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Conflicting Quangos Provide Little Support for the Hospitality Industry

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Conflicting Quangos Provide Little Support for the Hospitality Industry March/AprilMay/June 20082008 For details of over 850 properties for sale or to let nationwide visit Page 8 Page 10 Page 19 Page 24 Register Close Advance 16 prime 18 for Investments notice town managed Fleurets’ – nine centre houses for Buyer Alert freeholds sites sale Conflicting quangos provide little support for the hospitality industry Bob Cotton Chief Executive, British Hospitality Association The government tourism, for which they are spent over responsible in their region? With £167bn on dramatic – and incomprehensible – more than 900 differences in the level of support quangos in and funding for tourism by each 2007 – up from RDA, what remains is confusion £79bn three and lack of coordination. It is years previously. claimed that RDAs spend some Even in the last £50m every year on promoting year alone, 30 new ones have been tourism, both domestically and introduced. Out of the total, £4.6bn overseas, yet this is surely what was spent by the Department of VisitEngland and VisitBritain have Culture, Media and Sport though been set up to do, as well. precious little of this was spent on tourism. Indeed, of the quangos for Why the duplication? Why is the which the DCMS is responsible, south-west competing against the VisitBritain’s grant is now being north-east, for example, to attract reduced by 20 per cent after eight domestic visitors when a co- years in which the level of funding ordinated England-wide campaign stayed the same – an effective cut, we have to deal with. There are regulatory interest in the industry, by VisitEngland would have far taking inflation into account. Not many more, ranging from the nine some more directly than others. greater impact and achieve far more much support there. Regional Development Agencies to success? Why not put all the the Food Standards Agency, from What benefit has the industry available funding into one basket, so In the tourism and hospitality arena, the Health and Safety Executive to gained from all this effort and that the two central organisations it’s not just VisitBritain – whose English Heritage the School Food expenditure? In tourism, very little. can promote the country coherently purpose and objectives are well Trust. These are just a small For example, what benefits have known and well supported – that selection of those that have a the RDAs brought to bear on continued on page 6 Bar Sport to take advantage of current climate Sports bar operator, Bar Sport, is Murray, who owns and operates the “actively looking to take advantage four sites, claims that, “If you of the current economic climate,” understand today’s opportunities according to owner Scott Murray. and your business model is right, Bar Sport was founded by Scott now is the time to grab the market Murray; a former amateur boxing aggressively and implement growth champion from the Midlands. In plans.” 1998 Scott opened the first of the Bar Sport concepts in Cannock, “We’ve spent a great deal of time before adding sites at Rugby, Walsall and most recently, Loughborough. continued on page 6 Hotels 11 Restaurants 17 Pubs 23 Leisure 47 Ŕ:LWK\RXIURPVWDUWWRƂQLVKŕ “Other agents farm out instructions to support staff but when market appraisal there and then - and advice on marketing you deal with Fleurets and I’m your agent, then I’ll take you I\[0»SSVUS`[HRLVUHWYVWLY[`0ÄYTS`ILSPL]L0JHUZLSS through the whole process. I’ll start by asking questions about your property and your business. Before a visit I’ll >LILSPL]L[OH[V\YTHYRL[PUNYLZV\YJLZPUJS\KPUNÅL\YL[ZJVT prepare a pack of comparable sales in your area: there’s no and On market our listings paper - are valuable tools for bigger database of leisure and hospitality sales and rentals marketing your property. If it’s the right thing to do, we can in the UK. HWWYVHJOWV[LU[PHSI\`LYZJVUÄKLU[PHSS`0»TOLYL[VHK]PZL you through the whole process, including liaising with your When I come and see you, we’ll look over the property and solicitor, once the right buyer has been found. I don’t stop discuss your business and accounts. I can’t have too full an working for you until your sale has completed.” understanding of your priorities and the opportunities for the property. With all this information, I’ll be able to give you my Lesley Watmough, Manchester London ; SVUKVU'ÅL\YL[ZJVT North West ; THUJOLZ[LY'ÅL\YL[ZJVT North T01132340304 SLLKZ'ÅL\YL[ZJVT Midlands ; IPYTPUNOHT'ÅL\YL[ZJVT West & South Wales T01179238090 IYPZ[VS'ÅL\YL[ZJVT South ; IYPNO[VU'ÅL\YL[ZJVT East Anglia ; Z\KI\Y`'ÅL\YL[ZJVT ÅL\YL[ZJVT On market | May/June 2008 3 Market commentary In this Can’t see the issue opportunity Market commentary for the gloom? Simon Hall Director, Fleurets North Hotel performance 4 From tenant to owner 4 Fleurets’ promotions 5 ‘Lifestyle Shifters’ 5 John Torode opens new restaurant 6 Confidential v open marketing 7 Fleurets launch new website 8 Who’s buying hotels? 9 To sell or let? 9 Advance notice – nine freeholds 10 Hotels open for business? 11 Hotels – profit or rent? 11 Many restaurants prospering! 17 With so much negative press over Are closed pubs the course of the last 9 months or so, it is understandable why so a loss? 23 many operators seem to be consumed with navel gazing. But corporate operators and Property private individuals alike should not be blind to the great opportunities Hotels 12 that exist in today’s market place for the people who can perform. Restaurants 18 Pubs 24 For years, individuals have largely been unable to secure Leisure 47 the best sites because the deeper pockets of the corporate world would beat them to it and out bid them. Many corporate operators have also been frustrated as others have cranked up the price/rent to secure a site (actions which some are now paying the price for). But now, more than at pretty much any time in the last 15 years, it is a buyers market and opportunities are a plenty. From hotels and restaurants to high street and community pubs, there are great deals to be had for all purchasers. Fleurets On market Published bi-monthly by Fleurets Ltd. Yes there is uncertainty in the market, but there has 4 Roger Street, London WC1N 2JX always been uncertainty, that is what operating a Enquiries: Sue Harris business is all about; risk and reward. Previously we have T 020 7280 4700 had risk/uncertainty about new competition and/or a E [email protected] down turn in the economy. Now we have the uncertainty Advertising: Paul Endersby of when the economy will pick up (as certainly it will). The T 01444 400062 danger is that if opportunists leave it too late, they will try E [email protected] to enter the market again when everybody else does, Website: and sites will dry up. fleurets.com/onmarket © 2008 Fleurets Ltd. Perhaps now is the time to buy and expand when the opportunities are there to do so. 4 On market | May/June 2008 Market commentary Hotel performance Paul Hardwick Divisional Director, Fleurets London HotStats, Rates however increased, both in overseas residents’ visits to the UK regarding international travel and produced by London and provincially, and as a in 2007, not seasonally adjusted, ‘carbon footprints’, this is likely to TRI Hospitality result UK Room Revpar achieved increased by only 1% on the increase over coming years, which Consulting, 4.7% growth, improving achievable previous year. This compares with should have a positive impact on UK provide key gross operating profits. Overall, the 9% increase experienced in hotel performance. performance these figures are a little gloomier 2006, 8% in 2005 and 12.3% in statistics for than those published for UK Hotels 2004. The number of visitors from Putting aside for the moment the a sample of for the 12 months to December North America fell by circa 11%, much publicised doom and gloom chain hotels. 2007, which show UK occupancy at although those from Europe relating to factors such as the ‘credit A summary of the published figures circa 75%, Room Rates at £88.20 increased by circa 5%. Whilst these crunch’, reduced consumer for February 2008 is set out below. and Room Revpar at £66.51, figures show a distinct slow down in spending, declining residential although February is considered by growth in visitor numbers, the total values, recession, etc. what do the Occupancy rates for chain hotels in many to be one of the worst trading number of visits in 2007 (32,880) simple facts set out above tell us? London showed growth compared periods of the year. was a record, some 36% higher with the same month in the previous than in 2002. Furthermore, domestic UK visitor numbers are continuing to year, although a decline was According to the Office of National tourism should not be forgotten as, increase, although growth is slower experienced provincially. Room Statistics, the total number of given environmental concerns than has previously been the case. The number of visitors from North London Provincial UK America has fallen, but visitors from elsewhere, particularly Europe, have 2007 2008 Change 2007 2008 Change 2007 2008 Change risen. Domestic tourism is likely to increase. Hotel performance is still in Occupancy 77.9% 78.5% 0.6 Pts 69.2% 68.8% -0.4 Pts 72.1% 72.1% 0.0 Pts growth, albeit at a slower rate that is Room Rate £107.05 £114.54 7.0% £70.97 £72.74 2.5% £84.21 £88.23 4.8% room rate, not occupancy, driven.
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