Category: News

Success Stories – In Conversation with Tom Oakden

Posted on by Guy Lean

Tom Oakden, founder of Hilltop Hospitality Advisors, has built a remarkable career in hospitality investment, drawing on over twenty years of experience across the global market. His journey has been shaped by a deep understanding of the industry, with a strong focus on both the operational realities and strategic opportunities that define successful hotel investments.

One of Tom’s standout contributions to the sector is the creation of the Hilltop Tracker, a quarterly report that delves into hotel investment transactions across the UK and Europe. This year, Hospitality People Group is delighted to partner with Tom and Hilltop Hospitality to bring you the latest editions of the Tracker, offering valuable insights into single-asset hotel sales, portfolios, and platforms, along with a detailed look at emerging trends.

To celebrate this new partnership, we sat down with Tom for the latest instalment of our ‘Success Stories – In Conversation With…’ series. We explore his journey through the hospitality world, the mentors who helped shape his career, and his perspective on where hotel investment is heading in 2025. We’re excited to share this conversation with you and invite you to request your latest copy of the Tracker below.

Hospitality People Group: Let’s start by looking back at your career in hotel investment and advisory. What initially drew you to the hospitality sector?

Tom Oakden: It all started when I was 16 and doing some work experience. I had the benefit of a relative who worked with Richard Ellis Hotels in London, running the valuation team. That week, I had the opportunity to work with both the office team and the hotel team. When I went out on site with the office team, we measured up a fairly standard office building, it wasn’t particularly inspiring. Then when I joined the hotels team for an inspection of a building that was going to be reconverted into a hotel we met with the president of Conrad Hilton Hotels, and suddenly, I was walking around this building, imagining what it could become. That experience really hooked me.

I’ve always been fascinated by the dynamism of this industry. Hotels are not just real estate. They are living, breathing businesses. The investment, operational, and branding aspects all intertwine, making it an exciting space to work in. Every hotel tells a story, and working with owners and investors to shape those stories is what keeps things interesting.

Hospitality People Group: Were there any particular mentors or influences that played a pivotal role in shaping your career?

Tom Oakden: Absolutely. At JLL, I had the privilege of working with the late Nick Marsh. He had a strong investment background but also understood the lifestyle element of the hospitality sector. He taught me the importance of working hard but also enjoying the process. It wasn’t just about numbers; it was about understanding the industry, networking, and seeing the bigger picture.

I also learned a lot from working in Asia, where decision-making can be very diff erent from Europe. An investor there might be just as likely to purchase a hotel based on personal affinity as on pure financial metrics. That global perspective has been invaluable in helping me navigate the personal and emotional element that can pop up in various investment deals.

Hospitality People Group: What inspired you to establish Hilltop Hospitality Advisors, and how does it differentiate itself in the hospitality investment space?

Tom Oakden: Hilltop Hospitality was born in 2019 when I had the opportunity to work with a family office from Thailand looking to invest in the UK. They wanted someone on the ground to ensure they didn’t miss out on opportunities, and that gave me the impetus to start my own advisory firm. The idea was to create a more agile and bespoke advisory service tailored to individual client needs.

The pandemic presented unexpected challenges, but I found ways to adapt. One of the key things that emerged from that time was the Hilltop Tracker, a comprehensive analysis of hotel investment trends. It’s become a valuable tool for my network, offering real insights into market activity based on hard data. Hilltop Hospitality differentiates itself by being nimble, leveraging this deep industry knowledge, and maintaining strong relationships across investors, operators, and brands.

Hotel Investment Outlook for 2025

Hospitality People Group: Given the current economic landscape, what trends do you anticipate will shape hotel investment in the UK and Europe in 2025?

Tom Oakden: 2024 was a strong year for hotel investments, with volumes up around 30% compared to the previous year. However, the second half of the year saw a slowdown, which could have been due to deal fatigue or just a lack of the right assets coming to market.

Of course, there are a few unknowns and uncertainties about cash flow in the UK, the challenges that we’re going to have with cost of living wage rising, national insurance etc, but fundamentally I think that the appetite for UK hotels as well as European hotels will remain strong.

We’re certainly seeing more investors wanting to invest in cities now that they can feel the corporate markets are back. We saw about 75% of all transactions in 2024 were for urban properties, up from about 68% in 2023. This renewed confidence is driving increased interest in those assets.

I’m not really over-exaggerating when I say there’s probably around £10 billion worth of assets on the market right now. 60-70% of that’s probably big platform, brand stuff and perhaps 2 billion or so is actual single assets, and we’re probably going to see more to come.

Hospitality People Group: How does this affect competition among investors?

Tom Oakden: There won’t necessarily be the longest line ever for these, but there will be sufficient interest to create competitive bidding. Investors are still facing some bid/ask mismatches, but if and when economic conditions become a bit more clear, I anticipate transaction volume should improve on 2024 levels. Stock levels are high and the willingness to transact is improving. In 2025 we have already seen some significant single asset and platform deals to kick start the year.

Hospitality People Group: Alternative hospitality models like serviced apartments and extended stays have been growing. How do you see their role evolving?

Tom Oakden: Serviced apartments performed exceptionally well during the pandemic, and they continue to be attractive. However, their growth is somewhat constrained by the need for larger units compared to standard hotel rooms. If you’re converting a hotel, for example, you might have to reduce the number of keys, which can impact pricing competitiveness.

That said, there’s strong demand for long-stay accommodation, particularly in prime city locations. The key to further growth will be strategic acquisitions—either existing serviced apartments or adaptable office buildings for conversion.

Hospitality People Group: ESG considerations are becoming increasingly important in real estate. How are sustainability factors influencing hotel acquisitions and development strategies?

Tom Oakden: ESG is crucial, but its implementation varies. Investors looking at existing hotels focus on guest-facing upgrades rather than back-of-house improvements. If they only plan to own the asset for five years, they may prioritise cosmetic changes over long-term sustainability investments.

However, new developments are a different story. Here, ESG integration is a no-brainer. Developers can secure favourable financing terms, access grants, and future-proof their assets against upcoming regulations. The challenge is that while everyone acknowledges the importance of ESG, shorter-term financial considerations often take precedence.

Opportunities & Challenges in the Hospitality Industry

Hospitality People Group: Technology is continuing to transform hotel operations. How can investors and operators best leverage this shift?

Tom Oakden: The whole question of technology is heavily discussed in the industry, and we’re seeing more operators putting technologies into practice to reduce reliance on employees. At a basic level, if you consider the traditional hospitality approach, you’re greeted at a reception desk by someone, giving you that warm feeling of being looked after, but many emerging operators, especially those catering to millennials and Gen Z, don’t see that as essential. They just need a digital key that gets them through the door and into their room. There’s usually a number to call if support is needed, but most information about the local area—where to eat, drink, or shop—is web based.

While this enhances the speed and efficiency of accessing information, it doesn’t replace the human touch, which remains essential in hospitality, so there really needs to be a balance. However, all this technology should benefit both the consumer and the investor by creating more efficient, profitable, and enjoyable hospitality experiences.

Hospitality People Group: How do you see the role of brands evolving in the hotel investment space?

Tom Oakden: We’re seeing more flexibility with branding. The dominance of traditional hotel management agreements is waning outside the luxury segment. Franchising has gained traction, allowing owner-operators to benefit from a brand’s distribution network while maintaining operational autonomy. I think the flexibility and potential for revenue growth that you can have with a franchise can be quite profound, but ultimately it’s about the number of guests you can get through the door and what you can save on OTA booking costs.

Soft brands are also playing a significant role, particularly in fragmented markets like Italy. They allow independent hotels to retain their unique character while tapping into a global reservation system. Investors are increasingly drawn to these models because they offer a hybrid approach, leveraging the power of the brand without losing control over the operation.

The January 2025 edition of the Hilltop Tracker highlights a strong 2024 for hotel investments, with transaction volumes growing by over 30% compared to 2023. Private equity emerged as the dominant buyer in terms of volume, while owner/operators led in the number of transactions. The report also notes a significant shift in investor behaviour, with real estate investment management businesses increasing their market share and sovereign wealth funds becoming net sellers after dominating in 2023.

If you haven’t received the latest edition of the Hilltop Tracker yet please get in touch.

Guy Lean
Tel: +44 20 8600 1180
Mob:+44 7813 009787
Email: [email protected]

Reflecting on 2024

Posted on by Katherine Wyles

As 2024 comes to an end, we’re taking a moment to reflect on our year at Hospitality People Group, that comprises of three distinct businesses that cater to the diverse needs of our clients: 

HPG Advisory Services: Delivering unparalleled executive search services for board, C-suite, and senior leadership roles, helping companies secure transformative leaders who drive success. 

Madison Mayfair: Renowned for its ability to find and attract top talent for even the most challenging roles, Madison Mayfair has earned its reputation as a global leader in talent acquisition for hospitality clients. 

FM Recruitment: Focused exclusively on the world of finance within hospitality, FM Recruitment specialises in sourcing finance professionals at all levels, ensuring businesses are equipped with the expertise they need. 

This article summarises some of our highlights from the past 12 months. Our mission is to partner with hospitality organisations to tackle their most pressing human capital challenges, whether through sourcing exceptional leadership, filling specialised roles, or providing strategic insights. This year, we’ve been proud to champion diversity, support businesses through economic shifts, and celebrate the resilience and innovation that define our industry. 

Championing Women in Hospitality
HPG is committed to championing women in the hospitality industry by fostering inclusivity, amplifying voices, and addressing systemic barriers. Through our partnerships with initiatives like Inspiring Women in Hospitality and events such as the Women in Hotels Brunch, we celebrate female achievements and create opportunities for networking and career advancement. Platforms like the Inspire Community and mentorship programs provide crucial support, enabling women to share experiences, gain guidance, and overcome challenges together. 

By advocating for flexible working arrangements, equitable pay, and leadership visibility, we aim to drive cultural change within the industry. These efforts, combined with professional development opportunities and a focus on showcasing diverse career pathways, aim to break down barriers and empower women to achieve their full potential, shaping a more inclusive and innovative hospitality sector. 

Networking and Insights
Trade events remain pivotal to our commitment to fostering industry innovation, collaboration, and the exchange of valuable insights. In 2024, we actively participated in key conferences such as the Caribbean Hotel & Resort Investment Summit (CHRIS) and the Future Hospitality Summit in Saudi Arabia, demonstrating its dedication to understanding emerging trends and engaging with global industry leaders. From exploring the transformation of all-inclusive resorts and branded residences at CHRIS to witnessing Saudi Arabia’s ambitious Vision 2030 and its ESG-focused mega-projects, we have stayed at the forefront of hospitality developments. 

These events provided a platform for us to connect with professionals worldwide, share expertise, and analyse critical industry trends. By attending and contributing to these conferences, we reinforced our position as a thought leader while bringing actionable insights to our clients, helping them navigate market shifts and capitalise on new opportunities. 

Adapting to Change
Throughout the year, we have consistently demonstrated our commitment to helping the hospitality industry navigate evolving challenges through forward-thinking strategies and insightful guidance. In 2024, the industry once again faced significant shifts, including increased salary thresholds for skilled workers, tightening budgets, and regulatory changes, all topped off with a budget that has proved especially challenging to the hospitality industry.  

Through detailed analyses such as “The Impact of Increased Salary Thresholds on the UK Hospitality Industry,” we highlighted the importance of upskilling domestic workers, enhancing workplace culture, and leveraging technological innovation to address workforce shortages. Similarly, at HOSPACE 2024, we emphasised bridging operational gaps with technology and training while fostering personalised recruitment strategies to align with organisational values. These efforts underscore our role in driving resilience and innovation, ensuring its clients remain competitive in a rapidly changing landscape. 

Hotel Investment Insights
In 2024, we actively tracked and analysed hotel investment trends, providing critical insights to help stakeholders navigate a dynamic and evolving market. As global uncertainties persisted, targeted investments in emerging markets and sustainable projects demonstrated significant returns. Our “Global Hospitality Investment Insights: Spring 2024” highlighted the growing emphasis on ESG factors, with investors recognising the dual benefits of sustainable practices for profitability and brand reputation. 

At the International Hospitality Investment Forum (IHIF) in Berlin, we observed a shift towards long-term strategic expansion, particularly in the Middle East and Mediterranean regions. The UK hotel sector also showcased resilience, with mid-year investment volumes reaching record levels, driven by strong domestic tourism and international interest. Through insights shared in reports and conferences, we supported the industry in adapting to challenges such as rising costs, geopolitical instability, and a constrained supply of quality assets, while championing opportunities for innovation, sustainability, and growth. 

Cultural Phenomena
A number of big events over the summer significantly impacted the hospitality industry in 2024, showcasing how businesses can harness these moments to drive growth and innovation. We explored the influence of Taylor Swift’s Eras Tour in “The Taylor Swift Effect”, highlighting the boost to local economies, with UK cities experiencing spikes in hotel occupancy, dining, and retail. Businesses seized the opportunity by offering creative, themed packages and experiences, such as bespoke cocktails, citywide trails, and employee engagement initiatives that enhanced customer satisfaction and loyalty. 

Similarly, in “Lessons in Leadership from a Summer of Sport”, we examined how strategies from sports, such as Gareth Southgate’s emphasis on teamwork at Euro 2024 and the British Cycling’s Olympic team’s focus on incremental improvements, can inspire hospitality leaders. The importance of preparing for large-scale events, empowering employees, and creating unique guest experiences was underscored as critical for capitalising on cultural moments. These insights reinforce the need for agility, innovation, and thoughtful engagement to ensure hospitality businesses maximise opportunities while fostering long-term growth and positive guest experiences. 

Conclusion
From championing women in hospitality and navigating economic shifts to analysing market trends and harnessing cultural phenomena, we have remained steadfast in its commitment to empowering businesses through tailored solutions and actionable insights. Our presence at key industry events, such as CHRIS, IHIF, and HOSPACE, reinforced our role as thought leaders, while our dedication to diversity, inclusion, and workforce development ensured our clients were equipped to adapt and thrive. 

We understand that success in the hospitality industry begins with its people. As we look ahead to 2025, we remain dedicated to delivering innovative strategies that support leadership, culture, and employee engagement.   

If you would like to discuss your people strategy further and explore how we can help you achieve your goals in the year to come, then please get in touch.   

 Guy Lean, Managing Director – Madison Mayfair  
+44 20 8 600 1180 / +44 7813 009787  / [email protected]   

Dan Akhtar, Managing Director – HPG Advisory Services 
+44 208 600 1166 / +44 7808 157796  / [email protected]   

Chris Denison Smith, Managing Director – FM Recruitment 
+44 20 8 600 1160 / +44 7775 711923  / [email protected]   

Andrea Shaw, Director – FM Recruitment 
+44 20 8 600 1160 / +44 7714 236469  / [email protected]   

 

Bridging the Gap – Insights from HOSPACE 2024

Posted on by Chris Denison Smith

As proud sponsors of HOSPA, we were delighted to attend HOSPACE 2024 at the Royal Lancaster London last week. Many of you may have already seen some of the event highlights, including UK Hospitality‘s Kate Nicholls in conversation with James Stagg of The Caterer and the Leader’s Panel discussion that closed the afternoon programme. For us, the day was more than just an opportunity to connect and network with industry leaders. It was a chance to reflect on the unique value we offer our clients. We understand that our role goes beyond simply filling vacant positions. Instead, we focus on working in partnership with our clients to support their overall people strategies, utilising our industry experience and insights offer additional value and drive meaningful results.

Design Thinking in Recruitment
We were particularly interested in the engaging fireside chat with Neil Stone of leapSTONE on “Innovation Through Strategic Design”. He provided a compelling analogy that really resonated with our own methodology. Neal challenged attendees to rethink conventional problem-solving: rather than simply building a bridge, first understand whether a bridge is truly the best solution for crossing the river. This mindset connects with our approach and reminds us of the old medical phrase “Prescription without diagnosis is malpractice.”

This ethos drives our work. By engaging deeply with clients to diagnose the root challenges—whether it’s high turnover, a lack of leadership diversity, or difficulties adapting to market changes— we ensure that solutions are both strategic and impactful. Our role is not just to connect businesses with candidates but to understand the overall challenges and help create lasting solutions.

Elevating the Recruitment Process
Another critical takeaway from HOSPACE was the importance of partnerships over transactional relationships. We understand how some businesses still use mass recruitment strategies, inviting hundreds of CVs without offering meaningful feedback or collaboration. While this transactional approach can potentially save some upfront costs (and of course we are slightly biased) it sacrifices the potential value that a strategic recruitment partner can bring.

We have often seen examples where companies can overwhelm their HR team with hundreds of CVs from multiple sources, including our carefully curated candidates. This can understandably lead to frustration and burn-out. By engaging directly with the team and fostering a trusting relationship, we can emphasise the benefits of a consultative partnership, where fewer but higher-quality candidates are presented with context and rationale. This collaboration ensures a much more effective process and inevitably results in a better cultural fit for the workplace.

Addressing Industry Challenges
Unsurprisingly, HOSPACE also highlighted several pressing challenges for the hospitality sector, including the recent budget, workplace culture and evolving regulations. These issues underscore not only the importance of a strong financial strategy, but the significance of a holistic people strategy. For example:

  • Budget: With minimum wage increases and changes to National Insurance rates and thresholds, many hospitality businesses face tightening margins. FM Recruitment helps clients navigate these complexities by identifying candidates who have a proven track record of driving efficiencies and innovation within their organisations.
  • Workplace Culture: As we have discussed in previous blogs, inclusion and workplace culture was again a key topic at HOSPACE, especially in the Prioritising People discussion and Kate Nicholls’ conversation. It is a topic that we are passionate about and work with clients to ensure that hires align with their values and contribute to a cohesive team environment.
  • Regulatory Changes: From the new tipping legislation to employment classifications, the regulatory landscape remains complex. Our industry expertise ensures that our clients are not only compliant but also well-positioned to adapt to these changes and any opportunities that may appear.

Personalisation
One of the standout themes at HOSPACE was personalisation. Discussions emphasised understanding customers on a deeper level—beyond the superficial perks of an upgraded room or complimentary champagne. As highlighted in the panel “Maximising Profit Potential Through Clever Marketing,” hospitality leaders stressed the importance of tailoring guest experiences by understanding the “why” behind their bookings. The same principle applies to recruitment: effective hiring requires more than just matching skills to job descriptions. It demands an understanding of the organisation’s culture, objectives, and challenges.

At FM Recruitment we adopt this approach by digging deeper into clients’ unique needs. For example, instead of simply providing a list of qualified candidates, we collaborate with clients to try and uncover the motivations and goals behind each hire. This ensures that every placement contributes to the client’s long-term success, not just immediate operational needs.

Value Beyond Recruitment
One of the most compelling insights from HOSPACE was the idea that service—both to guests and employees—should be a company’s guiding principle. By viewing recruitment as a service rather than a transaction, we help clients build stronger, more resilient teams. The goal is not just to fill vacancies but to support broader strategic objectives, such as:

  • Ensure a diverse leadership team
  • Reducing employee turnover
  • Improving employee engagement
  • Supporting long-term business growth

Building Bridges
Ultimately, our value proposition is about connection. Just as the hospitality industry seeks to create meaningful experiences for guests, we strive to create meaningful partnerships with clients. By making it our mission to understand each client’s unique set of challenges and opportunities, we can help build the bridge between problems and solutions, supporting businesses as they look to thrive in an ever-changing environment.

And as many of the insights from HOSPACE 2024 show, the hospitality industry’s future health depends heavily on its ability to innovate, personalise, and adapt to these challenges and opportunities. With a strategic partner like FM Recruitment, businesses can ensure that their people strategies are not just aligned with these goals but positioned to exceed them.

If you would like to discuss how FM Recruitment can support your people strategy, then please get in touch.

Chris Denison Smith, Managing Director
+44 20 8600 1160 / +44 7775 711923
[email protected]

Andrea Shaw, Director
+44 20 8600 1161 / +44 7714 236469
[email protected]

Tairona Lattanzi, Recruitment Consultant
+44 20 8600 1164
[email protected]

The Value of Hospitality Industry Trade Events 

Posted on by Dan Akhtar

With rising consumer expectations, advancements in technology, and the push for sustainability, staying ahead of the curve is crucial for anyone involved in the hospitality industry. One of the most effective ways to do this is by attending trade events and conferences.  

These industry gatherings provide professionals with an unparalleled platform to network, build their profile, expand their knowledge, and stay updated on the latest trends. From luxury hotels to independent restaurants, the insights gained at these events can shape the trajectory of businesses and professionals alike. 

With the Annual Hospitality Conference in Manchester having taken place earlier this week, many attendees and onlookers may be looking at the next opportunity attend such an event, whether it might be a little closer to home or a little more focussed on your specific area of interest.  

The next few months will see a plethora of Hospitality and Tourism conferences and events taking place across Europe and the Middle East, from UKHospitality’s Environmental Sustainability Seminar to the prestigious International Luxury Travel Market (ILTM) in Cannes. Each event brings unique value to attendees, helping them thrive in an increasingly competitive environment, and it is not too late to sign up and get those tickets booked. 

Why Trade Events Matter in the Hospitality Industry 

 Networking Opportunities
Trade events are invaluable for networking, enabling professionals to connect with peers, potential partners, and industry leaders. These interactions can lead to collaborations, partnerships, and business deals that can propel a company forward. For example, the World Travel Market (WTM) in London, taking place annually in November, is one of the most influential gatherings in the global travel and tourism industry.  

With representatives from travel companies, tourism boards, and hospitality providers worldwide, the WTM offers opportunities to forge lasting relationships and discuss future trends, making it an essential event for anyone looking to make their mark on the industry. 

For resort operators and residential leisure investors, the Resort & Residential Hospitality Forum (R&R) in Athens in November will provide a specialised platform to engage with stakeholders and experts in the resort and residential space. Establishing contacts in such niche markets can help businesses uncover investment opportunities or gain insights into emerging trends that can impact their future strategies. 

Building Knowledge and Gaining Insights
Attending trade shows is a prime opportunity to learn from industry experts and thought leaders. Events such as the Tourism Innovation Summit in Seville in October are designed to showcase how cutting-edge technology can revolutionise the travel experience. From sessions on smart destination management to talks about artificial intelligence in tourism, this event offers attendees the chance to stay ahead in an industry that is increasingly reliant on digital transformation.

At the Environmental Sustainability Seminar in the UK, climate change is becoming an ever-pressing issue for hoteliers and restaurateurs alike, who must adapt to greener practices. This seminar is a key opportunity to explore best practices and innovations designed to make the hospitality industry more sustainable. These insights can help businesses not only reduce their environmental impact but also appeal to eco-conscious consumers, a demographic that continues to grow in importance. 

Competitor Knowledge
Understanding what competitors are doing is crucial for maintaining a competitive edge. Trade events provide the perfect stage to observe and assess the latest products, services, and innovations that your competitors are offering. At the Hotel & Resort Innovation Expo at Excel London in October, hoteliers will get a first-hand look at cutting-edge technology designed to enhance customer experience. Whether it’s AI-driven guest services or the latest room automation technology, knowing what’s on the horizon can help businesses stay one step ahead. 

Similarly, at the The Restaurant Show, now part of the Food & Drink Expo taking place in April 2025 in Birmingham, restaurateurs will gain insights into the latest culinary trends, tech solutions, and operational strategies from leading industry experts. Understanding these trends early can empower businesses to implement changes that set them apart from competitors, giving them a significant advantage in the market. 

Industry Innovation
Innovation is the lifeblood of any industry, and trade events serve as a catalyst for new ideas and breakthrough technologies. The Independent Hotel Show, which takes place at Olympia London in October, focuses on boutique hoteliers and luxury establishments, offering a curated selection of the latest innovative products and services designed to elevate customer experience. For hoteliers seeking to distinguish themselves in a crowded market, this event is the perfect place to discover game-changing solutions. 

Another key event fostering innovation is the Italian Hospitality Investment Conference (Rome, October 2024), where the focus is on investment opportunities and trends in the hotel and real estate sectors. With a particular emphasis on innovation in hospitality investments, this is the first international conference exclusively dedicated to investments targeting hospitality in Italy. This is vital for anyone looking to stay informed on how new business models and investment strategies might apply to a region that promises significant opportunities.

Profile Building
For professionals looking to advance their careers, attending these events can be instrumental in building their personal profile. Speaking at panels, engaging in discussions, or even just attending sessions can raise your visibility within the industry.  

HOSPACE run by HOSPA (of which our brand, FM Recruitment are proud sponsors) takes place in November every year. As conference for senior professionals and host to an array of discussions and workshops from leading minds in the industry, offer the chance to establish yourself as a thought leader to address some of the key issues impacting the contemporary hospitality landscape, including sustainability, technology, wellness cyber security and career progression. 

Staying Ahead of Industry Trends
Trade events are where trends are born, making them essential for those looking to stay ahead in the fast-paced hospitality industry. The International Luxury Travel Market (ILTM) in Cannes taking place in December showcases the latest developments in luxury travel, from high-end destination offerings to personalized experiences. As luxury travel continues to be a key growth sector, keeping a finger on the pulse of new trends and consumer preferences is vital for anyone involved in high-end hospitality services.

The Current Hospitality Investment Landscape
The global hospitality investment landscape in 2024 is defined by recovery, growth, and innovation. After the challenges posed by the COVID-19 pandemic, the industry has seen a resurgence, with investment volumes outpacing pre-pandemic levels. According to JLL Research, global Revenue Per Available Room (RevPAR) in 2024 has exceeded 2019 figures by 12%, showcasing the robust recovery of the sector. 

Major investment deals in the first half of 2024, such as Blackstone’s acquisition of the Village Leisure portfolio for £850 million, highlight the renewed investor confidence in hospitality assets. Furthermore, there is a growing trend toward sustainable investments, with many investors prioritizing eco-friendly developments and wellness-focused properties, reflecting broader shifts in consumer preferences. 

Conclusion
The value of attending hospitality trade events cannot be overstated. These gatherings are more than just networking opportunities—they are platforms for learning, innovation, and growth. Whether it’s gaining insights into sustainable practices, learning about the latest technological innovations, or building your personal and business profile, attending these events can significantly impact your success in the hospitality industry. 

With the global hospitality industry continuing its upward trajectory, driven by strong investment activity and the adoption of innovative practices, staying engaged with industry events will be crucial for maintaining a competitive edge. Whether you’re attending to network, learn, or simply keep an eye on your competitors, these trade events in Q4 2024 offer valuable opportunities that no hospitality professional should miss. 

If you would like to discuss any of the above topics in more detail, please get in touch to arrange a chat. 

Dan Akhtar, Managing Director – HPG Advisory Services 
+44 208 600 1166 / +44 7808 157796 
[email protected]  

Image courtesy of hospace.org 

 

Navigating Budget Season in Hospitality: Essential Tips for Success

Posted on by Chris Denison Smith

As we enter the final third of 2024, hospitality businesses are preparing for one of the most crucial periods in their financial planning—budget season.  

This time of year is more than just about balancing books and setting targets; it’s an opportunity to align financial goals with market realities, ensure sustainability, and set the stage for future growth. Crafting a successful budget requires a combination of market research, strategic storytelling, effective communication, and the ability to adapt to feedback.  

Here’s our guide to help businesses navigate the complexities of budget season with confidence and precision. 

Market Research and Forecasting
A solid budget begins with a deep understanding of the market and future forecasts. In an industry where trends can shift rapidly due to economic changes, consumer behaviour, and global events, staying informed is essential. The hospitality sector is anticipated to grow at a rate of 5.5% over the next four years, driven by factors like sustainability, wellness tourism, and flexible bookings. Understanding these trends allows businesses to tailor their budgets to meet market demands, such as investing in sustainable practices or wellness amenities. 

Analysing Past Performance
Before looking ahead, it’s crucial to review past financial performances. Analysing year-over-year changes, identifying trends in different market segments, and assessing profit and loss can provide valuable insights. This data helps set realistic goals for the upcoming year and pinpoint areas needing increased investment or cost-cutting.  

Competitive Landscape
Understanding the competitive landscape is equally important. Analysing competitors’ strategies, pricing models, and market positioning can reveal opportunities and threats. This intelligence should be integrated into the budget to maintain competitiveness.  

Crafting a Strategic Narrative
A budget isn’t just a collection of numbers; it tells the story of the business’s past, present, and future. Crafting a narrative from these figures that resonates with stakeholders is key to aligning the budget with the company’s strategic objectives. Highlight successes, such as revenue increases from a new marketing strategy, and address challenges with clear plans for improvement. Align the budget with broader company goals, such as market expansion or sustainability initiatives, to ensure it drives the business forward.  

Presenting to Senior Leadership
Once the budget is crafted, presenting it to senior leadership is the next critical step and the approval of the budget often hinges on how well it’s communicated. This presentation should be concise and well-structured, focusing on key messages and high-level summaries. Senior leaders don’t have time to delve into the details, so it’s essential to highlight the most critical data points and how they align with the company’s strategic goals. Use visuals like charts and graphs to make complex information more accessible and engaging.

Handling Feedback
Receiving and incorporating feedback is a vital part of the budgeting process. Be prepared to answer questions and justify every figure. Feedback should be viewed as an opportunity to refine the budget, demonstrating responsiveness and a commitment to the business’s success. Document all feedback and changes made, as this record can be invaluable for future budget planning.  

Team Engagement
Budgeting isn’t just a top-down process; it involves the entire team. Engaging with team members ensures the budget reflects operational realities and builds a sense of ownership. Department heads can provide insights into specific needs or challenges, making the budget more realistic and achievable. Ensure everyone understands their role in the budget and how it aligns with the broader goals of the business. Providing training and support, such as financial literacy workshops, can enhance the overall quality of the budget. 

Conclusion
Budget season in the hospitality industry is more than a financial exercise; it’s a strategic process that sets the tone for the year ahead. By conducting thorough market research, crafting a compelling narrative, presenting effectively, and engaging with your team, you can create a budget that not only meets operational needs but also drives growth and innovation. As the industry evolves, those who approach budget season with diligence and foresight will be well-positioned to thrive. Embrace the challenge, and let budget season be a stepping stone to your business’s success. 

Hospitality People Group is dedicated to exploring all opportunities to provide insights and support our clients and their people strategies to create lasting value and positive experiences for their employees and guests.  

If you would like to discuss your people strategy further, then please get in touch.  

Chris Denison Smith, Managing Director – FM Recruitment 
+44 20 8 600 1160 / +44 7775 711923
[email protected]  

Andrea Shaw, Director – FM Recruitment 
+44 20 8 600 1160 / +44 7714 236469 
[email protected]  

Dan Akhtar, Managing Director – HPG Advisory Services 
+44 208 600 1166 / +44 7808 157796 
[email protected]  

Guy Lean, Managing Director – Madison Mayfair 
+44 20 8 600 1180 / +44 7813 009787 
[email protected]  

Lessons in Leadership from a Summer of Sport

Posted on by Guy Lean

As the summer of 2024 continues to showcase some remarkable sporting spectacles, there is much we can learn from the leadership styles and strategies seen in these high-performance environments.  

By analysing the approaches of prominent figures and teams, we hope to gain insights into creating a positive workplace culture, fostering team cohesion, and driving continuous improvement.  

This article explores these lessons through the examples of Gareth Southgate, the British Olympic Cycling team, the ‘Big Four’ in men’s tennis, the Jamaican Sprint team and Tiger Woods. 

Gareth Southgate: Leadership in Football
Gareth Southgate’s leadership of the England men’s football team was marked by humility, strategic planning, and strong team spirit.  

While expectations of success grew exponentially through his reign, Southgate transformed the team into a resilient and self-believing unit by integrating younger players and fostering camaraderie. While many fans look back wishing the team could have taken the final step and win a trophy, the workplace environment that Southgate was responsible for undoubtedly contributed to England’s consistently improved performance in major tournaments. 

Hospitality leaders can learn from Southgate’s emphasis on a clear vision and strategic planning. His focus on performance over results aligns with the industry’s need for consistent service standards.  

Furthermore, Southgate’s humility and prioritisation of collective success over individual ego resonates with the hospitality’s focus on teamwork. His inclusive approach, embracing diversity and giving ownership to team members, can inspire leaders to cultivate a culture of empowerment and innovation within their organisations. 

While some fans may still rue a missed opportunity, his successor will have a very solid platform from which to build for the future and bring football home at last. 

British Olympic Cycling Team: The Power of Marginal Gains
The British Cycling team’s success in earlier Olympic Games exemplifies meticulous improvement and a culture of excellence.  

Under leaders like Sir Dave Brailsford, the team adopted the ‘aggregation of marginal gains’ philosophy, focusing on small incremental improvements that collectively lead to significant achievements. This strategy resulted in a remarkable medal haul, particularly in the 2008 Beijing and 2012 London Olympics. 

Hospitality businesses can adopt a similar approach by encouraging guest feedback, acting on this feedback to refine processes, and examining every step of the customer journey in detail.  

Understanding your guests, empowering your employees and regularly tweaking and improving processes based on feedback will help deliver excellence consistently and can lead to substantial improvements in customer service, employee satisfaction, loyalty, and profitability. 

The ‘Big Four’ in Men’s Tennis: Comprehensive Support Systems
The legendary ‘Big Four’ in men’s tennis—Federer, Djokovic, Nadal, and Murray—have set new standards for athletic excellence and sportsmanship.  

While their dominance has ended through retirement or injury, their legacy will impact the sport for generations to come. Their success was partly due to a new era of comprehensive support structures, including specialised coaches, fitness trainers, physiotherapists, nutrition and mental health experts.  

The hospitality industry can learn from this model by investing in employee development and creating a supportive environment. Just as tennis players benefit from a holistic approach to performance, hospitality professionals can thrive in a workplace that nurtures their skills and well-being. Additionally, the sport’s commitment to inclusivity and community engagement offers a blueprint for hospitality services to better meet the diverse needs of their clientele, enhancing service excellence. 

Jamaican Sprint Team: Mentorship and Specialisation
The Jamaican Olympic Sprint teams’ dominance in athletics highlights the importance of mentorship, rigorous training, and a specialised approach. The presence of sprinting legends as mentors and a ‘long-to-short’ training philosophy have been key to nurturing young talent and ensuring peak performance. 

The ‘long-to-short’ training philosophy, central to Jamaican sprinting success, involves starting the training season with longer, endurance-building runs and gradually shifting to shorter, more intense sprints as competitions approach. This method builds a strong aerobic base initially, enhancing the athletes’ stamina and conditioning.  

As the training progresses, the focus shifts to speed and power, with shorter distances and explosive sprinting exercises. This progressive build-up ensures that athletes peak at the right time, maximising their speed and performance during critical races. 

Similarly, hospitality professionals can benefit from the guidance of experienced mentors. Developing service skills progressively and specialising in niche markets or services can help businesses distinguish themselves from competitors. For instance, just as sprinters focus on specific muscle groups to enhance performance, hospitality businesses can focus on particular aspects of service, such as personalised guest experiences or high-quality dining options. The dedication, strategic development, and leveraging of unique strengths seen in Jamaican sprinters can drive excellence, ensuring that employees are well-prepared and capable of delivering outstanding service during peak periods. 

Tiger Woods and the “Big Miss”
Despite his current form, Tiger Woods is regarded as one of the two greatest golfers of all time. His coach during his most successful period was Hank Haney, who focused on identifying and eliminating the “big miss” from his game.  

The “big miss” refers to a significant, potentially disastrous error that can derail an athlete’s performance, such as Tiger’s occasional severe hook.  

By meticulously analysing Woods’ swing and technique, Haney worked to redevelop a swing that minimised the risk of this major mistake, ensuring more consistent and reliable performance. This approach helped Woods avoid errors that could have had a more substantial negative impact on his game, allowing him to maintain his competitive edge and dominate the game for so long. 

Hospitality can draw a valuable lesson from this meticulous approach to error prevention. By identifying and addressing potential major service failures—such as a significant drop in customer satisfaction due to poor service or operational inefficiencies—we can create strategies and processes to mitigate these risks. This proactive stance involves training employees to handle high-pressure situations, regularly reviewing feedback and refining processes while maintaining high standards of quality control. By focusing on eliminating the “big miss,” we can enhance overall service consistency, reduce the likelihood of significant failures, and ultimately improve guest satisfaction and loyalty. 

Conclusion
The hospitality industry stands to gain significantly by adopting leadership principles from the world of sports. From Gareth Southgate’s visionary approach and the British Cycling team’s focus on marginal gains, to the comprehensive support systems in tennis to the mentorship in Jamaican sprinting and Tiger’s ‘big miss’, these examples offer valuable lessons. By embracing these strategies, we can foster a positive workplace culture, enhance team cohesion, and drive continuous improvement, ultimately leading to greater employee satisfaction, customer loyalty, and business success. 

Hospitality People Group, remains dedicated to exploring all opportunities to provide insights and support our clients and their people strategies. Our commitment to think outside the box ensures that businesses can learn unique and valuable lessons to create lasting value and positive experiences for their employees and customers.  

If you would like to discuss your people strategy further, then please get in touch.  

Guy Lean, Managing Director – Madison Mayfair 
+44 20 8 600 1180 / +44 7813 009787  / [email protected]  


Dan Akhtar, Managing Director – HPG Advisory Services 
+44 208 600 1166 / +44 7808 157796  / [email protected]  


Chris Denison Smith, Managing Director – FM Recruitment
+44 20 8 600 1160 / +44 7775 711923  / [email protected]  


Andrea Shaw, Director – FM Recruitment
+44 20 8 600 1160 / +44 7714 236469  / [email protected]  

 

 

 

 

UK Hotel Investment Reaches New Peaks: A Mid-Year 2024 Analysis

Posted on by Dan Akhtar

The UK hotel investment market has seen a significant resurgence in the first half of 2024, with Knight Frank reporting that investment volumes reached an impressive £3 billion between January and the end of June. This marks a substantial increase from the £990 million recorded in the same period in 2023 and exceeds the total investment for the whole of last year, which stood at £2 billion. This remarkable growth can be attributed to several key portfolio transactions and the continued interest of international investors, particularly from the United States. 

Major Transactions Driving Growth
The first half of 2024 witnessed some landmark deals that have driven the overall investment volume. Notable transactions include Blackstone’s acquisition of the Village Leisure portfolio for £850 million, Starwood Capital Group’s purchase of 10 Radisson Edwardian Hotels in London for £800 million, and Landsec’s sale of its hotel portfolio to Ares Management for £400 million. These significant portfolio transactions highlight the increasing attractiveness of the UK hotel market to major investors. 

In total, portfolio transactions accounted for 76% of the total transaction volume, a significant rise from 53% in H1 2019. This shift can be partly attributed to the scarcity of high-quality single asset hotels available for sale, which has led to a 19% year-on-year decline in the number of single asset transactions and a 34% decline in transaction volume. 

Focus on London
London continues to be the epicentre of hotel investment activity, attracting around 70% of the total investment in the first half of the year. This focus on the capital is largely driven by overseas investors, who accounted for acquisitions totalling £1.3 billion, with US investors alone representing 77% of the overall investment activity. The city’s enduring appeal as a global financial, political, and cultural centre ensures steady demand and makes it a resilient market through challenging economic conditions. 

However, with Edinburgh once again being given the top spot in Colliers’ UK Hotels Market Index, London has some very strong competition. Edinburgh’s strong performance in Average Rate, Occupancy and RevPAR has helped it secure this position and will serve to further highlight its appeal to further hotel investment. With high land prices and relatively limited RevPAR growth London has slipped down Colliers’ list, while cities like Belfast, Manchester, Liverpool and Glasgow have risen, giving investors further options in the competitive UK market. 

Market Outlook for H2 2024
The outlook for the second half of 2024 remains optimistic. According to Knight Frank, the momentum for investment in the UK hotel sector is expected to continue building, supported by a diverse pool of well-capitalised investors. The anticipated reduction in interest rates is also likely to enhance investor confidence and drive further activity in the market. Stakeholders are increasingly pressuring owners to bring assets to the market at realistic and deliverable levels, which should facilitate successful and timely sales. 

Henry Jackson, partner and head of hotel agency at Knight Frank, stated, “The direction of travel for the sector is positive, and the volume of portfolio transactions is evidence that the sector remains attractive. An increase in the quality and the number of hotels seeking to transact is expected, as hotel owners who have extended their investment cycles now seek to realise their exit strategies”. This sentiment is echoed across the industry, with a strong pipeline of hotels currently in legal stages, suggesting sustained investment momentum. 

Development Pipeline
The UK is also leading Europe in terms of new hotel developments, with the highest number of new projects in the pipeline by the end of the first quarter of 2024. According to Lodging Econometrics, there are 321 projects (45,257 rooms) under development, with London having the highest pipeline by project count in Europe, featuring 80 projects (14,987 rooms). This robust development pipeline indicates a healthy future supply of new hotels, further boosting the attractiveness of the UK market to investors. 

Challenges and Opportunities
While the overall investment landscape is positive, the market is not without its challenges. The lack of quality single asset hotels for sale has been a notable issue, impacting transaction volumes and leading to a greater reliance on portfolio transactions. Additionally, the increased cost of debt and uncertainty around interest rate stability have put many deals on hold, as seen in 2023 when investment volumes hit their lowest in a decade.

However, the prospect of interest rate cuts is expected to support deal volumes as the year progresses, narrowing the bid-ask gap and aligning buyer and seller expectations more closely. This is crucial for facilitating transactions and driving market activity. 

Conclusion
The first half of 2024 has marked a significant recovery and growth period for the UK hotel investment market, driven by major portfolio transactions and strong international investor interest, particularly from the United States. With London continuing to attract the majority of investment and a robust development pipeline in place, the outlook for the second half of the year is promising. Despite some challenges, such as the scarcity of quality single asset hotels and the high cost of debt, the overall direction for the sector remains positive. As interest rates are expected to decline, further enhancing investor confidence, the UK hotel market is well-positioned for sustained growth and activity in the coming months. 

The Taylor Swift Effect:  Taylor Swift’s Eras World Tour and its Impact on the Hospitality Industry

Posted on by Katherine Wyles

As the UK & Ireland prepares for Taylor Swift’s highly anticipated ‘The Eras Tour’, excitement is building not only among fans but also within the hospitality industry. The tour, which has already achieved phenomenal success globally, is set to bring a significant economic uplift to the cities graced by the pop icon’s presence. This article explores the impact of the tour on the hospitality industry, highlights innovative business strategies that have emerged, looks at some instances where fan exploitation may have occurred, and offers insights into how the industry can harness the positive potential of such mega-events. 

The “Swiftonomics”of ‘The Eras Tour’
Taylor Swift’s ‘The Eras Tour’ has been a business phenomenon, with its ripple effects extending far beyond concert venues. As the tour weaves across the UK, beginning in Edinburgh and culminating at London’s iconic Wembley Stadium, it brings a wave of economic benefits. Hotels, restaurants, and local businesses are poised to experience a surge in patronage, with fans, affectionately known as Swifties, travelling from near and far to witness their beloved star in person. Barclays have noted that the UK is set to see a £1.2B bounce from the 15 concerts. 

While these ‘swiftonomics’ also cover a boost to retail, the majority of revenue will be going towards hospitality and tourism. The latest figures from STR suggest that Occupancy on the Books for June in the host cities of Edinburgh, Liverpool, Cardiff, and Dublin are all at least 10% ahead of this time last year. London, always more resistant to mega events due to a much larger supply, is also seeing a double digit difference for the concerts in August. Some hotel chains, such as Whitbread’s Premier Inn chain, have been completely sold out since the tour was first announced. In North America, hotels in the cities of Atlanta, Chicago, Detroit, Pittsburgh, and Cincinnati hotels saw an average uptick in ADR of 71% between 2022 and the U.S. Leg of The Eras tour in 2023. 

Swift Leverage
Businesses have been quick to adapt to the influx of Swifties, implementing creative strategies to attract increased business. For example, retailers have stocked up on Swift-inspired apparel in response to reports that one in five ticket holders would purchase new outfits specifically for the concerts . Restaurants have crafted special menus and cocktails named after Swift’s hit songs, turning ordinary dining experiences into celebrations of her music. 

Hotels have introduced themed packages, like Royal Champagne Hotel and Spa’s exclusive ‘Champagne Solution’, named after a song on Taylor’s latest album and designed to appeal to Swifties who may wish to follow Taylor’s lead, and find solace in high-end bubbles after heartbreak.  Likewise, a bakery in Paris is being inundated with special orders of “Taylor Swift on a stage with a microphone in fondant, Taylor Swift riding a unicorn, and cakes with her face on them …”. Liverpool has taken this creativity a step further as the whole city transforms itself into a Taylor Town Trail with art installations representing each Era set to be placed across the city centre as Anfield hosts three concerts in June. These creative efforts not only attract more business but also enhance the overall concert-going experience for fans. 

Employee Engagement
Much of Taylor Swift’s stock with her loyal fans has been built through a long term emotional connection. Her music and her interactions with fans has connected with fans who trust her so much that many re-purchased almost identical recordings of albums they already had, in order to support her in her battle with the owners of her original recordings. Hospitality businesses can further enhance customer experiences by leveraging their employees, many of whom may be huge fans, to offer some real authenticity to their guest offering.  

Communicating with your team and empowering employees to engage with guests about Taylor Swift’s music, tour dates and related local events could make interactions more engaging for guests and fans. If appropriate, employees could wear themed attire or participate in Swift-related activities, creating a festive and welcoming atmosphere. In hotels, concierge services may want to brush up on their pop culture and could offer personalised recommendations for local attractions or Swift-themed experiences, to ensure visitors make the most of their stay. 

A Reputation at Risk
Despite the successes, there have been instances where businesses have damaged their reputations by exploiting fan enthusiasm. The most notable example is the Ticketmaster fiasco, where fans faced a chaotic and frustrating ticket-buying experience, leading to public outcry and a tarnished reputation for the ticketing giant.  

In some cities, hotels dramatically increased room rates once tour dates were announced, resulting in backlash on social media. Hotel prices in Sydney and Melbourne in the week of concerts averaged nearly double the price of the next week. In Dublin, hotel prices are nearly triple what they are when the Taylor Swift tour isn’t in town. While this is likely the result of dynamic pricing and very normal in the industry, it has sparked widespread frustration among fans. Such opportunism can backfire, damaging the long-term reputation of these establishments. 

Lessons Learned
The ‘Eras Tour’ offers valuable lessons for the hospitality industry. It underscores the importance of preparedness for handling large-scale events and the need for innovation in customer engagement. Businesses that strike a delicate balance between capitalising on the opportunity and respecting the consumer by investing in their experience, will likely reap long term rewards. By fostering a positive environment and creating memorable experiences, hospitality businesses can ensure that the ‘Taylor Swift Effect’ translates into long-term loyalty and not just a fleeting ‘Love Story’. 

Fair Pricing Strategies
Businesses should balance capitalising on increased demand with maintaining fair pricing. Overcharging can lead to negative reviews and long-term reputational damage. Offering value-added packages that justify higher rates without seeming exploitative is a better approach. 

Creating Unique Experiences
Fans appreciate creative and thoughtful touches. Developing themed packages, limited-time offerings or in-room amenities that celebrate the event can enhance the customer experience and generate positive word-of-mouth.  

Employee Engagement
Leveraging enthusiastic employees to enhance the customer experience can be highly effective. Empowering the team to be knowledgeable and engaging with Swifties while incorporating themed attire or activities can create a memorable atmosphere. Concierge services offering personalised recommendations can further enrich guest experiences. 

Engagement and Transparency
Engaging with fans on social media and through direct communication can build a positive relationship. Transparency about pricing and availability prevents misunderstandings and builds trust. Responding to feedback, both positive and negative, shows that a business values its customers. 

Collaborations
Partnering with local businesses can create more comprehensive and attractive packages for visitors. Collaborations with transportation services, local attractions, and merchandise vendors can enhance the overall experience for fans. 

Taylor Swift’s ‘The Eras Tour’ has highlighted the tremendous potential for economic uplift and innovative strategies within the hospitality industry. By learning from both the successes and missteps associated with the tour, businesses can better prepare for future large-scale events.  

The Hospitality People Group, remains dedicated to exploring all facets of the hospitality industry to provide relevant insights and support our clients’ people strategies. This commitment ensures that businesses can harness opportunities like the ‘Eras Tour’ to create lasting value and positive experiences for their customers. 

 If you would like to discuss your people strategy further, then please get in touch. 

Chris Denison Smith, Managing Director – FM Recruitment 
+44 20 8 600 1160 / +44 7775 711923
[email protected]  

Andrea Shaw, Director – FM Recruitment 
+44 20 8 600 1160 / +44 7714 236469 
[email protected] 

Taylor Swift – Image Courtesy of Paolo Villanueva

The Impact of Increased Salary Thresholds on the UK Hospitality Industry

Posted on by Dan Akhtar

The recent increase in the salary thresholds for skilled worker visas has marked a significant shift in the landscape of UK employment, particularly for the hospitality industry. As of April 4, 2024, the minimum salary threshold for a Skilled Worker visa application has risen to the higher rate of £38,700. While the previous threshold of £26,200 had already profoundly impacted the hospitality sector, this increase is now being felt across even more hospitality departments and indeed most business sectors. 

Hospitality Industry 
The hospitality industry has long relied on international workers to fill a variety of roles, from restaurant managers and chefs to housekeeping and front-of-house employees. While the thresholds do not apply to those who are already settled in the UK, they will present a considerable challenge, particularly for small businesses and those located outside of London and the south east, where salaries are typically lower. 

The trade body UKHospitality estimates that 95% of sponsored visas for chef and manager roles granted in 2022 would not meet the new salary requirements. The dramatic increase poses a substantial burden on employers, many of whom are already grappling with challenges in retention and recruitment alongside ongoing economic uncertainties. 

The increased thresholds are consequently deterring skilled workers from considering roles in the UK, pushing employers to compete for a smaller pool of domestic workers or to raise salaries, which simply may not be feasible for many establishments.  

Impact on Small Businesses
Small businesses, which form the backbone of the hospitality industry, are disproportionately affected. These businesses, without the support of a global hospitality brand, often operate on very thin margins and will struggle to meet the new salary requirements. For a local pub or a family-run restaurant, the prospect of raising a manager’s salary by 50% is daunting. With the increased minimum wage, costs of energy and business rates continuing to drive up costs, and leading to higher prices for consumers, we are more likely to see reductions in employees, or even closures, further straining the sector. 

Broader Economic Implications
The increase in salary thresholds is part of a broader strategy to reduce net migration following record numbers in the previous year. While this policy may achieve its goal of reducing overall immigration, there is a risk of creating immediate labour shortages in sectors that traditionally rely on skilled workers from abroad, such as hospitality, technology, and healthcare. However, we are also beginning to see the implications that this policy may have on the longer-term future of London as a global financial hub. KPMG recently announced that they had cancelled job offers for a new intake of foreign graduates as the starting salaries were lower than the new threshold. While the “Big Four” firm will have more flexibility to find solutions than small hospitality businesses, it will be interesting to see how this affects the long-term pipeline of attracting the best and brightest graduates. 

Potential Solutions and Adaptations
We would recommend that all employers in the hospitality industry review the new salary thresholds and identify the roles that meet the relevant minimum salary levels. This will help when planning their people strategy giving you more time to plan for the longer term. However, beyond this, the industry will need to continue finding innovative solutions to mitigate the impact of these changes. 

Upskilling and Training 
One potential solution is to invest in upskilling and training domestic workers to fill the roles traditionally occupied by international talent. This strategy requires significant investment in training programs, apprenticeship schemes and partnerships with educational institutions to ensure a steady pipeline of skilled workers. 

Workplace Culture and Employee Benefits
To attract and retain talent, employers will need to nurture their workplace culture. Primarily, this means understanding and communicating with your people, but may also require enhancing employee benefits and working conditions. This could include offering flexible working hours, career development opportunities, and other non-salary benefits that make roles more attractive to domestic workers. 

Technological Innovation
Technological innovation will play a role in mitigating employee shortages and has the potential to completely reimagine how we do business. Automation and digital tools can streamline operations and reduce the reliance on human labour for certain tasks, allowing them to concentrate on value-adding guest experiences. However, businesses need to ensure that these innovations work well for their customers or risk damaging the guest experience and brand image.  

Rethinking Business Models
Some businesses may need to rethink their business models and/or people strategy entirely. This could involve focusing on smaller, more manageable operations that require fewer staff or exploring alternative revenue streams. 

Summary
In conclusion, the decision to increase the salary thresholds for skilled worker visas represent a significant challenge, but not just for the hospitality industry. With little prospect of the decision being reversed (the shadow government have broadly supported the increase), this is something that all businesses will need to consider in their long-term people strategy. They will need to explore innovative solutions to attract and retain talent, invest in training and upskilling domestic workers, and potentially rethink their business models to adapt to a decreased workforce.  

If you would like to discuss about how this policy might affect your people strategy and explore some options that might help support your business through the change, then please get in touch.  

Dan Akhtar, Managing Director – HPG Advisory Services 
+44 208 600 1166 / +44 7808 157796
[email protected]  

Guy Lean, Managing Director – Madison Mayfair 
+44 20 8 600 1180 / +44 7813 009787
[email protected]  

Chris Denison Smith, Managing Director – FM Recruitment 
+44 20 8600 1160 / +44 7775 711923
[email protected]   

Andrea Shaw, Director – FM Recruitment 
+44 20 8 600 1160 / +44 7714 236469
[email protected] 

 

A Review of the Future Hospitality Summit in Saudi Arabia: Insights from Guy Lean

Posted on by Guy Lean

The Future Hospitality Summit, held at the beginning of May in Riyadh, was a dynamic showcase of Saudi Arabia’s burgeoning tourism and hospitality industries. For Guy Lean, a first-time attendee on his inaugural visit to Saudi Arabia, it was an opportunity to witness first-hand the incredible growth potential in the region. From bold mega-projects to the cultural shifts happening across the country, the summit offered valuable insights for businesses eager to explore new opportunities. 

Vision 2030: A Unified Strategy
One of the central themes of the summit was Saudi Arabia’s Vision 2030—a strategy designed to attract 150 million visitors to the country. Guy noted that everyone he spoke with, from ministers to business executives, was fully aligned with this vision. It was clear that the leadership-driven, KPI-oriented approach had permeated every level of the industry. “The first topic of conversation is about the Vision,” Guy said. “Moving from the original target of 100 million to 150 million visitors shows the ambition. They’re incredibly KPI-driven, and everyone’s working towards the same goals.” 

Mega and Giga Projects: Scale and Ambition
Saudi Arabia’s mega and giga projects including Qiddiya and Red Sea Global demonstrate the country’s scale and ambition. Guy found the scope of these developments emblematic of the nation’s long-term vision. “These projects are vast,” Guy said. “Neom is just one of the many plans that will completely transform the region. And the Red Sea project will offer something truly unique, both from a cultural and natural perspective.” 

These projects, which could otherwise be overwhelming in their enormity, reflect a broader strategy for economic diversification. And yet, they are just the tip of the iceberg. Beyond these colossal initiatives, Guy saw an extensive focus on practical hospitality needs, like hotels in secondary cities, business accommodations, and serviced apartments. 

Warmth and Accessibility: A Cultural Shift
Despite some preconceived notions about the region, Guy found the welcome to be warm, welcoming and authentic.  At the conference, he noticed that ministers and executives were genuinely interested in hearing about new ideas and connecting with people. “The Saudis are incredibly accessible,” Guy reflected. “They’re open for business, they want to talk to you, and they’re genuinely curious about why you’re there.” 

This cultural shift was refreshing. Guy described how approachable everyone was, regardless of their seniority or title. He felt that this openness would create countless opportunities for meaningful collaboration. “The Saudis are big on collaboration,” he noted. “They want to meet you, connect with you, and understand your service. It was a breath of fresh air.” 

Sustainability and ESG Commitment
While sustainability has been recently touted as a key focus in global business (although conspicuously absent at CHRIS which we attended in April), Guy felt there was a genuine commitment to ESG principles in Saudi Arabia.  

The projects presented at the summit weren’t just ambitious; they were carefully crafted to integrate sustainable practices. This dedication to sustainability was a common thread throughout the summit. From careful consideration of the Red Sea’s unique marine life to developing tourism that respects sacred sites, Saudi Arabia seems committed to building a responsible hospitality industry. “They know the value of their land, and they’re not just going to bulldoze through it,” Guy said. 

Challenges and Strategies for Success
While the opportunities presented at the summit were vast, Guy acknowledged that businesses who may want to tap into the market would require a strategic approach. Building meaningful relationships takes time, and businesses need to be prepared to invest in repeated visits to understand the market and establish trust. “You can’t just go once and expect lots of business,” he cautioned. “It’s an going investment in time to build genuine connections.” 

Another important consideration is the emphasis on Saudi nationalisation (or Nitaqat), which aims to bring more Saudi talent into the workforce. International expertise is welcome, but Guy stressed that businesses must recognise the focus (and legal requirement) on nurturing local talent. “They want to train their own people, but they’re aware of the expertise needed to do this properly,” he said. 

The Future Outlook
The Future Hospitality Summit painted a clear picture of the future of Saudi Arabia’s hospitality sector, one marked by bold ambitions and a willingness to work with global partners. Guy was confident that, despite the challenges, the opportunities in the region are unmatched. “I’ve never seen an opportunity this big in my life,” he said. “Dubai was always huge, but this is on a different level.” 

With the ongoing concerted national effort, the projects and partnerships emerging in Saudi Arabia really could elevate the region into a premier hospitality destination. Guy left the conference optimistic that Saudi Arabia will realise its Vision 2030, with projects that offer world-class experiences while maintaining cultural authenticity and prioritising sustainable growth. 

Conclusion
In conclusion, businesses seeking growth in the Middle East would be wise to pay attention to Saudi Arabia. The nation’s ambitious Vision 2030, combined with its genuine commitment to sustainability and warm, collaborative culture, makes it an attractive destination for investment. However, success requires thoughtful planning, long-term relationship-building, and a willingness to adapt to local customs and priorities. 

For Guy, the Future Hospitality Summit was inspiring. “It was a truly authentic experience,” he said. “The Saudis are doing something really special, and I believe they’re going to pull this off.” 

If you would like to arrange a chat about your people strategies or to discuss any points raised in this article, then please get in touch on +44 (0)208 600 1182 or +44 (0)7813 009 787 or email [email protected]  

Chat Button