Author: Suzi Johnson

Posted on

Global warming top travel risk for 2020

The impact of climate change and the potential final year of the Trump administration will be the two most important sources of travel risk in the year ahead, according to travel risk intelligence company Riskline.

The company’s analysts compiled a list of the top 10 travel risks to watch out for in 2020, and climate change topped the board for its potential to cause abnormal weather patterns and natural disasters such as hurricanes, heat waves and floods.

Scientists predict an 80% chance of an El Niño weather pattern occurring in 2020, bringing disastrous heavy rainfall and long droughts to countries around the Pacific Ocean and paving the way for mosquito-borne diseases.

Political, social and economic unrest caused by the US 2020 elections, Brexit and the US-China trade war could also cause travel disruption, according to Riskline’s experts.

Other major travel threats include Islamic terrorism, far-right terrorism, and the outbreak of infectious diseases amid on-going migration and a highly mobile world population.

Riskline also pointed to major sporting events like the Summer Olympics in Japan, the UEFA Euro, the Copa América in Argentina and Colombia and the three cycling Grand Tours as likely to pose risks to travellers in 2020 due to overcrowding, terrorism or potential labour strikes.

Internet blackouts could also cause problems to travellers, as well as civil protests and water shortages in regions such as India and Pakistan, and in Middle Eastern countries such as Iran, Iraq and Lebanon.

Riskline’s Director of Operations, Adam Schrader, says: “All of the predicted risks we’ve shared are equally important, but two of them in particular will underpin the most dangerous security threats in 2020: the ongoing effects of climate change and the potential final year of the Trump administration.

“In the case of the former, it will be the mostly unseen, long-term effects that are the greater danger, as droughts or floods destroy land and livelihoods and become the catalysts for new violent conflicts and forced migration.

“Meanwhile the prospect that 2020 could be the final year of the Trump presidency bodes ill for international peace. Both allies and antagonists of the United States may feel that the level of impunity they have enjoyed in foreign affairs since 2016 may be coming to an end.”

Posted on

2020 set for record investment into London hotels

The volume of investment into London hotels could reach record levels in the first quarter of 2020, with approximately £1.5b expected to transact in the capital, according to international real estate advisor Savills.

Rob Stapleton, director at the Savills Hotels team, said: “Investor confidence in the UK hotel market remains high and while political uncertainty in 2019 had an impact on overall deal volumes, yields remained low highlighting that, for the right assets, the UK continues to be a key focus for emerging hotel brands and international capital.

“We have already noted a marked increase in investor enquiries since the General Election result and anticipate this to translate into increased investment activity across the UK hotel market in 2020, with several notable transactions expected to transact in the first half of the year.”

Savills has recorded that UK hotel transactions reached £4.64b in 2019, down 42% year-on-year but 11% above the 10-year average. The number of transactions across the country was also down 47% year-on-year and 6% below the average.

Overseas investors were accountable for 59% of market share, with the top three by country being, Hong Kong (c. £1b), Thailand (c.£450m), and Israel (c.£260m). Portfolio transactions accounted for 52% of investment activity in the UK, similar to 2018’s 53%.

Transactions into London totalled £2.31b, accounting for almost 50% of all UK hotel investment activity. Savills recorded the total volume for the rest of the UK was around £2.33b, representing a 16% (South East), 20% (North), 9% (Scotland) and 6% (South West) regional split.

Key single asset deals in 2019 included: Harrington Hall, sold to London Central Portfolio and ACP off a guide price of £130m; the freehold of the Sofitel London Gatwick which changed hands for a reported £150m; and the Crowne Plaza Kensington, sold to a Singapore consortium led by Heeton Holdings for £83m.

Key portfolio deals included: four Grange hotels sold to Queensgate Investments for £1b; ‘Project Mauve’ (17 InterContinental Hotels Group, Marriott and Hilton hotels were sold to DTP Infinities Corporation for a reported £450m); and Topland’s sale of the Hallmark portfolio for £250m.

Tim Stoyle, head of valuations at the Savills Hotels team, added: “Looking forward to this year we expect to see more stock coming to market across all grades of accommodation but primarily driven by demand for the budget and four-star segments.

“Demand for these assets in London and in core locations across the rest of the UK will be underpinned by the operational performance resulting from the growth of the staycation market, as well as the continued growth in international tourist numbers.”

Posted on

Good luck to the Meetings and Incentive Travel Awards finalists

The 2020 M&IT Awards finalists have been announced and we’re delighted to see many of our EDGE Venues licensees have made the shortlist.

Here’s a snapshot of our licensees who have made the cut…

Best UK Conference Centre
Best Overseas Conference Centre
Best Venue Group Meeting Product
  • De Vere Venues
  • Hilton Worldwide
  • Marriott International
  • QHotels
  • Radisson Hotel Group

Good luck to you all and to other finalists for what no doubt will be an exciting and rewarding awards ceremony at Evolution London on Friday 28 February.

Posted on

Corporate travel buyer budget forecasts at five year high

The number of corporate travel buyers forecasting bigger budgets for the year ahead is at a five-year high, according to annual research conducted by Business Travel Show. 41 per cent of buyers polled said they would have more money to spend on travel in 2020, compared to 33 per cent last year.

The volume of buyers predicting an increase in travel costs was also at a record high (49 per cent compared to 43 per cent in 2018) and there was significant uplift in those expecting to manage more trips (52 per cent compared to 33 per cent).

114 European buyers took part in this year’s Business Travel Show poll, 56 per cent from the UK, 35 per cent from continental Europe and 9 per cent from the rest of the world. 61 per cent of buyers responded control budgets in excess of £1m.

Other highlights from the survey:

  • 45 per cent of buyers polled will have more to spend on accommodation in 2020 – an increase of 16 per cent on 2019
  • 65 per cent are expecting to book more room nights, compared to 40 per cent a year ago
  • 41 per cent will have bigger airline budgets, rising 10 per cent over last year

Business Travel Show group event director David Chapple said: “Last year’s survey showed a downturn in numbers across the board – with fewer buyers predicting airline, accommodation and overall budget increases. This was unsurprising with Brexit on the horizon and businesses holding back on both decision-making and spending. These figures appear to show a return to form and are back on par (if not slightly above) 2018’s statistics, which is very encouraging news for the industry.”

Posted on

London hotel rates up 2.6 per cent in November, finds HotStats

London hotels saw a 2.6 per cent increase in average room rate in November, according to the latest data from HotStats.

Rates increased year-on-year in the capital to £186.53 during the month, with occupancy down by 1.5 percentage points to 82.3 per cent.

Across the United Kingdom as a whole, occupancy was 78.5 per cent and average room rate was £123.43 in November.

A spokesperson for HotStats said: “Revenue growth hasn’t been an issue for UK hoteliers this year. It’s driving profit that has them frustrated.

“In a tale that is becoming all too common for the region, RevPAR (revenue per available room) at UK hotels was up in November, but profit against the same time last year was negative. RevPAR grew slightly 0.3 per cent year-on-year, while GOPPAR (gross operating profit per available room) was down 1.8 per cent year-on-year, illustrating the sometimes incongruous relationship between revenue and profit.”

The divergent revenue and profit picture across the UK in November was also seen in Birmingham, where both RevPAR and TRevPAR (total revenue per available room) were up year-on-year, 3.6 per cent and 1.1 per cent, respectively, against a resulting year-on-year decrease in GOPPAR of 1.5 per cent.

Occupancy in the city was higher than in London, at 83.6 per cent, with average room rate sitting at £94.27, almost half that of the capital.

In mainland Europe, hotels are generating revenue and keeping more of it. November marked the third consecutive month of year-over-year GOPPAR gains for hotels in the region.

GOPPAR was up 4.8 per cent in the month over the same time last year, but is still down 1.3 per cent year-to date, indicative of a previously listless profit performance, despite RevPAR that is up 1.2 per cent.

In November, RevPAR was up 4.2 per cent year-on-year, buoyed by a 1.9 per cent increase in average rate and a 1.6-percentage-point uptick in occupancy to 72.5 per cent.

Posted on

Accor announces opening of two Leicester hotels

The hotels are owned by Charles Street Buildings Group and operated by Interstate Hotels and Resorts, which is also an existing Accor partner with multiple hotels across the UK and Europe.

Hospitality group, Accor, has announced the opening of two new hotels in Leicester.

Novotel Leicester and Adagio Leicester Aparthotel will open its doors on 16 January 2020.

The 10-storey Novotel Leicester features 154 guest rooms including executive suites, meeting spaces, a gym and a ground-floor feature bar and restaurant.

The six-storey Adagio Leicester Aparthotel is opening next door to the Novotel with 98 apartments consisting of two person studios and one-bedroom apartments for up to four people.

Each room is equipped with a fully fitted kitchen and housekeeping services are also available.

The hotels are owned by Charles Street Buildings Group and operated by Interstate Hotels and Resorts, which is also an existing Accor partner with multiple hotels across the UK and Europe.

Speaking of the new openings, Thomas Dubaere, COO Accor Northern Europe, said: “I am delighted to be opening both Novotel Leicester and Adagio Leicester in such a prime city location. We have worked closely with the developer of this property to deliver a very high quality building which will bring significant benefits to the city and visitors.”

Karim Malak, CEO Aparthotels Adagio added: “Adagio Leicester is our fifth property in the UK and our second one centrally located in the Midlands region joining the Adagio in Birmingham. We are delighted to partner with Interstate on this dual brand site, in the heart of such a great city.

“The market for apart-hotels in the UK is growing and we are very excited to continue our expansion plans, with other openings scheduled in London and Glasgow over the next couple of years.”

Posted on

Andaz Dubai the Palm opens to first guests

Hyatt Hotels Corporation has welcomed the official opening of Andaz Dubai the Palm.

Joining Andaz hotels in top destinations around the world, the latest addition marks the first Andaz-branded hotel in Dubai and the second in the United Arab Emirates, following the opening of Andaz Capital Gate, Abu Dhabi in 2018.

Andaz, Hyatt’s luxury lifestyle brand, is rooted in local culture, immersing guests in elevated sensory experiences that celebrate the uniqueness of each property and its surroundings.

Located in the heart of Palm Jumeirah, the hotel rests on the world’s most iconic man-made island and offers travellers inspiring local programming, reflecting Dubai’s rich culture and heritage.

Andaz Dubai the Palm gives guests access to a private beach, as well as to several of Dubai’s attractions, including the Nakheel Mall, Dubai Mall, Dubai Marina, Jumeirah Beach and Mall of the Emirates.

“The bustling Palm Jumeirah island serves as the ideal location for guests to immerse themselves in the sights and sounds of Dubai,” said Kifah Bin Hussein, general manager, Andaz Dubai The Palm.

“The hotel is created for the inquisitive traveller.

“Set in a vicinity known for luxury and exclusivity, Andaz Dubai the Palm reflects the city’s eclectic style, showcased through local artist exhibitions and unique culinary offerings.”

Encompassing 217 guestrooms, including 34 suites, and 116 residences, the property incorporates the sights, scents and textures of Dubai into every aspect of the room design.

The ideal space to relax, unwind and entertain, the guestrooms are inspired by the Emirati culture with bespoke artwork and luxury amenities.

The hotel features 31 Andaz Suites, one Terrace Suite, one Prince Suite and one Royal Suite, each made with modern, minimalistic interiors and fitted with premium amenities, including separate living and dining areas, a terrace, a rain shower and a deep soaking tub.

Posted on

November London room rates rise as occupancies drop

Room rates in London continued to rise during November, but occupancies were slightly down, according to the latest preliminary figures from data company STR.

Average daily rate (ADR) and revenue per available room (revpar) increased by 1.6% to £158.94 and 1.3% to £136.43 respectively compared to the same month in 2018, while occupancy dropped 0.4% to 85.8%.

The ADR and revpar levels were said to be the highest for any November in STR’s records for the capital.

The CBI annual conference on 18 November helped drive performance, with revpar increasing by 20.2% that day.

A 2.1% increase in new rooms was slightly ahead of the 1.8% rise in demand.

STR will release its full November results later this month.

Posted on

Marriott International plans luxury expansion

Marriott International has announced plans to open more than 30 new luxury properties across the globe in 2020 through its portfolio of high-end brands.

The group will utilise its Ritz-Carlton, Ritz-Carlton Reserve, St Regis Hotels & Resorts, W Hotels, Luxury Collection, Edition, JW Marriott and Bvlgari brands to grow its presence in the luxury space, saying the move is in response to the growing trend of ‘transformative travel’.

Ritz-Carlton will open properties in Morocco, Japan, Mexico City, Arizona and China, while its hotel in South Beach, Florida is in the final stages of a complete refurbishment. It also expects to launch the Ritz-Carlton Yacht Collection in June 2020.

Meanwhile, St Regis will introduce hotels in Cairo, Mexico and Dubai and W Hotels will see openings in Nashville, Philadelphia, Toronto, Chengdu, Melbourne, Milan and Rome.

Also in 2020 will be the openings of Edition properties in Reykjavik, Tokyo and Dubai, as well as Luxury Collection hotels in Nashville, Budapest and Hobart in Australia.

Lastly, JW Marriott plans to grow its portfolio to 115 hotels by 2022, with properties set to open in Savannah (Georgia), Orlando and Anaheim, as well as Istanbul, Danang, Nara (Japan), Muscat and Monterrey (Mexico) over the next year.

As a whole, Marriott International has more than 185 luxury properties in its signed development pipeline that could add more than 15 new countries and territories to its portfolio. The group has taken a particular focus in Africa and the Middle East across all of its brands this year, with 19 hotels added.

Tina Edmundson, global brand officer and luxury portfolio leader at Marriott International, said: “Across our luxury brands portfolio, we will continue to incubate innovation and apply fresh thinking, both at the brand level and across our individual hotels, as we seek to be future forward, push boundaries and continue to raise the bar by creating new, unexpected and enriching guest experiences.”

Tony Capuano, EVP and global chief development officer, added: “Our plan to open more than 30 luxury properties in 2020 – an average of about three exciting new hotels per month – speaks to the remarkable momentum that brands such as St Regis, the Ritz-Carlton and Edition have with affluent travellers, our Marriott Bonvoy members and hotel developers around the world. Each year, our luxury portfolio continues to grow in both quality and quantity in strategic destinations around the world.”

Posted on

Tips for Greener Meetings

Sustainability is getting more and more important when planning an event or a meeting. Every little change can make a big difference in the carbon footprint of events.

Aranka Sarkozi, Event Consultant from Trinity Event Solutions, shares her 4 top tips for greener meetings:

  1. Pick a Green Venue:  Choosing an eco-friendly venue or hotel, with modern systems and technology will improve your event’s carbon footprint. CSR policies are getting really important, when it comes to making the decision.
  2. Locally sourced food: Logistic is one of the biggest contributors to air pollution. By choosing local food and drinks can reduce this. Also, locally sourced foods are tastier and fresher.
  3. Leftover food: We all know that there is always some leftover food after buffet lunches and refreshment breaks. Choose a venue, which has partnership with local charities. Donate the leftover food to them.
  4. Sustainable activities:  Take your team out for an outdoor activity. Organise planting trees or cleaning beaches. It can give an extra boost to event sustainability.