Category: Analysis

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BMA House continues to develop hybrid and digital offering

As part of ongoing investment in the services most needed by clients, BMA House’s expert technicians have created a range of hybrid and digital event packages that reflect ongoing changes in the corporate and association meeting industry. These upgrades will ensure BMA House’s place as a leading London hybrid venue.

BMA’s flagship space, the Great Hall, is currently undergoing refurbishment that includes a fully equipped Hybrid Virtual Studio. A bespoke, custom-build to fit the Great Hall, the Studio is one of a kind and includes a prominent 20×10 green screen, 4 x PTZ HD camera set-up, streaming PC, VMix 4k Pro Software, relay monitors and professional lighting.

Including options for webcasting, breakouts, speaker only conferences and exhibitor/sponsor packages, the offering reflects both the challenges presented by COVID-19 and the future needs of event organisers.

Highlights from the packages include:

  • Webcasting – fully branded live streaming platform with up to 2,000 viewing hours of content. Created using professional cameras and sound suite managed by two technicians.
  • Fully Equipped TV Studio Layout including – Interview/chat style set up, sales or product launches, conferences/meetings, AGM’s etc. All with the ability to bring in remote guests to feature in the event.
  • Fully Virtual – Including a fully brandable Teams/Teams live solution and GotoWebinar platform
  • Dedicated technical support – taking the pressure off event organisers to ensure a smooth-running hybrid event from start to finish.
  • Breakout sessions – available direct from main sessions or via bespoke joining links. Full presentation setup with Q&A and interaction for up to 250 delegates.
  • Exhibitor and Sponsor spotlights – interactive demonstrations, virtual pitches and scheduled Q&A sessions. Run live or created in advance by professional film and edit teams.
  • Fully digital meetings – facilitated by BMA’s technical experts and capable of hosting virtual events for up to 2,000, this option takes away the hassle and challenges of running a digital event, allowing organisers to focus on the content.

Home to the British Medical Association since 1925, the sustainable venue boasts 22 unique and versatile spaces for up to 320 (without social distancing), including 11 purpose-built meeting rooms, all fitted with cutting edge AV technology.

Sustainability is a way of life for the team at BMA House, adopting green initiatives is essential, not only for the venue but also for clients, suppliers and events. As part of an ongoing drive to ensure event spaces provide top of the range technology, BMA House will also guarantee this is carried out in the most sustainable way, keeping a delegate’s carbon footprint as low as possible. In essence, BMA House is delivering the perfect balance between sustainability and technology.

Digital and hybrid solutions offer a new take on the concept of sustainable events. Digital only events have a far lower impact on the world as travel decreases. In addition, hybrid events allow event planners to market to a wider audience, bringing in more people both domestically and internationally for (relatively) little cost, helping to increase attendee numbers on the day and create an overall more engaging event.

For more information about BMA House, its meeting rooms and what it can offer for your your events click here.

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London RevPAR growth softens

Regional performance continues to deteriorate as London RevPAR growth is softening

According to the Q4 2019 UK Hotel Market Tracker London recorded RevPAR growth of 0.9% for the final quarter of the decade. Report published by AlixPartners, STR and HVS,

Whilst these figures are encouraging, hoteliers will be keeping a close eye on softening occupancy, especially given active pipeline levels above 10%.

Regional RevPAR declined 2.7% in Q4. The regions posted a decline of 1.9% for the full year 2019, marking the first annual decline since 2015.

Transaction volumes were 19% down in 2019, as increased portfolio activity was more than offset by a steep decline in single assets sales.

Transactions are up in Q4 2019 and with greater political certainty, investors are likely to be cautiously optimistic about a resurgence in activity heading into 2020.

Click here for the full report.

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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.”

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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.”

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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.”

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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.

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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.

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BVEP delivers pre-election manifesto for Britain’s £70bn events industry

The Business Visits and Events Partnership (BVEP) has published a report ‘Events Deliver Growth, Jobs and Opportunities. A Manifesto for Britain’s Events Industry’, which illustrates the sector’s contribution to the country’s economy ahead of the upcoming General Election on 12 December 2019.

The manifesto sets out the value of Britain’s events industry, which currently stands at £70bn through direct spend and accounts for over 50% of spend in the UK visitor economy. The events sector, both business and leisure, is estimated to now provide more than 700,000 jobs across Britain.

Simon Hughes, vice chair, BVEP, said: “Our starting point is one of significant economic impact, expert delivery of complex and creative events and active support from government departments that recognise the importance of establishing Britain as the destination of choice for hosting events.”

The document outlines five key areas to help position Britain as the leading European country for staging events including: working together to enhance the UK’s position as a leading European country for hosting events, creating a more competitive tax regime, supporting the industry in driving forward its skills agenda, avoiding greater regulation, growing infrastructure, enabling greater access and increasing investment.

Hughes continued: “In order to deliver this manifesto, we need more collaboration, less regulation and more investment in infrastructure on a national, regional and local level. All of these areas align with many of the requests from across different business sectors and are based on the proven success of Britain’s Event industry to deliver opportunities for great careers, real economic benefits and outstanding creative solutions and experiences.”

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Former Brexit day sees steep decline in London hotel performance

STR have released preliminary performance figures suggesting that the Brexit day that never was saw a steep decline in occupancy and revenue per available room (revpar) rates across London hotels.

Occupancy and revpar fell by 11.2% and 11.7% respectively on 31 October, the Brexit deadline until the date for the UK’s departure from the EU was moved until 31 January 2020.

The performance of London hotel across the rest of the month showed a 1.9% drop in occupancy to 87.6%, while average daily rate increased by 1.7% to £162.07 and revpar was largely flat, down 0.3% to £141.97.

The supply of new rooms to the market was up by 1.6%, ahead of a 0.3% decrease in demand from guests.

STR will release the full results for October later this month.

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Most competitive convention destination revealed by ICCA

Competitive Index 2019 for global cities hosting meetings and events ranks them by features such as infrastructure and costs.

Paris has retained the top spot in ICCA’s rankings of the most competitive destinations for international conventions. 

Barcelona has moved up one place from its 2018 ranking to second place, while Singapore has jumped three places from sixth to third. Washington has gone the other direction, dropping from second to seventh place.  

ICCA has worked with convention industry consulting firm GainingEdge on the second annual ‘Competitive Index’ of international convention destinations. This year’s edition extends the listing to the world’s top 103 cities – those which have hosted 82 or more international conventions over the past three years as reported by ICCA. 

This year’s report also includes a ‘fair share’ analysis of a destination’s business levels. 

“We think this analysis will help destinations to gain insights into where they are and whether they should be in market share building mode, or market share protection mode,” said GainingEdge CEO, Jon Sivertson. 

“If you are below fair share there are probably reasons for that. For instance, if your competitors have better financed bureaus, it provides you with a business case for increased resources. If you are above fair share, the message should be that you need to avoid a downside risk. You are only there because you are taking some of your competitors’ share, and if they get it back, you lose.”

Most competitive global destinations for conventions

CityScore
1Paris741.4
2Barcelona708.8
3Singapore706.8
4Tokyo694.1
5New York691.2
6Beijing672.2
7Washington DC668.2
8San Francisco664.6
9Boston661.3
10Chicago660.9
11Hong Kong653.4
12Kuala Lumpur647.7
13Berlin646.6
14Toronto642.8
15Amsterdam641.4
16London635.4
17Istanbul635
18Bangkok627.3
19Milan615.2
20Seoul604.3
21Madrid601.5
22Frankfurt600.4
23Shanghai600.2
24Vienna599.6
25 Chinese Taipei 596.1

(The full index covers 103 international cities)

The index compares the strength destinations by assessing features such as infrastructure (meeting venues, hotel stock and facility package, international accessibility and logistics), competitive factors (scientific community strengths, destination appeal and costs), as well as macro indicators (market size, economic strength, business environment, and social conditions).

You can download the full ICCA report here.