Category: TV Briefings

Briefing: Stories make brands stand out

Posted on by Guy Lean

This month two historic hotels have reopened with a flourish.

After a four year multi-million renovation, the Ritz Paris has opened its doors once again, and The Watergate Hotel in Washington has been renovated and reopened having fallen into disrepair nine years ago. A great brand story or an innovative product can help a hotel stand out in the competitive hospitality market. For properties with less history; location, technology and style can give a product more value.

Watch hospitality experts discuss differentiation in the industry:

The Ritz Paris is an iconic hotel and is bold enough to claim that ‘The Ritz is Paris’ on its website. Reopening after four years is a story in itself but the brand has spared no expense on making the relaunch a classy affair, even making a short dramatic silent film ‘Behind the Door’.

Brand values and credentials can also set a hotel apart. Starwood’s uniquely eco brand ‘Element Hotels’ is on track to more than double its North American portfolio by 2018. This was the first major hotel brand to mandate that all properties pursue sustainable certifications.

Jumeirah as a brand is hinged on having the ‘highest standards of truly Arabian hospitality’ and its story is tied in with the development of Dubai’s hotel industry itself. The Jumeirah website claims that it is these ‘standards of service that have made Dubai exceptional in what it offers to visitors.’

Technology and online presence can be another great differentiator, as show by the Ritz Paris in it relaunch site and brands such as citizenM.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Europe still on the up

Posted on by Guy Lean

CBRE hotels has reported that investment into European Hotels totalled €3.7bn in the first quarter of 2016. PwC’s latest predictions show that Eurozone GDP will continue to expand by around 1.6% in 2016 and 1.7% in 2017. Strong investment from North America and high visitor numbers from the US are expected to continue. However, this year was always unlikely to beat 2015’s record performance, and Q1’s transaction volumes have indeed reduced by 30% year on year.

In these videos hospitality experts discuss the European Market in 2016:

According to CBRE, hotels continue to have 8% share of European real estate. Performance does of course vary in the different markets across Europe. CBRE’s report shows that Belgium and Italy have had an increase in transactions in Q1 2016 whereas UK and France have seen a decline. CBRE says Germany is becoming the most attractive Market and Eastern European cities have more room for growth than cities in the west.

Growth in Europe is levelling out and will slow into 2017 and beyond according to PwC. PwC is predicting that Rome will have the biggest RevPar growth in 2016 at 19.2% however in 2017 this will drastically slow again in 2017 (-14.9%) when Dublin will have the biggest growth at 8.2%. The report says that in 2017, most cities, except Geneva and Zurich, will see further ADR growth.

There are a number of geopolitical issues that could also affect growth including Brexit, which our experts discussed in a recent hospitality briefing.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Bigger is better for competitive companies

Posted on by Guy Lean

In April this year, shareholders from both Marriott and Starwood voted to approve a merger of the two companies, which will create the world’s largest hotel group. In the same month, Shanghai based Home Inns Hotel Group completed a merger with Hong Kong based BTG Hotels Group.

The industry is reshaping to meet the evolving needs of the consumer and to stay competitive. While these international hotel groups are growing to record levels more sub-brands are being created within them. In these videos, four experts discuss industry consolidation and the reasons behind it:

Consolidation is widely accepted as one of the big trends for 2016. So why are these companies joining up?

The Marriott – Starwood Merger means that they will be a force to be reckoned with. For example, it will allow them to strongly compete in new spaces. An early press release about the merger from November 2015 states also that merging with Starwood, which has ‘first mover advantage’ in the lifestyle segment will make the combined companies a leader in this space.

The vote shows stockholder confidence from both sides but the companies had to also convince loyalty members that the merger be positive. While the loyalty programmes will not immediately combine, in a statement to its reward members, Marriot said that it was excite to be able to ‘Give our members access to our collective portfolio of 5,500 hotels and resorts in more than 100 countries’.

And, importantly for any business, it will save them money. Again in the November statement Marriott said; ‘Marriott expects to deliver at least $200 million in annual cost savings in the second full year after closing.  This will be accomplished by leveraging operating and G&A efficiencies.’

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Design = Context and Lifestyle

Posted on by Guy Lean

Last month Marriott opened two new AC Hotels, ‘bringing the brand’s European design and style to the UK for the first time.’ Earlier this year the Grand Hyatt Rio De Janeiro opened. Hyatt had employed an internationally acclaimed interior designer in order to ‘set a new standard of luxury’. Meanwhile Starwood is a majority investor of Design Hotels™, a selective membership group for original and extraordinary hotels.

Why is design such a big selling point for these major groups? As our experts discuss in these videos, it can be a vital aspect of brand relevancy:

Marriott’s two new hotels are a 142-room AC Hotel Manchester Salford Quays and The 90-room AC Hotel Birmingham City Centre, situated at The Mailbox shopping area. According to Marriott the AC brand is ‘based on a belief that purposeful design can enrich lives’. Each hotel features a Lounge and a Library. One area is designed to be a lively hub other designed as a quite space, but both intended to offer a place for creativity and socialisation.

Internationally acclaimed interior designer Yabu Pushelberg, designed the accommodation at Grand Hyatt Rio de Janeiro in Brazil with the local assistance of Brazilian designer firm Anastassiadis Arquitetos. Also, acclaimed Brazilian architect Arthur Casas designed 3 signature restaurants for the property. Hyatt says that, ‘the hotel is meticulously designed to exemplify the Grand Hyatt brand’s signature level of grandeur with an abundance of options for creating spectacular experiences.’

The Design Hotels™ website allows you to search and book a holiday from a specially selected listed properties. It says that more than 400 hotels apply for membership with Design Hotels™ each year, but only about 5 percent of them are approved. Elements that influence this decision are ‘thought-provoking design and architecture; integration into the local scene; a strong identity; cultural and environmental responsibility; and the people behind the property’, among other factors.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Political risk from ‘Brexit’

Posted on by Guy Lean

The EU referendum, which will take place in just under a month in the UK, has been the cause of much political debate. Fears have been stirred up about the potential negative impact of either outcome. But how has this affected investor sentiment and how would the UK’s exit from the European Union impact business in the hospitality industry?

Four hospitality and investment professionals discuss ‘Brexit’:

The referendum is just one example of how political uncertainty can affect business. Any potential disruption or change to regulations and the way business is done could be classed as a ‘risk’ that need to be factored into a business’s decision making at least in the short term.

Some examples of warnings arising throughout the campaigns, about the longer term effects of the decision, are that Leaving the EU would ‘spark year-long recession‘ and that Staying would increase the UKs population and put the NHS under “unsustainable” pressure.

Last year ICSA reported that 63% of boards said a UK exit from Europe could be potentially damaging to their company.

The European Union – often known as the EU – is an economic and political partnership involving 28 European countries. The UK’s exit from the EU has the potential to impact everything from immigration, to the environment, to procedure around working abroad, to law making itself.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Finding your place in hospitality

Posted on by Guy Lean

Statistics from the Bureau of Labor Statistics show that 27% of baby boomers held 15 or more jobs throughout their working lives. Will the millennial career path look the same? Boston College Center found that 64% of the millennials have established career goals for themselves, and 58% would prefer to stay with one employer and advance internally.

Whatever the journey looks like it takes time to build a career and find the right role. These videos discuss the many ways to have a great career in hospitality:

So how are today’s up comers approaching their careers? Boston College’s research ‘How Millennials Navigate their Careers’ revealed new insight into their mind-set and suggest that millennials may have more traditional ambitions than often thought. The survey revealed that the top three approaches to job hunting by millennials was to be referred by a friend, to research potential employers, and to search for posting on a company website.

The survey suggest that today’s young candidates are self-aware with 94% agreeing or strongly agreeing that they knew the work skills they possessed. More than 84% knew what was important to them in their careers.

In terms of what they are looking for in a role, career growth opportunities, salary and benefits were most important. 44% agreed that it they tend to make career choices based on their own values and interests rather than the choices provided by my employer.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: The measured approach to decision making

Posted on by Guy Lean

According to a report by CIMA; ‘72% of organisations admit to at least one strategic initiative failing in the last three years as a result of flaws in their decision making process.’

It is said that we make 35,000 decisions a day. In a fast evolving business day, we need to have enough confidence in our information and processes to make decisions quickly. In the longer term, important strategic changes need to be considered and implemented carefully, as our experts discuss in these videos:

Our industry is changing fast, in hospitality, time sensitive data can now be used to update strategies on the fly. But investing in the technology to do this is in and of itself a big decision to make and even a good idea can be badly actioned.

The report ‘Joining the dots: decision making for a new era’ from CIMA (Chartered Institute of Management Accountants) surveyed board-level executives at large organisations. In the survey, 80% of respondents said flawed information has been used to make strategic decisions.

Technology and data, when set up carefully, can be the competitive advantage that makes a significant difference to your business. With so much data coming through it is important it is systemized and ordered well but 36% of executives say their organisation is not coping with information overload. There is debate over how useful ‘big data’ is, with 37% saying it has helped and 32% saying it has made things worse.

Another factor in good decision making, identified by the report, is communication. 43% said their level of trust in fellow executives needed improvement and 57% said more active collaboration was required.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Purpose built products for diverse consumers

Posted on by Guy Lean

A new trend report from Sabre has announced that ‘Demographics are dead’. You can no longer presume what any one consumer group will want, but you can build products that meet new expectations and invite individuals to enjoy them. The report says ‘Consumers love brands with meaning and personality’ and that 63% of global consumers claim to buy products and services that appeal to their beliefs, values or ideals.

These videos discuss creating products to meet consumer needs:

There is a growing consumer awareness of what is possible. There are many niche needs, new trends and individual desires that can be catered to with carefully designed products. The report states that 65% of consumers say bands should take a leading role in supporting individual happiness.

As the above videos reflect, many new products are fighting cater to new consumers’ needs but a strong identity and a unique angle, be it experience or price, can set a brand apart.

The study also identifies helpfulness and personalisation as two key elements of future hospitality products. Generic advertising is losing popularity. Instead brands must connect with individuals and demonstrate an understanding of them.

Trends in Sabre’s report were identified by TrendWatching, powered by a global network of 3,000+ trend spotters.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Are alternatives now mainstream?

Posted on by Guy Lean

Osprey Equity Partners recently agreed to fund an £80m development of a GoNative aparthotel in East London. They are backed by LJ Partnership.

Alternative accommodation types like aparthotels and hostels are becoming increasingly attractive to investors. More in-depth data from historic transactions and long established properties in the sector, have given investors greater insight on which to base their decisions. This is slowly bringing more products into the mainstream, as our industry experts discuss in these videos:

A report by WATG released last year showed that one attractive element of aparthotels is the cost effectiveness to build. It states that on a site with an £17.5m acquisition cost, a 4 star hotel would take £28.2m to construct and a 4 star aparthotel only £27.2m. It also states that terminal value on the aparthotel would be £93.1m and only £82.3m on the hotel, where both have an exit yield of 5%.

Another difference between hotels and aparthotels highlighted by WATG is that, in an aparthotel, rooms division accounts for some 93% of revenues, whereas hotels take a large portion of revenue from F&B and other areas.

Finally, WATG’s report showed GOP margins of 63% and 49% for the respective aparthotel and hotel.

When completed the GoNative aparthotel will be a 21 storey property. GoNative will manage the property under a hotel management agreement.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: How competing with Airbnb has impacted hospitality

Posted on by Guy Lean

Airbnb just keeps growing. According to the website it has now had 60 million guests, 2 million listings worldwide, and is used in 34,000 cities. Summer travel with Airbnb has grown 353 times over in 5 years. In summer 2015, nearly 17 million total guests stayed with Airbnb hosts.

Other couch surfing/ hosted accommodation sites include 9flats.com, homestay.com and couchsurfing.com.

What does the growth of this type of accommodation really mean for hospitality and how does the impact vary across sectors? Our experts discuss:

Competing with Airbnb is made more complex by the fact that it offers such a variety of accommodation types. It could compete with everything from a hostel to a luxury hotel. The accommodation on offer includes yurts, RVs, boats and castles. Airbnb appeals to both holiday makers and business travellers so can impact all corners of the market at different levels.

Airbnb is typically most popular in cities. Top destinations for business travel are San Francisco, CA, London, UK and New York City, NY, and Paris, France. At the beginning of this year Airbnb also released some statistic about more surprising destinations that are gaining momentum including Chūō-ku in Osaka, Japan which had 7000% Growth in 2015, Brickfields, Kuala Lumpur, Malaysia, which had 1200% Growth, and Poncey-Highland in Atlanta, GA which had 240% Growth.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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