than just international clients.

Group CEO Bill Prosser said: “Why take your incentive groups abroad when there are so many wonderful things you could do in the UK at lower cost and lower risk?

“In the last 15 years we have created amazing incentive programmes in the UK for clients from over 50 countries around the world.

“Britain is an awesome incentive destination and we have worked from the Scottish Highlands to Cornwall and just about everywhere in between.

“London is one of the world’s greatest cities, and we are blessed with many others – Liverpool, Edinburgh, Bath, Manchester and a dozen more.

“These UK destinations and experiences work to achieve the objectives of brands from around the world and can be just as effective for British businesses at lower cost.”

Summer holiday bookings abroad have fallen 6 per cent year-on-year since the start of the year in the UK according to analyst GFK, with the current economic and political uncertainty shouldering the blame. TCE Group is hoping that ‘staycentives’ will become as relevant to business events as staycations are to leisure travellers, with Prosser hailing them as a good moment to look at what the UK has to offer.

“Incentive programmes aimed at the UK market focus more on experiences and less on sightseeing and offer greater opportunities for delivering brand messages,” he added. “With everything to offer from red carpet premieres to the fastest zip wires in Europe nowhere offers brands more opportunities.”

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European hotel rooms see ‘strong growth’ in value

European Landmarks

Hotel values across Europe registered another strong year in 2018 showing 3% growth and reaching new highs, according to the annual European Hotel Valuation Index (HVI), compiled by global hotel consultancy HVS.

Although it was a more modest growth than that of 2017 at 3.9%, 2018 saw recovery for many cities as well as a levelling off in values for some markets, which had previously been depressed compared with the European average.

The annual HVI ranks the percentage change in the values of typically four-star and five-star hotels across 33 major European cities, both in Euro and local currency terms, as well as ranking each market in terms of the average price per hotel room.

Hotels in Lisbon, Moscow, Paris, Brussels and Berlin filled the top five slots in terms of highest percentage growth in values in euro terms, with Lisbon (9%), the year’s biggest climber.

On the back of the FIFA World Cup Moscow’s hotels recorded 8% growth in this year’s index with a RevPAR increase in euros of over 180% for June and July. St Petersburg showed a 6% increase, ranking it sixth in the HVI. In local currency value growth in these markets was even more pronounced.

Paris returned to the top five in this year’s index up 7%, while Berlin completed the top five also with 7% growth.

Only six of the 33 markets analysed experienced a value drop, with those at the bottom of the index, in euro terms, including Barcelona, which was badly impacted by the civil unrest caused by the strengthening of the Catalan independence movement; Hamburg, Manchester and Warsaw, which all suffered from an influx of new supply in the market; and Geneva and Stockholm, which were impacted by currency dynamics in 2018.

In terms of the absolute value of hotel rooms, those in Paris, London, Zurich, Geneva and Rome filled the top five slots for the most expensive in Europe, with Birmingham, Sofia, Bratislava, Bucharest and Manchester at the bottom end of the ranking.

Sophie Perret, director at HVS London, said: “Demand for hotel accommodation remains vigorous across most markets in Europe, and while economic growth for this cycle might be beyond its peak hotel demand is unlikely to suddenly fall away.

“For investors the advice is to factor in a slightly longer exit window and be cautious, but there are some good deals to be had by those seeking to acquire hotels in many European cities.”

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Research shows companies fail to carry out meetings risk assessments

New research reveals that many companies are failing to carry out proper risk assessments for every meeting despite the fact that 62 per cent of travel buyers say this is a growing priority.

A survey conducted by the Global Business Travel Association (GBTA) in partnership with WorldAware found that a quarter of organisations never or rarely conduct a formal risk assessment of specific venues.

Furthermore, 24 per cent never or rarely assess the risk of meeting locations, such as a particular city or neighbourhood.

While most travel programmes have a risk management solution in place, less than half (49 per cent) have one that includes MICE data. The GBTA says this lack of itinerary data makes it difficult for companies to track their travellers and, in turn, ensure their safety, with a third of travel buyers saying it is more difficult to track employees when they travel for meetings than for transient travel such as a sales trip.

In the event of an emergency, 80 per cent of respondents say they sometimes have a crisis communication plan for meetings, but only 36 per cent say they always have plans in place.

Some of the travel buyers responding to the survey admit they don’t have a risk solution that includes MICE data, but 28 per cent plan to adopt one within the next year.

Michael W McCormick, GBTA executive director and COO, commented: “Organisations are certainly making strides in the meetings risk management field, but current efforts leave something to be desired. Proper risk management can be the difference between a successful event and a catastrophic disaster. Although it’s encouraging to see more organisations do assess the risk of meeting locations, the research shows that many companies have some catching up to do.”

Theresa Thomas, senior VP of strategic partnerships at WorldAware, added: “Successful risk management for meetings and events requires organisations to clearly assign risk management responsibilities to an individual or team of individuals, and that responsibility must be comprehensive. In other words, those responsible for risk management must be empowered to assess risks related to location at a city and neighbourhood level, the venue itself and ground transportation, including public transit as well as private transportation.”

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New Cvent research suggests corporate travel budgets are expected to rise

According to new research, seven in ten European corporate travel buyers anticipate an increase in travel budgets this year, with 16 per cent expecting significant growth, but many said they face multiple challenges over the next 12 months.

The survey of 500 corporate travel decision makers by meetings, events and hospitality technology provider Cvent found German buyers are the most optimistic, predicting a significant increase in their budget for 2019. Only a quarter overall believe their allocation of company funds will remain the same.

Forty-four per cent of respondents manage spend of more than €1 million.

Nearly six in ten (57 per cent) of those surveyed said their hotel sourcing process occurs once a year, showing many buyers are still focused on the annual Request for Proposal (RFP). Meanwhile one in five undertake this task every two years and 16 per cent look for properties more than once a year.

Furthermore, buyers pointed to rising hotel costs and value for money (both 44.5 per cent) as the top challenges they face this year, with German decision makers especially worried about the latter (46.5 per cent).

Nearly six in ten UK respondents (59 per cent) said Brexit uncertainty was their main concern. The UK’s exit from the EU is also creating a challenge for buyers in Spain (31.7 per cent), Germany (30.7 per cent), Italy (30 per cent) and France (17.8 per cent).

Safety and security were regarded as less of an issue compared to costs (37.4 per cent overall).

Cvent says the research highlights clear opportunities for the corporate hospitality industry. When asked about their biggest challenges when negotiating with hotels, more than a quarter (26 per cent) cited rate increases that were above city or benchmark averages, followed by a lack of transparency (17.4 per cent) and bids that do not meet the requirements set out in the RFP (15.8 per cent).

A lack of transparency was the biggest issue for 24 per cent of UK decision makers.

Meanwhile, 13 per cent across Europe highlighted poor, slow, or incomplete responses from hotels and 11 per cent said chain account managers were not relaying their company information to specific hotels.

And when choosing which hotels to use in their programme, location tops the list, with 69 per cent of respondents prioritising this, followed by rates (59.7 per cent), amenities (53.6 per cent), star rating (30.8 per cent) and loyalty programmes (25.1 per cent). One per cent said they don’t prioritise any particular features, with the remaining 0.6 per cent citing other factors.

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mia to debate AI and Brexit at Future Fit Conference

The Meetings Industry Association (mia) is planning a giant leap into the future with expert-led discussions on sustainability, AI and Brexit at its upcoming Future Fit Conference.

On Monday 11 March the mia, which has more than 800 members, will host a day of expert-led insights into the future of the meetings industry.

Held at America Square in London, the Future Fit Conference will hear from keynote speakers on issues such as artificial intelligence (AI) and augmented reality, sustainability and the potential opportunities posed by Brexit.

With nearly 40 years of industry experience, expert speaker at the event Richard Lewis believes it’s important to be prepared for the positive impact technological advances will have on the business meetings and events industry.

He said: “Without a doubt, disruption will continue at a faster pace than ever before and our industry will not be immune from change.

“In fact, it is about time we woke up. AI, AGI, robotics, blockchain, AR and Infotech will positively impact almost every aspect of travel and tourism.

“Disruptors will disrupt the disruptors. New entrants will challenge legacy operators and we have seen nothing yet.”

Delegates will hear speakers scrutinise AI as a money saving tool, address issues surrounding single-use plastics in the industry and discuss the current economic forecast.

Jane Longhurst, chief executive of mia, said: “Future Fit will offer delegates the enviable chance to discover what the future holds for our industry.

“The fantastic programme is designed to engage, educate and perhaps even make delegates feel a little bit uncomfortable.

“As a sector we have the opportunity to be bold and develop new and innovative plans to drive business growth by embracing and taking advantage of both the technological advances set to occur over the coming years and the opportunities presented by Brexit.

“At the same time, we have a huge responsibility to ensure that the sector takes its social responsibility seriously and how small steps can be made for larger gains by reducing our reliance on single-use plastic.”

Opening the conference is veteran broadcaster and journalist Declan Curry who will discuss the current economy and the challenges and opportunities for a post-Brexit UK.

Mia chair Kay England will tell delegates how the association is championing best practice with its #20PercentLess campaign.

The #20Percentless campaign is supported by the Zoological Society of London’s project officer Rachel Shairp, who is a leader of #OneLess.

Their sessions will highlight the necessary steps the industry should be taking to change its behaviour and safeguard our future.

Atsushi Ishii and keynote speaker Azeem Azhar will take to the stage to reveal the opportunities presented by AI.

Giraffe Innovation’s Rob Holdway will be looking at plastics and packaging alternatives and 15Hatfield’s Warren Campbell will be quizzed by conference chair Peter Hancock about best practice and the steps they are currently putting in place.

Professor David Russell, will discuss the importance of ecological consciousness amid cleaning and waste, food procurement, food logistics and guest services ahead of Expo 2020 Dubai.