Category: TV Briefings

Briefing: The expansion of extended stay

Posted on by Guy Lean

A Special Report by Skift and Homewood Suites by Hilton found that there has been a 42.3% year over year growth in the pipeline for extended-stay properties in the US. Homewood Suites has 325 hotels in the US. Another growing extended-stay brand is Staybridge Suites, which has 101 hotels in the pipeline. With increasing awareness and demand for extended-stay accommodation internationally, there is high potential for growth.

Experts discuss extended-stays in a variety of accommodation types:

The report ‘The Changing Business of Extended-Stay Hotels’ found that the average age of extended-stay travellers is mid-40s. Also the 18-34 year old age group slightly favours extended-stay style accommodation for leisure trips.

The survey found that guests in extended-stay accommodation are more likely to be on business than leisure and that business travellers will stay longer.

Unsurprisingly the survey found that free wi-fi and a complimentary hot breakfast were considered the two most important amenities in an extended-stay hotel by both business and leisure travellers.

The survey found that only 45.4% of travelling Americans had stayed in extended-stay accommodation and 8.6% didn’t know what extended-stay accommodation was, suggesting there is potential for further growth in the market in America.

According to figures from STR, occupancy in extended-stay has been growing over the past few years. In the US, demand for extended-stay was 72.5% in 2012, 73.1% in 2013, and 74.9% in 2014. 125,000 new extended-stay rooms are expected to open in the US by 2018.

In the economy sector, STR data also showed that extended-stay supply growth was 2.6% YTD in May 2015 and ADR showed a 7.9% year on year change.

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

Briefing: Independent hotels find platforms for growth

Posted on by Guy Lean

Independent hotels have more access to technology and distribution channels than ever before. Could this help them compete with the groups?

According to a report from PWC; ‘about 40-60% of Europe’s hotels are currently estimated branded’. There are more unbranded hotels in rural areas than in cities and airports. The report also states that branded hotels across Europe are set to increase.

So how can independent hotels keep growing? Our experts discuss:

There is a mix of, technology companies, OTAs, and hospitality companies offering services for independents. These include: TripAdvisor, WorldHotels, and ChoiceHotels as above. Plus Umi Digital, AccorHotels, Sabre, TravelClick, and more.

This is a big market to tap. Almost 40% of the UK hotel market is independent hotels, according to a report from STR global. In August last year independent hotels in the UK had a better ADR than branded hotels, at £119 compared to £79. STR’s report indicates that this is largely due to the tendency for independent hotels to be a classed as upscale or luxury, whilst there is a strong economy hotel segment of branded hotels. The report also found that occupancy in branded hotels last year was 4% better than independents (73% vs 77%).

Upscale boutiques are in demand in America. According to a report from The Highland Group, the boutique hotel industry in the US is growing at a 3.1% annual pace and demand is growing at 6.7%. The report classes boutique hotels as ‘independent or part of small brands’ with ‘40 to 300 guest rooms’ and ‘generally upscale to luxury’.

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 so here. It’s free.

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

Briefing: The urban planning revolution

Posted on by Guy Lean

Modern developers and investors are thinking about urban space differently. Mixed-use builds are maximising space in cities, and some hospitality companies are doubling up assets in new projects.

In Manchester, proposals have been made for a new “community” on the site of the old ITV studios. This will have 2-3 new hotels, including an event hotel called Manchester Grande. Nearby, Cycas Hospitality is planning to open two IHG hotels, a Crowne Plaza hotel and a Staybridge Suites, in The University of Manchester‘s campus development.

Our experts give their perspectives on new developments:

The St John’s community development in Manchester is being planned by Allied London, who now have control of the former ITV/Granada studios site. They have also proposed plans for a ‘vertical village consisting of 1,200 homes within six interconnected towers.’ This would be built on a separate area of former ITV owned land.

The University of Manchester‘s campus development is a £1billion project. The Crowne Plaza business hotel and the Staybridge Suites extended stay accommodation will adjoin Manchester Business School’s new two-storey Executive Education Centre. The hotels will serve university visitors and business travellers.

These large scale projects reflect the developments in Stratford for the 2012 Olympics, where IHG also placed two asset classes together; Holiday Inn and Staybridge Suites.

Mixed-use projects and new “communities” are being developed across the globe, often in high rise buildings when space is tight. In Dubai a new ‘Cayan Cantara’ development by Cyan Group will have two towers and an adjoining bridge. The project includes branded residences, hotel apartments, shops, and a spa.

These clever developments will continue to offer hotels, serviced apartments, and other asset classes more and more different ways to fit into the changing urban landscape.

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 so here. It’s free.

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

Briefing: Major brands increase presence in Africa

Posted on by Guy Lean

The number of branded hotels in the African market is set to increase. According to a report from W Hospitality Group, Carlson Rezidor’s Radisson Blu brand has the most hotels in the pipeline (22 units), Hilton has 16 units, and Marriott has 11 units in the pipeline. Historically in Africa, financial and security constraints have often meant that projects in development are halted before they come to life. Despite this, there are clear intentions from major brands to enter new regions across Africa.

In this briefing hospitality industry executives discuss the hospitality market in Africa:

A special Market Report on Central Africa from Horwath HTL also states that, ‘more diversified global brands plan to enter the market’. According to the report 2,900 rooms are in the pipeline in Central Africa. This report also found that there has been an increase in business travel in this region.

Radisson Blu’s latest development is a hotel in N’Djamena, Chad. It will have 171 rooms, a health club, and conference facilities, and is due to open later this year.

Last month Hilton Worldwide announced an agreement to open its first hotel in Swaziland. The new hotel will be a Hilton Garden Inn and will be located in Mbabane. It will have 130 rooms and a dedicated event space.

Marriott International has plans to increase its presence in Africa. By 2020 it aims to have 150 properties with 19,000 rooms across 17 markets.

Current projections from the IMF’s World Economic Outlook say that GDP in Sub-Saharan Africa will be 4.4 this year, and in Nigeria will be 1.5. This indicates a slow-down in 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 so here. It’s free.

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

Briefing: Routes to a successful hospitality career

Posted on by Guy Lean

The Guardian has ranked the University of Surrey no1 for hospitality courses in the UK, with a satisfaction score of 93.1%. Traditionally hoteliers start at the bottom of the ladder and work their way up, learning on the job. Today, Surrey is just one of many universities that are offering aspiring hospitality professionals a chance to learn before starting their career path with the company that’s right for them. Many hospitality brands also have programmes to train young people and graduates into the industry.

In these videos our experts discuss learning and development, and finding career success:

Many young people in the UK will be heading to university come September, some to hospitality courses, and they will have plenty of choice as to where they can study.

Surry gained top rank within the hospitality, event management & tourism subject area, from the Guardian newspaper. 93.1% of final year students who completed the National Student Survey were satisfied with the course and 68% had a job in the area or were in higher education after 6 months. Other top universities for hospitality include Coventry, Robert Gordon, Oxford Brooks, and Derby, which had top place in last year’s ranking.

Some students may venture further afield to the top ranking universities on an international level. École Hotelière de Lausanne won best hospitality management school 2014 at the Worldwide Hospitality awards. This Swiss university has been around since 1893.

After university, or in some cases instead of, young people may enter the industry through a programme with a hotel brand.

Hilton is an active graduate recruiter globally, they run formal entry programmes for graduates in Europe and visit key hospitality schools and campus events.

Marriot also has a Leadership Development Program for graduates called Voyage which is available in more than 30 countries.

A great career takes planning and thought, and it can be beneficial to start gaining the experience you need as early as possible. For those who have been in the industry some years there will still be scope for development and much to learn, they should think carefully about their next steps. There is of course no substitute for experience, a passion for the business, and finding the right fit for you.

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 so here. It’s free.

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

Briefing: Good data management brings insight and development

Posted on by Guy Lean

Our reliance on digital technology means that data is building at an increasing rate. According to IBM we currently create 2.5 quintillion bytes of data everyday and 90% of the data in the world today has been created in the last two years alone.

Much of this data is irrelevant but where businesses are identifying the correct data sources and taking the time to analyse them they are finding value. Hospitality business should also think about making accurate data available to guests and clients.

In this briefing four hospitality experts discuss data management and analysis:

Many disruptive businesses have digital and data front and center of their strategy.

In hospitality Airbnb employs ‘data scientists’ to analyse things like the likelihood of a host accepting requests from potential guests. This analysis can help them increase the amount of successful matches.

In other industries, companies like Uber have invested in clever data analysis to be able to make predictions about its customers’ behaviours outside of the cab.

Established hospitality brands are also investing in digital and data. In October last year Accor announced plans for its digital transformation, which involves a €225 million investment plan and focus on two ‘pillars,’ IT infrastructure and data management.

Much of the data used and produced today is on mobile devices. According to Accenture ‘50 billion devices will produce actionable data by 2020’.

Research by Ericsson found that mobile data traffic increased by 55% from 2014 to 2015.

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 so here. It’s free.

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

Briefing: Cost and convenience drive serviced apartment bookings

Posted on by Guy Lean

The latest Global Serviced Apartments Industry Report found that overall the price is the primary factor behind the decision to book a serviced apartment or a hotel.

There are variations in offerings across the serviced apartment/ extended stay/ aparthotel sector, but the main drivers for staying in these properties are clear. The report states that the ability to cook their own meals or entertain (71.6%), privacy (66.6%), and the apartment environment (58.3%) are influencing travellers to use serviced apartments.

In this briefing industry experts discuss serviced apartments and their customers:

GSAIR was put together by The Apartment Service, which states that serviced apartments are cheaper by about 15% – 30% than equivalent standard hotel rooms. This price difference makes it the winning option for many travellers. The report also states that 81.48% of travellers who have stayed in a serviced apartment prefer them to hotels.

According to the association of serviced apartment providers there is on average 30% more space in a serviced apartment, although guests forfeit the restaurants and extra communal areas in a hotel. The space allows people to have visitors and the kitchen facilities allow people to cook their own food, which can both save money and make the apartment feel more homely. This is especially appealing to people who need an extended stay and also to families with children who need the room and the convenience of a more home-like space and the ability to dictate the menu and meal times themselves.

Apartments are also popular with business travellers and are often used by companies in travel policies as a cost efficient option for employees’ business travel. According to Business Travel Insights 2015 nearly 75 percent of travel policies include serviced apartments as an approved option. One in every eight of corporate travel buyers surveyed for the Business Travel Show’s annual survey booked more serviced apartment accommodation in 2014 than 2013.

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 so here. It’s free.

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

Briefing: Understanding brand power in a new landscape

Posted on by Guy Lean

What does it mean to be a hospitality brand in 2015? Travellers today will not be as influenced by a brand name as they once were when booking accommodation. According to Mintel Group, 48% of guests will not visit the hotel’s website before arrival, and 79% see price as a key factor when choosing a hotel. However strong brands in the industry are still growing.

These videos look at the way new brands are developing, how powerful brands are staying relevant, and what might happen with brands in the future:

In todays’ hospitality landscape technology has changed distribution forever, given independents more power and has sparked the emergence of new brands.

There is some debate over the possible consolidation of brands in the future as discussed in the above videos.  At the moment more and more brands are being created, often within existing brands, to serve new markets.

In other industries the power of the brand is still immensely strong particularly in the technology industry. Apple currently tops Forbes list of The World’s most Valuable Brands, with a brand value of $145.3 Billion. Microsoft, Google and Coca-Cola and IBM make up the rest of the top 5.

The MKG group’s Hospitality database shows that in January 2015, IGH was the top ranked Hotel Brand. It had 710 295 rooms and a growth of 3.4% on 2014. Hilton and Marriot were ranked 2nd and 3rd and showed growth of 5.4% and 5.9% respectively.

A survey from BDRC found that 42% of European leisure travellers rate review sites as important when selecting a hotel for leisure. In comparison 36% rate hotel brands and important. BDRC also found that leading brands can still command a higher price than unknown brands, with an uplift of €26.98 in the luxury market.

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 so here. It’s free.

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

Briefing: Hotels invest in innovative design

Posted on by Guy Lean

Last month IHG announced plans to open a new Hotel Indigo in The Sustainable City (TSC), a new large scale community development in Dubai. The city is intended to have the highest sustainability standards and the new Hotel Indigo will match this with a building designed to recycle all waste water and use 100% solar power. Also in May an innovative hotel design Snoozebox won the Good Design Award Trophy in the Architectural Design category at the Good Design awards in Sydney.

In this briefing four experts discuss the value of innovative design:

Great design ideas are helping hotel companies modernise, differentiate, increase sustainability, and tap into new markets.

Snoozebox is a self-contained portable hotel which can be set up at events and festivals as an alternative to camping. Each room has an ensuite wet room bed a TV and wi-fi. Each pod room is 7.5 square metres. Snoozebox is providing accommodation at many of the festivals around the UK this year including Glastonbury.
IHG’s Hotel Indigo brand has been around since 2004, it is focused on design with each hotel intended to reflect the area it is in and look like a boutique hotel despite being part of a brand.

CitizenM is another brand hinged on design. Its hotels incorporate bright colours, modern style furniture, ‘luxurious living room style lobbies’ and a 24hour canteen and bar to appeal to modern travellers and distinguish itself from more traditional hotel design.

The Good Design Awards is an annual international event which covers design in all industries. The European hospitality industry also has its own European Hotel Design Awards. Last year the wellness hotel the Lanserhof Tegernsee, Marienstein, Germany won the European Hotel Design of the Year Award at EHDA, and The Edible Hotel by Dexter Moren Associates won Tomorrow’s Hotel for a design with an open plan lobby, an edible wall, and an aquarium.

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 so here. It’s free.

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

Briefing: High staff turnover is costly for hospitality businesses

Posted on by Guy Lean

A new report from Deloitte, Hospitality 2015 – Game changers or spectators, found that employee turnover in hospitality can be as high as 31% and may increase further as the recession is left behind. This is nearly double the average rate for other industries and can be expensive for businesses. So how can hospitality businesses hold on to valuable staff for the long term?

In these videos hospitality experts discuss staff retention:

Staffing costs account for a tremendous proportion of hotel operation costs. Deloitte’s report states that, ‘An average hotelier spends 45 percent of operating expenses and 33 per cent of revenues on labour costs.’ High turnover rates cause extra costs in recruitment and training. According to the report 52% of the cost of replacing staff is productivity loss and 14% is orientation and training.

The report shows that the top barriers to retaining employees are lack of compensation increases and excessive workload. At entry level, hospitality jobs can typically have somewhat irregular hours and fairly low pay and can attract younger workers who may not considered hospitality a long term career. However hardworking, happy and engaged staff are essential for the smooth running of a hotel and the longer staff stay in their roles the more they will have to offer the company.

In order to impress guests companies need staff across the business who understand the industry well and are able to represent the brand at the level expected. It is well worth focusing attention on giving staff a good experience so that they want to perform their best.

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 so here. It’s free.

Video clips produced by yBC 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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