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editor’s introduction
Editor’s introduction
by Graeme Aymer
Editor’s Introduction: Xyxyxyxyxt
It’s not been a bad year for the UK branded hotel industry, at least if you’re not situated in Nottingham. According
to Deloitte’s first HotelBenchmark survey of 2007, the Robin Hood’s city saw its annual RevPAR fall by 5.2%
in 2006. In contrast, London’s RevPAR was nothing short of ironclad, weighing in at a lusty 16.8% increase over
2005; unsurprising in some ways, given that year saw the Capital subject to terrorist attack. But Aberdeen also
witnessed impressive RevPAR growth, at 15.1%. Growth in the regional market as a whole came in at 4.4%, marking
the third consecutive year of growth.
And so we come to 2007. What’s in store? It’s impossible to say, but looking back at 2006, we can offer a number
of considered guesses, and that’s where this guide comes in. The intention is to divine the future by observing
what happened most recently.
Perhaps the easiest trend, then, to flush out is the environment. Even George W. Bush has decided that what the
world needs now is less exhaust fumes from cars. From the Hot Concepts examination of Starwood sustainability
brand 1 Hotels and Resorts, through Guy Parson’s comment on behalf of Travelodge, and the feature on the
environment, it’s fair to say this will be one of the issues of the year.
Other changes include Real Estate Investment Trusts, introduced to the UK at the start of the year. They’re big in
America, they’re big in Australia, but will they be big among Old World nations such as the UK? And, moreover,
will the UK hotel industry really benefit? On the case are Deloitte’s Peter Hackleton and CMS Cameron McKenna’s
Mark Nichols.
Hilton Area Vice President, in his outlook in the industry views section declares that the company plans to both
clearly define its brand, and to continue to “reduce asset ownership”. Again, these topics are tackled in more detail
by Nicola Mottam’s examination of branding and franchising (the latter, part of Hilton’s expansion plan) while
Bob Silk and Tim Helliwell of Barclays’ Hotel Team tackle sale and leaseback/manageback.
Now, when it comes to passing legislation, one might say that the government is less George Best and more Peter
Crouch. It is awkward, bemusing, not particularly pretty, sometimes fails spectacularly to pull off some rather
fancy moves, but is often effective when you least expect it.
March 2007 Hotel Report Guide to UK Hotels l © William Reed Publishing 4