Category: News

Insights from International Hospitality Investment Forum (IHIF) 2024

Posted on by Dan Akhtar

The International Hospitality Investment Forum (IHIF) 2024 took place in Berlin in mid April 2024. Like many recent articles, insights and data we have seen recently, the increasingly positive results in terms of sector growth continue to be treated with caution as investors seek to secure long-term value. 

Here we look at the current UK investment landscape and highlight some of the key themes from IHIF such as expansion strategies, the future of hotel operations and what they mean to the global investment infrastructure. 

UK Investment and Market Dynamics
The UK hotel market has seen a robust recovery, with investments soaring to £1.7 billion in the first quarter of 2024—marking the highest level since 2019 and a 138% increase from the first quarter of 2023. 

In this article from Hotels, David Eisen cites recent data from Cushman and Wakefield to say “London accounted for 60% of major deals by volume and included the sale of Atlas House to Integrity International Group and the BT Tower to U.S.-based hotel owner and operator MCR Hotels” These deals highlight a growing trend of converting non-hotel assets into hotels, a strategy expected to continue shaping the market. 

The transaction volume in this quarter spanned 93 properties across the UK, encompassing around 7,600 rooms. Major portfolio deals like the Edwardian UK Radisson Hotel Portfolio and the LXi REIT Travelodge Portfolio made up 60% of the transaction volume. Private buyers dominated the market, responsible for 69% of the transactions, followed by public investors and institutional-backed capital. 

Ed Fitch, head of hospitality UK & Ireland at Cushman & Wakefield, commented on the sustained high performance of the UK hotel sector, which is stabilising as the new norm. Despite a strong capital interest, the market faces constraints due to a limited number of available properties and cautious buyer sentiment ahead of expected base rate cuts and the upcoming UK election. 

Strategic Expansion
Speaking at IHIF in Berlin, Sir Rocco Forte outlined his group’s strategy to leverage its strong U.S. customer base, where 40% of its business originates, and explore high-demand locations like New York, Los Angeles, Beverly Hills, and Miami, despite high entry costs. The investment from PIF, which acquired a 49% stake in the hotel group, is poised to double the size of Rocco Forte’s portfolio within five years, including launching The Carlton Hotel in Milan and a new venture with fashion company Capri Group in Naples by 2027. 

Sir Rocco highlighted the group’s commitment to maintaining high service standards in the face of rising costs and continuing to manage food and beverage operations in-house to ensure quality. He also emphasised the importance of enhancing employee remuneration and working conditions, reflecting on COVID-19 as a catalyst for improving employee welfare and aligning hotel operations closely with local cultures. 

Regional Opportunities
On Day 2 of IHIF, hotel executives highlighted increasing investments and travel interest in Mediterranean destinations, contrasting with the economic challenges in northern Europe such as Germany.  

Hotel News Now reported that that Tim Abram of Starwood Capital acknowledges the difficulties in Germany due to a sluggish economy and high interest rates but reiterated the country’s strong investment potential. 

On the other side of the coin, Italy is being seen as an emerging hotspot for hotel investments, similar to Spain a decade ago. Marcello Cicalò of Bluserena Hotels & Resorts noted Italy’s fragmented market and rising asset values are attracting significant private equity interest. Andreea Bodea of Pygmalion Capital noted that while Italy can boast the highest room count in Italy, many owners are still struggling to attract the investment their properties need in order to meet and exceed the expectations of the modern traveller. 

Operational Insights and Future Prospects
The forum highlighted the critical need for operational efficiency and adapting to evolving consumer expectations. The changing landscape of hotel food and beverage services was a focal point, emphasising innovation and operational optimisation to boost profitability. Sébastien Bazin of Accor shared insights from the company’s decade-long transformation, emphasising the importance of digital integration and stable leadership amidst a volatile geopolitical landscape. “Navigating new challenges requires a robust blend of innovation and tradition,” Bazin remarked during his session. 

Customer Loyalty and Guest Experience
Hospitality Investor reported on a fascinating panel discussion that once again highlighted the evolving concept of loyalty in the hospitality sector. The discussion, featuring insights from Antonio Gonzalez, CEO of Sunset Hospitality Group, and Gregory Lanter, a senior executive at Club Med, emphasised the shift from traditional transactional loyalty to a more emotionally driven model.  

Gonzalez elaborated on the importance of experiential hospitality that withstands changes in pricing strategies or market trends. By launching Sunset Hotels & Resorts, his group aims to expand its portfolio significantly by 2026 while focusing on crafting unique experiences that resonate on a personal level with guests. 

Lanter shared similar sentiments, pointing out that the real value lies in providing life-enriching human experiences beyond the standard offerings of rooms and amenities. He stressed that the key to achieving this is through employees who possess strong interpersonal skills rather than just technical capabilities, enabling them to engage with guests meaningfully. 

Both leaders highlighted the role of technology in enhancing guest experiences. Gonzalez discussed how technology could leverage data to better predict customer preferences and streamline experiences, making them more seamless and personalised.  

Meanwhile, Lanter viewed AI as a disruptive tool that can revolutionise how guest services are delivered, particularly in tailoring the marketing and distribution of these personalised experiences. 

Market Optimism Amidst Challenges
Despite macroeconomic uncertainties, the forum radiated a general optimism about the hospitality market’s future. The European M&A outlook appears promising, reflecting improvements in deal structures and an increase in strategic investments. However, the forum also acknowledged challenges such as rising costs, interest rates, the current geo-political instability and the necessity for flexible business models to adapt to rapidly changing market conditions. 

In conclusion, IHIF 2024 offered invaluable perspectives on the continued resilience and adaptability of the hospitality industry, highlighting the sector’s commitment to growth and innovation. The discussions reflect the industry’s concerted efforts to navigate a complex global landscape while pursuing expansion and refinement. 

Global Hospitality Investment Insights – Spring 2024 

Posted on by Dan Akhtar

With IHIF (Berlin), Caribbean Hotel and Resort Investment Summit (Florida) and Future Hospitality Investment Summit (Saudi Arabia) all taking place in April, it presents an opportune time to delve into the current state of hospitality investment, spotlighting the investment landscape across the UK, Europe, and the Middle East, while referencing global patterns that offer insights into the future of hospitality. 

Recovery and Reorientation: A Global Snapshot
The hotel industry has continued to show remarkable resilience in the face of adversity. According to the Global Hotel Investment Outlook 2024 by JLL, by the end of 2023, global Revenue Per Available Room (RevPAR) not only recovered but in some regions exceeded 2019’s figures, showcasing an industry on the rebound.  

This resurgence is underpinned by a burgeoning interest in urban markets such as London, New York, and Tokyo, which are now prime targets for hotel investors. However, the narrative varies by region, with the Middle East and Europe leading the charge, with Asia Pacific trailing slightly, as it grapples with slower recovery rates. 

The JLL article also reveals that while RevPAR recovered, global hotel investment volume was significantly low in 2023, marking the lowest total since 2012 (excluding the COVID-19 impacted 2020). This decline was attributed to capital market dislocation caused by high-interest rates and geopolitical instability.  

Despite these challenges, the year witnessed a large number of global trades, indicating a continued interest in the hotel sector. However, there was a notable shift towards smaller, single-asset trades and a decline in high-dollar portfolio transactions. 

Chinese Market: The Awaited Return
A critical element in the global travel and hospitality puzzle is the return of Chinese international travellers. Pre-pandemic, this demographic was a powerhouse of spending and mobility.  

However, as Hospitality Investor reports, despite the lifting of travel bans, Chinese international seat capacity in early 2024 remained 30% lower than 2019 levels. The expected revival of Chinese outbound travel could catalyse significant shifts, particularly in markets heavily reliant on this segment but there remain significant challenges. The UK, with a strong influx of students and their families returning, has done well but, the overall picture for Europe is less impressive. War in mainland Europe and the diversion of direct flights over Russia alongside and reprioritisation of the economic landscape at home has led to a slower recovery in the long-haul sector with gateway cities in the US and Asia the primary benefactors in the recovery so far. 

Luxury and Beyond
While the luxury market has performed better than any other segment post-pandemic, this is now facing a potential slowdown. Hospitality Investor writes that significant brands like Burberry are signalling a downturn due to decreased spending by aspirational shoppers. While this trend, coupled with a general market correction following years of growth, poses challenges for luxury goods, the impact on the luxury travel and accommodation sector remains nuanced. The travel industry may still find resilience through a shift in consumer preferences towards meaningful luxury experiences over goods.  

The luxury travel market is expected to continue growing, driven by unique, personalised experiences that cater to high-net-worth individuals. The evolving luxury landscape suggests polarised spending towards high-value and luxury experiences, with an ongoing demand for unique and immersive travel experiences despite broader market challenges. 

Furthermore, the narrative extends beyond mere accommodation to embrace sustainability, wellness, and authenticity, elements now integral to brand differentiation and investment appeal. The evolving expectations of travellers are reshaping the essence of hotel branding, with a marked shift towards experiences aligned with personal values. 

Market Movements: Europe and the Middle East in Focus
Europe presents a mixed bag; the allure remains strong for domestic and international travellers alike, buoyed by events such as the Summer Olympics and Taylor Swift’s Mega Tour. However, the shadow of geopolitical tensions and economic uncertainties looms large, affecting travel dynamics, particularly from key markets like the aforementioned China. 

The Middle East, particularly Saudi Arabia, has emerged as a beacon of growth and investment, catalysed by major initiatives to boost tourism and hospitality as part of broader economic diversification efforts. This region’s upward trajectory offers a compelling narrative for investors, but the ongoing conflict in Gaza has started to impact revenues and the longer-term impact is hard to predict. Bloomberg recently reported that Dubai based Emaar Properties PJSC posted a 33% drop in fourth-quarter revenue despite a record annual profit in 2023. The conflict has also led to wider regional effects, including consumer boycotts of major foreign brands and a decline in tourism in nearby countries.  

Looking Ahead
The global hotel industry, particularly in strategic markets like the UK, Europe, and the Middle East, is at a pivotal juncture, shaped by the slow yet steady return of Chinese travellers, the polarisation between luxury and value and the increasing emphasis on sustainability and experiential luxury. Together with the unpredictable global geopolitical landscape, there are significant opportunities for hospitality investors. 

While the landscape is fraught with uncertainties, the undercurrents of recovery, innovation, and a renewed focus on quality and sustainability signal a new era for hotel investment. The industry’s ability to adapt, innovate, and cater to the evolving preferences of global travellers will define the success of investments in the coming years. 

This month, we will be attending the Caribbean Hotel and Resort Investment Summit in Florida and the Future Hospitality Investment Summit in Saudi Arabia. These conferences serve as critical platforms for industry stakeholders to converge, share insights, and forge the path ahead. We remain committed to providing our clients with nuanced, forward-looking advice, grounded in a deep understanding of global trends. 

If you are attending the Caribbean Hotel and Resort Investment Summit in Florida and would like to set up a chat, please contact Dan Akhtar or Andrea Shaw. 

If you are heading to Saudi Arabia for the Future Hospitality Investment Summit, Guy Lean will be our representative. Please contact him to set up a chat. 

 Dan Akhtar, Managing Director – HPG Advisory Services 
+44 208 600 1166 / +44 7808 157796 
dan@hpgsearch.com   

Guy Lean, Managing Director – Madison Mayfair
+44 20 8 600 1180 / +44 7813 009787 
guylean@madisonmayfair.com   

Andrea Shaw, Director – FM Recruitment 
+44 20 8 600 1160 / +44 7714 236469 
andreashaw@fmrecruitment.co.uk 

 

Women in Hospitality: Paving the Road for Gender Equality and Inclusion

Posted on by Katherine Wyles

The hospitality industry is a vibrant and fundamental player in the global economy. Yet, despite its worldwide reach and potential for career growth, there persists an undeniable disparity in gender representation, particularly in leadership roles and pay equity.  

With technological advancements reshaping the way we work, we have an opportunity to make advancements in all areas, particularly in championing the cause of women in hospitality.  

Gender Equality – The Current State of Play
Celebrating women in hospitality is not merely a gesture of recognition but a crucial step toward achieving gender equality.  

A PWC report in 2020 revealed that among the lowest-paid 25% of positions across the hospitality, travel and leisure sector, 54% are held by women and of the highest-paid 25% of positions, 58% are held by men.  

This illustrates both the gender wage gap and the underrepresentation of women in the upper levels of the sector. 

The PWC report indicates that if the current rate of progress on closing the gender pay gap continues, it could take another two decades to achieve parity. This slow pace is unacceptable, risking the loss of invaluable talent and hindering performance.  

The gender pay gap in hospitality has widened, with the majority of board positions, which influence average pay, being held by men, despite women constituting 70% of the workforce. This imbalance is further exacerbated by high employee turnover and the prevalence of insecure, seasonal work, often occupied by women to fit around caring-at-home responsibilities. 

In 2022, women earned 17% less than men on average, a gap that is partly attributed to traditional patterns of women leaving the workforce during childbearing years, which affects continuity and contributes to lower wages.  

Despite efforts for equal pay, women lag in nearly every occupational category, with only 8.8% of Fortune 500 CEOs being female.  

Our Commitment to Gender Equality
At Hospitality People Group, we recognise that bridging this gap is not solely about promotion and remuneration but about fostering a supportive workplace culture where everyone can be empowered to realise their potential.  

This could entail providing flexible working options given the acceleration of technology and the increased ability to be connected while working remotely. This could be particularly hekplful to women as they return from parental leave or are navigating different life stages such as the menopause.  

By identifying and attracting the best talent and advocating for a diverse workforce, we can ensure that clients benefit from a wide array of perspectives, enriching the hospitality experience for all. 

We are committed to supporting women as they navigate the challenges of returning from maternity leave or caring for family members, while also aiding in rebuilding confidence and advocating for equitable practices among our clients. 

Andrea, Mara, and Tairona are all Founding Members of the “Inspiring Women in Hospitality” community, a platform that reflects a commitment to nurturing gender diversity and inclusion within the industry. Initially founded as podcast by Naureen Ahmed, the community has evolved and the Inspiring Community was launch in September last year.  

Naureen Ahmed joined us for a Success Story  during the month of International Women’s Day in March to share her insights on empowering women in hospitality. 

We are also proud sponsors of Boutique Hoteliers’ Women in Hotels brunch, taking place on International Women’s Day at art’otel London Battersea Power Station. 

How can Women in Hospitality be further supported?
Taking inspiration from the Inspiring Community we have summarised some of their key actionable recommendations below. 

  •  Fostering a Diverse Community 

To effectively confront gender bias, the hospitality industry must encourage the formation of communities that unite women from varied cultures, backgrounds, experiences, and age groups. This diversity can become a powerful force for change, as it brings a multitude of perspectives and solutions to the table, fostering a more inclusive atmosphere. 

  • Promotion of Gender Equality 

The industry should facilitate collaborations with women who are passionately working towards gender equality. Businesses can then help ensure that these discussions influence policy and practice at every level of operation. 

  • Professional Development Platforms 

Access to professional development platforms is crucial. The industry should provide spaces where women can enhance their skills and broaden their professional network. These platforms can serve as springboards for career advancement and personal growth, helping to break down the barriers that women face in the hospitality sector. 

  • Mentorship Opportunities

Mentorship is a key strategy for personal and professional development. The industry should encourage women to engage in mentorship roles within their peer groups, offering guidance, support, and encouragement to one another. This peer-to-peer mentorship can be a powerful catalyst for individual and collective progress. 

  •  Structured Career Discussions

Finally, structured career discussions, perhaps facilitated by industry specialists can provide direction and clarity for women forging their paths in hospitality. These sessions can help women identify career milestones and strategise on how to reach them, while also advocating for systemic changes that can pave the way for future generations of women in hospitality. 

Specialists in People Strategy
As specialists in people strategy, we recognise the importance of a diverse talent pool, and the impact of a workplace culture that supports it.  

This variety of perspectives, encompassing all genders and levels of seniority, is crucial for innovation and staying ahead in a competitive market.  

Offering flexible working arrangements and encouraging the option of shared parental leave could be game-changing ways to mitigate disparities, supporting women’s career continuity and contributing to a fairer and more inclusive workplace. 

The path to equality in hospitality is not easy, and it requires a concerted effort from all stakeholders. Celebrating women’s achievements, creating supportive workplace cultures, and leveraging technological advances for flexible work options could be key steps in the right direction.  

If you’d like to discuss how we support all people in the hospitality industry then please get in touch on +44 20 8600 1166 or via the below details.  

 Dan Akhtar, Managing Director – HPG Advisory Services
+44 208 600 1166 / +44 7808 157796
dan@hpgsearch.com  

Chris Denison Smith, Managing Director – FM Recruitment
+44 20 8600 1160 / +44 7775 711923
chrisdenisonsmith@fmrecruitment.co.uk   

Guy Lean, Managing Director – Madison Mayfair
+44 20 8 600 1180 / +44 7813 009787
guylean@madisonmayfair.com  

Andrea Shaw, Director – FM Recruitment
+44 20 8 600 1160 / +44 7714 236469
andreashaw@fmrecruitment.co.uk 

 

 

Success Story – In conversation with Naureen Ahmed

Posted on by Katherine Wyles

Naureen Ahmed is a seasoned hospitality professional, a fervent community builder, an engaging storyteller, and the visionary founder of ‘Inspiring Women in Hospitality’.  

With a life journey that saw her living in four different countries by the age of 10, Naureen’s path to the hospitality industry felt predestined. Her academic pursuits led her to the EHL Hospitality Business School in Lausanne, where she felt an immediate kinship with fellow students, each with their own unique stories. 

Embarking on her career with a position at the Landmark London Hotel, Naureen quickly embraced the operational aspects of hospitality, setting the stage for a significant tenure at STR. Over 12 years, she transitioned through roles from analyst to head of departments, playing a pivotal role in transforming STR into the recognised brand it is today. Naureen’s leadership style is marked by inclusivity and a focus on building multicultural team environments. 

Recognising the underrepresentation of women in hospitality, Naureen launched the ‘Inspiring Women in Hospitality’ podcast to amplify female voices and inspire change within the industry.  

Her efforts expanded in September 2023 with the creation of the Inspire Community, a platform designed to foster support among women through mentorship and career development discussions. 

Can you share a significant challenge you faced in your hospitality career and how you overcame it? 

Advocating women’s empowerment is something I deeply care about. For me personally, one of my biggest challenges in the earlier years of my career was centred on speaking too quietly. The belief that hard work alone would get me noticed was a notion I held too closely, only to realise it was far from effective. I had to practise raising my voice, which felt like shouting to me, but it was the only way others could finally hear me. 

It involved pushing myself out of my comfort zone, especially in meetings where I forced myself to speak up, to make sure I was noticed. I learned the hard way that visibility is crucial for career progression. Looking back, I see how I could have approached things differently, particularly in how I shared my achievements and successes during one-on-one meetings with my manager—a practice I really underestimated at the time. 

The process of becoming more vocal and ensuring my voice was heard has become much more natural over time, but it still feels like a work in progress. It still takes time and practice, and it’s not about waiting for the perfect moment to feel ready. You just have to do it. 

What inspired you to create the ‘Inspiring Women in Hospitality’ podcast, and what do you hope to achieve with it? 

The inspiration for creating the ‘Inspiring Women in Hospitality’ podcast stemmed from my years at STR, where I was fortunate enough to interact with a diverse array of companies and individuals across the global hospitality industry.  

Despite encountering many incredible women, I noticed a significant gap in visibility; the industry’s leadership was predominantly male. This observation sparked a real desire to amplify the stories of these women, to create a platform where our voices could be prominently heard and celebrated. 

The concept for the podcast had been brewing since 2019, but it was the onset of the COVID-19 Pandemic, with all of us confined to our homes and all using Zoom, that helped bring this idea to life. It began as a passion project, but quickly evolved, and I’m about to do my 200th interview! 

 

My goal was always to ensure that every story, regardless of the individual’s level of experience, is heard. I believe everyone has the capacity to inspire, and by sharing these diverse journeys, I hope to create a sense of community and connection.  

The podcast aims to resonate with listeners, helping them see that they are not alone in their challenges and aspirations. Ultimately, I seek to foster a reflective space where we can pause, listen, and draw inspiration from one another. 

With joy being a core value of yours, what have been the most fulfilling and joyful aspects of setting up the Inspire Community, and how do you ensure that this stays central to the values of the business? 

Joy is at the heart of everything I do with the Inspire Community. The greatest joy comes from creating spaces where women can come together, share, and support each other, whether online or in person. It’s deeply fulfilling to facilitate these nurturing environments where open, judgement-free conversations allow us to celebrate our successes and navigate our challenges together. 

Maintaining this atmosphere of joy, positivity, and communal uplift is fundamental. It’s about ensuring we progress as a community, fostering an inclusive space where everyone’s growth is intertwined with mutual support. This commitment to collective upliftment and optimism is what I continually aim to embed in the core values of the Inspire Community. 

In your experience, how does the gender disparity in leadership roles within the hospitality industry impact the work environment and team dynamics? 

I’ve been fortunate to work in environments where gender balance was more or less maintained, even finding myself in teams at STR where women outnumbered men. My teams have varied over the years, from being all men to a mix, and coincidentally, by the time I left it was a team of all women, not out of design but based on talent. Personally, my approach has always been to hire the best candidate, regardless of gender. 

However, looking at wider research and insights, it’s clear that opportunities aren’t equally distributed between genders, with bias—often unconscious—playing a significant role. My aim is to raise awareness, educate, and challenge potentially biased decisions to ensure a more even distribution of opportunities. 

An interesting statistic from my interviews is that 51% of the women I’ve spoken to have started their own businesses, choosing entrepreneurship over navigating the complexities of corporate work-life flexibility. This trend underscores a need for more inclusive conversations around work arrangements, not just for women but for all caregivers, encouraging a shift towards more flexible work environments for both parents. 

In advocating for gender balance, it’s crucial to involve men in these conversations too. I’ve met many men in the industry who are strong advocates for gender balance. It’s important to engage with them, learn from each other, and work collectively towards uplifting everyone, finding solutions that benefit all, not just a select few. 

How has your personal leadership style evolved as you’ve navigated through your career?

It’s a bit challenging to pinpoint this, but I’d say it comes down to two things. The first is that my leadership style is incredibly flexible, tailored to the person standing right in front of me. This realisation came from understanding that everyone I work with brings a different set of experiences, backgrounds, and motivations to the table, and my approach needs to adapt to meet those diverse needs. 

The second, and perhaps the most pivotal shift in my leadership, has been recognising the role of empathy. For the longest time, I didn’t openly attribute my success in leadership to being empathetic. It wasn’t something that was traditionally highlighted as a key trait for leaders. But over time, I’ve come to see that empathy is what truly defines me as a leader. It’s allowed me to listen more intently, create a supportive space for my team, and understand their unique needs and motivations. This deep level of understanding has been crucial in helping each member of my team grow and develop in the direction they aspire to. 

What are the most significant challenges that women face in the hospitality industry today, and how does your platform aim to address these issues? 

We’ve all heard of the “old boys’ club” – a network that, frankly, doesn’t exist in the same form for women. At the same time, I’ve come across too many stories of women competing against each other due to the scarcity of leadership roles. This counterproductive mindset needs to change, and that’s where my platform steps in. We’re here to create a foundation for strong bonds and mutual support, to counteract these outdated dynamics. 

The community we’re building is not just about making connections; it’s a space for learning from one another. Each month, we delve into topics aimed at career development, offering practical insights that members can apply directly.  

Furthermore, recognising the gap in mentorship opportunities for women, we’ve initiated mentor matching to make these crucial relationships more accessible. It’s become clear to me that women often don’t have the same networking opportunities as men, especially those who juggle their careers with primary caregiving responsibilities. This limitation often restricts their ability to attend events and conferences, which are traditional networking avenues. 

By creating this community, we’re breaking down the barriers to networking and mentorship. We’re addressing challenges like building your profile and networking, both of which are essential for career advancement. Yet, it’s not just about what we can do individually; organisations also play a crucial role. They need to cultivate more inclusive cultures where everyone feels comfortable speaking up and sharing their ideas. If the environment doesn’t support openness, progress for anyone is stifled. 

This need for cultural change in the industry also ties into the broader issue of showcasing the diverse career paths within hospitality. Part of my motivation for the podcast was to highlight these opportunities, to show that there’s so much more to the industry than is commonly perceived.  

Organisations need to do a better job of marketing themselves as desirable places to work, focusing not just on customer satisfaction but also on being employee-centric. It’s about making the industry attractive to potential talent, and addressing the labour shortages by showcasing the variety and richness of careers available in hospitality. 

Looking ahead, what changes do you hope to see in the hospitality industry regarding gender balance and inclusion, and what role do you see the Inspire Community playing in this transformation? 

While some organisations and regions, not just in hospitality, have adopted quotas as a means to ensure diversity across the board, I must admit, I’m not a big fan of quotas. However, I do believe in the power of starting conversations and taking a hard look at the existing data within organisations to understand where the gaps and patterns of exclusion are. 

From my perspective, the focus should not solely be on recruitment but on nurturing and retaining the talent we already have, particularly women who have been invested in by their companies. It baffles me why any organisation would want to lose such valuable assets, especially considering the costs associated with hiring new employees versus retaining existing ones. 

Flexibility in the workplace is another area ripe for innovation, extending beyond the option of remote work to include flexible hours, part-time roles, and job sharing. Moreover, the approach to parental leave needs a broader perspective, encouraging leaders, especially men, to lead by example by taking their full leave if it aligns with the company’s values, setting a precedent throughout the organisation. 

As for the Inspire Community, I see it playing a crucial role in this transformation. Our community, predominantly composed of women in mid-career positions, represents the next generation of CEOs and industry leaders.  

My vision is to prepare and propel these women into leadership roles by fostering a strong support network, increasing visibility, and encouraging them to be vocal and recognised for their contributions. We aim to ensure that these women are not just filling positions but are also on stage, leading discussions, and gaining the recognition they deserve.  

The change starts with each of us, working together to create a more inclusive and balanced industry. 

To discuss how we can support your businesses with your overall people strategy or to access our full suite of human capital services through Hospitality People Group, please get in touch on Tel: +44 20 8600 1180 or directly with team below: 

Dan Akhtar, Managing Director – HPG Advisory Services
+44 208 600 1166 / +44 7808 157796
dan@hpgsearch.com   

Chris Denison Smith, Managing Director – FM Recruitment
+44 20 8600 1160 / +44 7775 711923
chrisdenisonsmith@fmrecruitment.co.uk    

Guy Lean, Managing Director – Madison Mayfair
+44 20 8 600 1180 / +44 7813 009787
guylean@madisonmayfair.com   

Andrea Shaw, Director – FM Recruitment
+44 20 8 600 1160 / +44 7714 236469
andreashaw@fmrecruitment.co.uk  

The Importance of Awards in the Hospitality Industry: A Balanced Perspective

Posted on by Katherine Wyles

Awards season is well and truly underway. With the Golden Globes, BAFTAs and Oscars all grabbing headlines at this time of year, it is an opportune moment to look at the impact awards can have on people strategy and overall business goals.  

Winning awards, receiving nominations or simply making a red-carpet splash can help shape reputations for years to come, drive business growth and set the bar for high standards.  

With awards bodies such as The Michelin Guide, Forbes Travel Guide, The Cateys and Hotel Cateys, the hospitality industry has a vibrant awards season which can have a significantly positive impact on hotels, restaurants, and the professionals within.  

However, like any system of recognition, there are considerations and the emotional, financial and time investment should be weighed up before committing to participate. 

In this article, we look through some of the details you may wish to consider before implementing an awards strategy. This could help you and your team make the right decisions for the future growth and development of your business, while continuing to prioritise your workplace culture.  

Michelin and Forbes: Setting Industry Standards 

The Michelin Guide and Forbes Travel Guide ratings are among the most coveted recognitions in the hospitality industry. They are awarded based on rigorous criteria that assess the quality of food, service, and overall guest experience. Inspectors do not announce their visits (either on arrival or departure) and the smallest details can have a significant impact on the rating. 

Benefits: 

  • Boost in Prestige and Business: Achieving such awards can significantly elevate a property’s status, attracting more guests and increasing revenue. A Michelin star, for instance, is not just a mark of culinary excellence but also a powerful marketing tool that can put a restaurant on the global map. 
  • Benchmark for Quality: These awards set very high standards, encouraging establishments to strive for excellence. They serve as a benchmark for quality, pushing the industry, and those in it, forward in terms of innovation, service, and culinary artistry. 
  • Establishing Trust: For guests and employees, these accolades are a mark of trust and quality assurance. When choosing where to dine, stay or work, awards from Michelin or Forbes can be decisive factors for those seeking high-end luxury experiences, or a workplace that aligns with their own values and ambitions. 

Considerations: 

  • Pressure and Stress: The pursuit of these awards can create immense pressure on owners and employees. The stress of maintaining standards for Michelin or Forbes evaluations can be intense, sometimes leading to a stressful work environment. 
  • Cost Implications: Striving for such high standards often comes with significant financial investment, which can be a challenge, especially for smaller, independent establishments. Many operators have argued that the higher revenues don’t necessarily lead to higher profit. 

Individual Awards: Recognising Personal Excellence 

Awards like the Cateys and Hotel Cateys celebrate the achievements of hospitality professionals, from chefs and managers to front-of-house teams. Entrants are nominated by peers and senior management and entries are submitted for judging by a panel of industry experts who volunteer their services. The ceremonies are often glitzy affairs in grand hotel ballrooms.  

Benefits: 

  • Career Advancement: Winning an individual award can be a significant boost to one’s career. It not only recognises talent but also opens doors to new opportunities, networking, and professional growth. From a recruitment perspective, there is no doubt that winning awards will raise an individual’s profile and attract attention from headhunters. 
  • Motivation and Morale: Such recognitions can greatly motivate staff, enhancing morale and fostering a sense of pride and accomplishment. They highlight the importance of individual contributions to the success of an establishment. 
  • Industry Benchmarking: These awards set benchmarks for individual excellence, inspiring others in the industry to strive for similar achievements. 

Considerations: 

  • Subjectivity: Unlike awards based on specific criteria and mystery guest visits, individual awards are often based on a written application, which can be more subjective, sometimes leading to debates over the deservingness of winners. 
  • Overemphasis on Recognition: There’s a risk that the pursuit of awards might overshadow other important aspects of the job, such as teamwork and guest satisfaction. 
  • Limited Recognition: With so many deserving candidates in the industry, individual awards can only recognise a few, potentially leading to feelings of undervaluation among others. 

Awards in the hospitality industry, whether for establishments or individuals, have a profound impact. They drive competition, encourage excellence, and provide a framework for what constitutes high-end service. For consumers, these awards simplify choices, offering a guide to exceptional experiences. 

However, it’s crucial for the industry to balance the pursuit of awards with the overall well-being of employees and the financial health of the establishment. The pressure to maintain or achieve these accolades should not come at the cost of employee well-being or lead to unsustainable business practices. 

Moreover, while awards are important, they are not the sole measure of success. Many outstanding establishments and professionals thrive without them, focusing on delivering exceptional experiences that resonate with their guests. Ultimately, the true measure of success in hospitality lies in the satisfaction and loyalty of guests, and the fulfillment and well-being of the staff who make those experiences possible. 

If you would like to chat to us about giving your people strategy the red carpet treatment, then get in touch on +44 20 8600 1166.  

Success Stories – In Conversation with Guy Lean, Managing Director at Madison Mayfair

Posted on by Katherine Wyles

This year, Guy Lean is celebrating his 20th anniversary at Madison Mayfair and, as such a stalwart hospitality industry, we thought who better to kick off our 2024 Success Story series. 

Having studied recreational management in college, Guy’s journey into recruitment was not a conventional one. His early experience at Royal Mid-Surrey Golf Club led to his first role in recruitment where he quickly realised the importance of nurturing personal connections as he carved his career path through sales, training and recruitment, with some help from Dr Seuss along the way. 

At Madison Mayfair, Guy’s focus goes beyond merely placing candidates in roles, but rather measured by their long-term achievements of these placements, underlining Guy’s commitment to nurturing meaningful and lasting relationships for both his candidates and clients alike. 

In this interview, Guy shares his rich experiences, insights, and perspectives on the recruitment landscape, offering valuable advice and observations that stem from a career built on genuine connections and a deep understanding of the industry.

Please tell us more about your career path and how you become known as one of the best-connected recruiters in the hospitality industry. 

Recruitment isn’t really one of those careers that you study in college and then start head-hunting. Like many of my peers, I fell into it somewhat. After finishing my studies in recreational management, with the initial goal of managing a leisure centre, I found myself at The Royal Mid-Surrey Golf Club in Richmond. There, I was not only involved in selling events but also managed the bars and looked after the events themselves. This was my first real exposure to high-quality hospitality and the art of connecting with people on a daily basis. 

While at the golf club, a member noticed my potential and asked what my future plans were. He offered me a job at his recruitment firm back in my hometown, Cambridge. I started placing salespeople in various industries including agricultural machinery and pharmaceuticals, working with anybody that sold anything across East Anglia. This job was a real ‘school of hard knocks.’ It involved picking up the phone hundreds of times a day, making connections and really understanding sales.  

I then moved to work for a pharmaceutical recruiter, specialising in the niche area of tamper-evident packaging. This was a significant step in my career, as I eventually became the number one recruiter in the US, while still based in Europe. This led to me being headhunted by Humana International to help sell franchises and teach franchisees to become head-hunters in their respective fields. Humana was eventually sold to an even bigger company called MRI and I became their Global Head of Training while also out there selling franchises. 

Mentorship played a crucial role in my career development. I was fortunate to work with and learn from prominent figures in the recruitment industry, like Tony Byrne and Steven Finkel. These experiences not only shaped my skills but also instilled in me the importance of mentoring others. I’ve trained and hired many individuals over the years and take pride in seeing them achieve great success in their careers.  

In recruitment, statistics play a significant role, even though it’s very much a human-centered field. It takes about 75 conversations to find the right person for a job, someone who would truly excel in their role.  

Our approach at Madison Mayfair involves understanding and connecting with a vast network of people – around six and a half thousand in each market. These individuals are not just clients or candidates, but they are all people with unique needs and aspirations. We are proud to say that most of the clients we work with have been candidates in the past.

Can you share your top tips for candidate who might be preparing for interviews in 2024. 

I’ve always said that when we’re interviewing, we’re all in sales. Regardless of what role you might be applying for, and whoever you are in front of, you’re selling.  

I think you have to follow a sales process and preparation is everything. I would suggest reading a sales book and my top recommendation is “Green Eggs and Ham” by Dr. Seuss which gets to the essence of sales faster than any other book.  

From there, researching the company and having excellent questions are great ways to build rapport. Technically, most candidates who get to interview stage could probably do the job, but in most cases, it’s the most enthusiastic person who gets it.

Are there any industry technologies that you are excited to see continue to develop. Conversely, are there any industry technologies you would prefer never to see again? 

I believe that certain technologies, particularly those aiding in research and networking, are incredibly beneficial. LinkedIn, for instance, has significantly transformed the recruitment landscape. Its ability to facilitate connections and provide instant access to individuals’ backgrounds is invaluable. This tool is essential in our industry, to the extent that if someone isn’t present on LinkedIn, they might not even be considered a viable candidate. 

In terms of communication preferences, I’ve noticed a generational shift. Younger individuals often prefer text messages or platforms like WhatsApp over traditional emails or phone calls. These tools have been effective in connecting with people in ways they are more comfortable with. 

However, there’s a downside to technology when it oversteps and replaces human interaction. In our industry, which is very personal and deals with people’s careers and lives, losing the human touch can be detrimental. For example, when companies provide feedback or rejection via email, it can feel impersonal and inadequate. Human connections are vital, and technology should not overshadow them. 

While I am relatively new to AI and its applications, I can see its potential, especially in speeding up processes like research and initial connections. It’s a remarkable tool for gathering information and bringing back relevant findings quickly. However, the recruitment process in hospitality still requires a balance. While technology can expedite certain aspects, the final stages of interviewing and truly understanding what people want and need must be done through direct human interaction, either face-to-face or via video conferencing. This balance ensures that while we embrace the advantages of technology, we do not lose the essence of personal connections that are fundamental to the hospitality industry. 

Business travel is getting closer to pre-pandemic levels of spend, but many analysts, feel that it will never be the same. Do you feel that candidate expectations have changed regarding travelling for business? 

I believe there are two main elements to consider. Firstly, there’s a heightened focus on the carbon footprint. People have become more environmentally conscious than ever before, and a genuine shift in focus towards sustainability is influencing decisions to travel less. 

Secondly, the importance of maintaining relationships plays a significant role. While the pandemic demonstrated the effectiveness of video conferencing for meetings, which had not been widely popular before, certain aspects of business, such as the MICE (Meetings, Incentives, Conferences, and Exhibitions) market, team building, and relationship building, still necessitate physical travel. In these areas, face-to-face interactions are essential and irreplaceable. 

An interesting observation I’ve made is that fewer people are now relocating for work post-pandemic. There seems to be a change in mindset where individuals are more content to stay in their area, seeking a different balance in life and work. This contrasts with the previous norm, especially among general managers in hospitality, where career advancement often meant travelling globally to gain diverse experiences. Now, many seem more satisfied with remaining in their local area. 

However, this shift in perspective towards travel and relocation seems to vary between generations. For instance, I’ve noticed that younger generations, like my two sons in their early 20s, are driven by experiences and the desire to travel. They work hard and then use their earnings to travel extensively. This love for experiences and exploring the world seems more pronounced among them, whereas the older generation appears less driven to relocate or travel extensively for work purposes. 

What do you feel are the most important traits for hospitality leaders to demonstrate? 

For me, the most important traits for high-level leaders centres around emotional intelligence. Leaders who exhibit high emotional intelligence can better communicate with their team, providing information effectively and motivating their teams while displaying empathy and impeccable social skills.  

The most successful leaders generally display a strong self-awareness of their own emotions that helps them understand that people often leave jobs due to poor relationships with their supervisors or a lack of connection with the leadership. They can create work environments where employees feel valued, understood, and motivated, leading to better retention and a more positive workplace culture. It’s not always about monetary compensation but more often about the quality of the work environment and the relationships within it. 

What do you feel has been your biggest achievement and why?

I’ve placed over a thousand people in their careers, many of whom have risen from their first jobs to C-level positions but I feel my biggest achievement has been my work with people and teams. I’ve had the incredible fortune of working with extremely talented individuals throughout my career, and the amount I’ve learned from these experiences has been immense.  

At Madison Mayfair, we have a unique focus: we aim to ensure a return on investment for the candidates we place. Our measure of success isn’t just about filling positions. We look at their progress after 12 months. We follow up to see if they were promoted, if they hit their KPIs, met their targets, or received bonuses. I’m particularly proud of this aspect because it signifies that we’re genuinely contributing to the career growth and success of individuals and our clients’ businesses. 

I am also very proud of the reputation and regard Madison Mayfair has earned in the marketplace. We’re a boutique firm and take pride in the quality of our work and the lasting relationships we build.  

Often, candidates come back to us as clients, and companies return to us for our services, which is a testament to the effectiveness of our approach. Just recently, I had a conversation with someone who had been with a company for six years and reached out to us because of our longstanding work with them.  

This kind of feedback and repeat collaboration reinforce that we’re doing something right. I’m extremely grateful for the great teams we have and the collaborative efforts that contribute to these successes. 

What is the best piece of advice you have been given on your career journey?

I think the best bit of advice I’ve ever been given is, “put your brain into gear before you put your mouth into motion.” 

Madison Mayfair focuses on forging strong, long-standing relationships with clients and candidates, often over the lifetime of multiple roles, to ensure we can find creative and innovative solutions to the challenges we all face in the hospitality industry.  

 To discuss how we can support your businesses with your overall people strategy or to access our full suite of human capital services through Hospitality People Group, please get in touch with Guy Lean on Tel: +44 20 8600 1180,  Mob:+44 7813 009787 or Email: guylean@madisonmayfair.com  

UK Hospitality Trends: What to Expect in 2024

Posted on by Dan Akhtar

Despite the challenges that the UK hospitality industry continues to face, owners, operators, and investors have many reasons to look forward with great optimism.  

While we specialise in people strategy and recruitment, Hospitality People Group is committed to continuously exploring the full hospitality landscape to identify trends and insights to support our clients in finding the best solutions for their businesses.  

Here are some of the key themes that we foresee will impact the hospitality sector in 2024. 

Hotel Investment
Investment trends in the hospitality sector are a valuable longer-term indicator of expected performance, and confidence in the UK market is booming. The rapidly increasing hotel supply in London, but also Edinburgh, Glasgow and Manchester, is being driven by both domestic and international demand. According to a recent report by Deloitte, London is expected to become the most attractive European city for hotel investment in 2024, with 11,000 new rooms planned to open.  

Outside of London, Edinburgh has the largest supply of five-star hotels in the UK with over 60 active hotel projects that are due to add around 5,000 rooms to the city’s hotel market. Some notable openings include  W Hotel, Tribute (expected to open in August 2024), and the Hyatt Regency Edinburgh Marina Hotel. 

The increase in supply will put ever-increasing pressure on the recruitment market, so like last year’s Battle for Retention, businesses that manage to retain their valuable employees may be better positioned than those that don’t. 

Travel Numbers
With the latest passenger travel figures from Heathrow, there’s a strong indication that 2024 will mark a significant milestone in the travel industry. For the first time since the pandemic, the total number of passengers passing through Heathrow is projected to surpass the figures recorded in 2019.  

A closer look at the international arrival data also reveals some intriguing trends. Travel from the Middle East and North America has not only recovered but has also exceeded the levels seen in 2019. The Asia/Pacific region is still lagging, with approximately 1.5 million fewer travellers in 2023 compared to 2019, but the majority of this shortfall occurred in the first half of 2023, suggesting that the gap is closing. While there is a disparity across different regions, the trend is positive and offers valuable insights for the hospitality industry as it welcomes more global travellers in 2024. 

Super Luxury Hotels 
The last year has seen a number of high-end luxury hotel openings in London, including The Peninsula and Raffles London at the Old War Office. Next year will see a new Mandarin Oriental and Maybourne’s new, all-suite, The Emory Room. Rates for these hotels all start at £1,000+, and this minimum rate expectation has already become a standard expectation for existing luxury hotels. According to a recent article from the Guardian, there is a new era of exclusivity, and with an expected 18% more visitors to London forecasted to spend 25% more than last year, there is an expectation that these higher rates will continue to attract those who can afford them. 

With these increasing rates and guest expectations, there will be skyrocketing costs and often unpredictable increases. At the highest luxury level, these costs can be far more easily passed onto guests, but guests at anything less than ultra-luxury hotels are likely to be a little more price-sensitive.  

Inflation and Rising Costs
The UK hospitality industry continues to face challenges due to inflation and rising costs. The 9.8% minimum wage increase to £11.44, which comes into effect in April 2024, will put pressure on the wage structure at all levels in hospitality. Many businesses may have to raise their prices again to cope with the increased costs. Some may consider reducing employee hours, but given the demand for talent, this could be a risky solution. Inflation, which is expected to remain above 3% by the end of 2024, has also increased the costs of raw materials and energy. Energy costs, in particular, have soared by more than 50% since 2021, making it difficult for hospitality businesses to operate profitably and sustainably.  

Just as strong financial leadership was so crucial during the pandemic, the direction now needed to ensure that the increasing revenues expected in 2024 translate into increased profit, will be essential. 

Hospitality Recruitment
The hospitality sector has been struggling to fill vacancies for some time, but the situation has been exacerbated by shifting demographics, the pandemic, and Brexit. With nearly half a million less 18 year olds than 10 years ago, the combination of the pandemic and Brexit has made it much more difficult to replace these potential employees, while skills shortages have made it harder to find qualified employees for specialised roles.  

Unfortunately, the recent announcement regarding the increased threshold for minimum salary needed to get a skilled worker visa is likely to increase pressure on this shortage. According to Kate Nicholls, UKHospitality’s Chief Executive, “There were 8,500 hospitality visas issued last year, which helped bring in talented chefs and managers of the future. Around 95% of those would no longer be eligible under these plans (an increase from £26,200 to £38,700), despite being offered competitive salaries.” 

Once again, the Battle for Retention is an increasingly important strategy for all hospitality businesses as they try to minimise employee turnover with a strong workplace culture.  

We hope this article will provide you with some insights and inspiration for 2024. 

If you are looking for a partner to support your people strategy in 2024, then please get in touch. 

Dan Akhtar, Managing Director – HPG Advisory Services
+44 208 600 1166 / +44 7808 157796
dan@hpgsearch.com 

Chris Denison Smith, Managing Director – FM Recruitment
+44 20 8600 1160 / +44 7775 711923
chrisdenisonsmith@fmrecruitment.co.uk  

Guy Lean, Managing Director – Madison Mayfair
+44 20 8 600 1180 / +44 7813 009787
guylean@madisonmayfair.com 

Andrea Shaw, Director – FM Recruitment
+44 20 8 600 1160 / +44 7714 236469
andreashaw@fmrecruitment.co.uk

2023: A Year in Review and the Road Ahead

Posted on by Katherine Wyles

With just a few weeks left in 2023, it’s an opportune moment to reflect on a year that has been as challenging as it has been rewarding for the hospitality sector.  

This year, the hospitality industry has continued to demonstrate resilience, adaptability, and a commitment to excellence that has helped to build confidence amongst operators, owners and investors.  

The team at Hospitality People Group, including Madison Mayfair, FM Recruitment and HPG Advisory Services are proud to have worked alongside our clients to navigate this evolving landscape. This experience, together with a commitment to share ideas and continuously learn from industry specialists around the world, has given us a unique perspective to share insights to help support our clients’ with their people strategies.  

Our team travelled more this year and attended conferences including IHIF in Berlin, FHS in Abu Dhabi and AHC in Manchester. With an even more bustling travel diary for 2024, we have a front-row seat to the vibrant world of hospitality. 

The Battle for Retention
One of the most pressing issues this year has been the ongoing battle for talent. The hospitality industry, known for its high turnover rates, has faced an unprecedented challenge over the past few years. The impact of a demographic shift, with nearly half a million less 18 year olds than 10 years ago, was exacerbated by the impact of Brexit and the pandemic. In a time where recruitment is far more challenging, there has been a renewed focus on retention in order to manage employee turnover. The key to this success has been in promoting stronger workplace cultures and recognising that our employees are a far more valuable part of what we offer guests than may have been previously considered. Innovative strategies, including enhanced development programs, competitive compensation packages, and a focus on workplace culture, have been pivotal. When we invest in our people, they, in turn, invest their loyalty and passion in our services. 

Success Stories
While we are keen to support our clients and their retention strategies, our core business has always revolved around executive search and we work closely with our long-standing clients and a network of candidates to find ideal matches for available roles. This year we were delighted that some of the candidates we placed took time out of their busy schedules to be interviewed in our Success Stories series. Imran Bhatia, Claire Llewellin-Davis and Natasha Eldred all joined us in conversation to discuss their achievements, inspirations and challenges, as well as to share tips and insights for those who might be considering a career in hospitality. 

AI’s Role in Hospitality
The influence of Artificial Intelligence (AI) has been felt across most industries in 2023, and hospitality is no different. While talk about the Metaverse has diminished due to setbacks from major companies like Meta and Disney, AI has gained significant traction, becoming more integrated into everyday technology. AI’s potential in the hospitality industry lies in automating routine tasks, thereby enhancing efficiency and allowing employees to focus on more value-adding strategic and/or guest-facing roles.  

This shift may go on to change the nature of the skills and roles required in the industry. In recruitment, AI can streamline processes, reduce bias, and improve candidate engagement, although concerns about AI’s potential to overlook valuable candidates remain. Despite AI’s advancements, we believe that it will not replace human consultants but rather augment their capabilities, allowing them to concentrate on relationship-building, retention, and culture, thereby adding more value to businesses and candidates. 

Hotel Investment Trends
The Hospitality People Group team attended a number of hotel investment events throughout 2023 and discovered a number of key themes that ran through them all. The luxury hospitality sector in particular, is experiencing a robust and continuing recovery. Despite the impact of inflation, by focusing on personalised and exclusive experiences to meet the evolving demands of luxury travellers, hotels have been better able to enhance guest satisfaction in this segment, while raising average rates.  

Environmental, Social, and Governance (ESG) considerations have continued to grow more central to the industry and are driven by increasing consumer demand for sustainable practices and a willingness from hotel investors to future-proof their investments in the long term. The integration of ESG strategies into operations is evident, though challenges remain in aligning consumer expectations with their willingness to pay for these practices. A recent article from Hospitality Investor also pointed to the increasing risk presented by climate change, but we also learnt that some regions are also using it as an opportunity to extend the summer season.  

We have also seen some diversification of the leisure hospitality investments, moving beyond traditional models such as beach and golf resorts to include more varied offerings like wellness retreats and Alpine resorts. This trend highlights a broader investor interest in more sustainable, long-term leisure assets. 

Despite challenges in the hotel transaction market and financing landscape, including the gap between seller expectations and buyer capabilities, there remains optimism about the market’s resilience and potential for growth. These trends collectively signal a dynamic phase of innovation and opportunity in the hospitality sector. 

The Evolution of Hotel Asset Management
As the hotel investment scene has developed, the role of the Hotel Asset Manager has become essential, serving as a critical link between investors, owners, and operators. In 2023, this position became central to maximising profitability and operational efficiency, while enhancing guest experience and optimising the return on investment. This comes at a time for hotel investment, when investor interest is peaked by industry recovery, yet continues to be mindful of the recent challenges the sector has faced.  

Hotel Asset Managers are instrumental in driving financial performance, identifying revenue opportunities, and implementing strategies to safeguard profits in a competitive market. They play a key role in risk management and investment strategy, evaluating market conditions to inform investment decisions and risk mitigation. Additionally, they focus on operational efficiency and quality assurance, ensuring the hotel meets evolving guest expectations and maintains high service standards. Together, this reflects a shift from traditional owner-manager dynamics to a more specialised, strategic approach, designed to appeal to the market. 

Looking Ahead: 2024
We look forward towards 2024 with excitement. With plans to attend events in Berlin, Florida, Riyadh, New York, Dubai, Rome, Manchester, and London, we are committed to staying at the forefront of industry trends and innovations. These events are not just opportunities for learning and networking but also a testament to our dedication to supporting and connecting the hospitality world. 

The challenges we have faced in this industry over the last few years have only strengthened our commitment with a renewed sense of purpose and a clear vision for the future – where we can help support people strategies that align seamlessly with our client’s business goals. 

Here’s to a new year filled with more travels, learnings, and opportunities to redefine the essence of hospitality. 

If you would like to have a chat about your people strategy for 2024 and beyond, please get in touch on Tel: +44 20 8600 1166.  

Insights from The Resort & Residential Hospitality Forum 2023

Posted on by Dan Akhtar

With the Resort & Residential (R & R) Hospitality Forum recently taking place in Lisbon, we delve into some of the key insights to uncover opportunities in leisure hospitality investment in the Mediterranean and Southern Europe.

This event is run by Questex, the same team behind the International Hotel Investment Forum (IHIF), which Dan and Mara attended in May, and the Annual Hotel Conference (AHC), which was attended by our colleague, Guy Lean, in September.  

Here is a brief summary and some ke takeaways from The Resort & Residential Hospitality Forum 

Attendance and Demographics
The forum saw a total of 390 delegates, with an impressive 58% being first-timers. Significantly, 98 of them, which is over 25% of the total count, were investors, proving that leisure hospitality continues to draw attention from varied capital sources. 

Theme: Leisure to the Core
This conference has now evolved from its traditional emphasis on beach resorts. It includes a wide variety of leisure offerings like wellness retreats, Alpine resorts and hotels which used to be more corporate-centric but are now welcoming leisure guests. This shift also indicates a new wave of investors who perceive these assets not as fleeting opportunities, but as long-term investments. 

The Market’s Perception of Leisure Hospitality
One of the most discussed topics was the resilience of the leisure hospitality sector. Despite the numerous challenges thrown at the travel industry in recent times, including wildfires, air traffic control strikes, and even the aftermath of COVID-19, the demand for leisure hospitality remains strong.  

This is evidenced by statistics presented by STR, Hotstats, and tourism economic analyses. This steadfast demand, combined with an observed savings glut during the pandemic, suggests there’s ample room for optimistic growth projections. 

Investment Trends
Patrick Whyte, from Hospitality Investor, shed light on emerging investment patterns. He highlighted the contrast between struggling transaction volumes in Northern Europe and flourishing ones in Southern Europe, particularly in countries like Portugal, Spain, and Greece. This is likely because of owner-operators and family businesses seeking exits or joint ventures after facing post-COVID challenges. 

Supply Evolution and Professionalisation
The forum also touched upon the professionalisation of assets. Opportunistic funds, for instance, are keen to understand how to better position an asset to appeal to long-term buyers. A significant part of this involves understanding modern demand, where travellers seek unique and local experiences, rather than traditional resort offerings. 

Climate Change and Extending Seasons
Climate change, which has its set of challenges, is inadvertently offering opportunities by reshaping travel seasons. Investors and hoteliers are capitalising on this by expanding resort seasons, finding profitability in previously off-peak months. 

Branded Residential Growth
The conference highlighted a growing interest in branded residences, with large hotel brands like Marriott and Wyndham leading the way. However, they face competition from luxury non-hospitality brands seeing potential in this market. 

Destinations in Focus
Southern European destinations are garnering the most investor attention. Greece, particularly, stands out due to supportive government policies and market conditions. Additionally, emerging markets like Montenegro, Bosnia, Slovenia, and Albania were discussed as potential growth areas. 

Experiential Elements
Lastly, the forum emphasised the importance of offering a holistic experience to its delegates. From rooftop receptions to hotel tours, participants had the opportunity to truly experience the best of Lisbon’s hospitality. This reflects the increasing trend for more experiential localised experiences that customers are demanding. 

Summary
In conclusion, the R&R 2023 was a comprehensive showcase of trends, challenges, and opportunities in the leisure hospitality sector for the Mediterranean and Southern Europe regions.  

With a broad range of speakers on various topics, it clearly has its finger on the pulse of the industry and the digital debrief offered through multiple videos on the R & R Digital page is an extremely valuable asset.  

Next year’s event is moving to its new home in Athens, tipping its hat to Greece’s growing influence in the hospitality industry. 

If you would like to read more about our personal experiences at International Hotel Investment Forum, Annual Hotel Conference or Future Hospitality Summit this year, then please click on the links.  

If you would like to discuss any of the topics shared in this article or would like to speak to us about your people strategy and our advisory services, then please get in touch. 

Dan Akhtar, Managing Director of HPG Advisory Services +44 20 8600 1166 / +44 7808 157796 / dan@hpgsearch.com

The Middle East’s Undimmed Investment Lure: Future Hospitality Summit 2023 in Abu Dhabi with Andrea Shaw and Tairona Lattanzi

Posted on by Katherine Wyles

Last week, Andrea Shaw and Tairona Lattanzi attended the Future Hospitality Summit (FHS) in Abu Dhabi, which attracted industry professionals from around the world to explore, discuss, and decipher the current status and forward trajectory of the hospitality sector in the Middle East. Here, Andrea shares her comprehensive insights and experiences from the summit, providing a nuanced look at the opportunities, challenges, and emergent trends in the industry. 

Investment Landscape
Contrary to the whispers at the International Hotel Investment Forum (IHIF) earlier this year that suggested that investment opportunities in the Middle East were reaching a plateau, this event hinted at a far from exhausted investment landscape there. Saudi Arabia, Qatar, and Abu Dhabi have all accelerated their ambitions in recent years, but we found that this event had a considerable focus on Dubai and how it has astutely steered itself to hold substantial weight in the global hospitality industry, luring investors with its infrastructural marvels, technological advancements, and dynamic customer base. In particular, the Russian and Chinese markets are being eyed as potential catalysts for sustained investment. 

Russian and Chinese Investment
As the global ramifications of the war in Ukraine continue, Russian investors and tourists are tending to spend considerably longer in the region. A strong relationship seems to be budding between Russian nationals and the Dubai hospitality sector, signalling a niche for tailored services and more authentic experiences. By understanding their preferences, spending habits, and cultural nuances to craft offerings that seamlessly align with their expectations, the hospitality industry in the region can maximise profits in a market that holds an uncertain future. 

Touted as a colossal market with untapped potential, the Chinese traveller stands on the cusp of being a significant player in Middle Eastern hospitality. While a large section of the market is yet to re-embrace travel after the pandemic, there is a significant expectation that this will happen soon, and hospitality operators are eager to make preparations for it yet cautious enough to protect costs and cash flow in the meantime. Again, understanding their buying behaviours, shopping habits, and technological usage (like their predilection for platforms like WeChat and Weibo) will be vital to winning market share. Tailoring marketing strategies and operational aspects to accommodate and attract this segment could pave the way for a torrent of opportunities in the not too distant future. 

Sustainability 
A discernible thread through the summit was the heightened emphasis on sustainability. Dialogue with investors underscored the imperative of embedding eco-friendly practises into the very early stages of planning and construction. The financial and operational challenges of retrofitted adaptations seem to be rather easier to negate in the Middle East, with a stronger new build culture than they might be in other parts of the world. While sustainability was being pushed as a key theme during the event, the buy-in from attendees was sometimes disappointing given the low turnout at these sessions. 

With authenticity playing such an important role in appealing to customers, it seems clear that a robust and transparent environment, sustainability, and governance strategies will be crucial in appealing to both internal and external audiences. Branded hotels now tend to include operational standards to address basic ESG requirements that appeal to third party booking platforms, including corporate booking partners, and this could add to the appeal of branded hotels, which we will discuss in further detail below. You can also read more on the key role ESG can play in recruitment and employee retention, which Hospitality People Group published recently. 

Food and Beverage Conundrum
With the Global Restaurant Investment Forum (GRIF) taking place on the first day of FHS, the food and beverage domain garnered unanimous attention. An interesting debate that peppered the sessions concerned the question of how food and beverage outlets should be managed. While some advocated for the inclusion of celebrity chefs and high-profile names, others veered towards third-party management or even in-house handling of F&B. The strategic choice in this regard can significantly mould the guest experience and brand positioning in the hyper-competitive market, but the general consensus was that there was no consensus, which suggests that any of these management strategies can be successfully implemented in the right circumstances. Unfortunately, this also suggests that any of these can fail when the conditions aren’t suitable. 

Brand vs. Independent
In a similar vein to the question of how best to manage food and beverage outlets, the summit raised the topic of affiliating with established brands or steering through the market as independent entities. The Middle East, with its penchant for brand recognition and associated prestige, seemingly tilts the balance in favour of brand affiliations. However, there’s a sprouting of independent hotels, no doubt hoping to appeal to the growing trend for unique and authentic experiences, and they seem keen to challenge this assumption. There didn’t seem to be any evidence so far to measure the impact of this, but with so many large hotel operators with newer brands that offer the best of both worlds (e.g., Marriott’s Autograph Collection or Hilton’s Curio Collection), we may see this develop over the next few years. 

Conclusion
Andrea and Tairona’s time at the Future Hospitality Summit was a journey through a landscape of ideas, opportunities, and genuine connections. The spirit of the region, ever-resilient and ambitious, continues to embrace the global challenges in the hospitality industry, and this event will continue to linger in the minds and strategies of those hospitality professionals, operators, owners, and potential investors who attended. 

If you would like to discuss any of the topics that have been discussed here or any other elements of your people strategy, then please do not hesitate to contact Andrea Shaw at  andreashaw@fmrecruitment.co.uk or on +44 20 8600 1160. 

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