Tag: hotel

Empowering Women in Hospitality

Posted on by Katherine Wyles

March is synonymous with International Women’s Day, inspiring us to share our insights on gender diversity from our work in networking and mentoring. 

With a strong background in networking, our team at HPG is very comfortable navigating crowds, making connections and building relationships. However, we also recognise that not everyone shares this experience and appreciate that working in a crowd of people can feel particularly daunting if it is not something you do regularly. The hospitality industry is built on relationships, and an effective networking strategy can have a significant impact on your career progression.

For female professionals looking to advance their careers, mentorship and sponsorship play a critical role in building confidence to unlock and navigate these career opportunities. However, the access to these opportunities is not always equal, and different individuals experience networking spaces and career advancement in unique ways.

Women often find themselves underrepresented in senior hospitality leadership roles, and those who do succeed in this arena have the additional pressure of vast performance expectations. Understanding how to develop a strong network of influential supporters is often crucial to ensuring equal access to professional growth.

We hope that sharing our insights and experience might help all individuals, regardless of gender or background, reach their full potential in hospitality.

Building Confidence and Connections
Mentorship is a structured way to share expertise and guide others in their career development. It can take many forms, from formal mentorship programmes to informal relationships that develop naturally through networking. In our experience, there isn’t a one-size-fits-all solution as different individuals approach it in their own ways. Some thrive in structured settings, while others benefit from more organic, natural relationship building. More extroverted individuals may find the networking element much easier, while introverts might prefer one-on-one mentorship relationships that grow slowly over time. 

For those looking to find or become a mentor, there are excellent platforms available:

  • Inspiring Women in Hospitality – A global initiative that connects and supports professionals across the industry.
  • Institute of Hospitality – Offers a mentorship scheme designed to support hospitality professionals at all career stages.
  • Be Inclusive Hospitality – A platform dedicated to supporting underrepresented groups in hospitality through mentorship, education, and advocacy.
  • Master Innholders – Provides leadership development and mentoring opportunities for professionals in the hotel industry.

While each of these platforms offers a valuable network to explore, none of them can guarantee a perfect match for each mentee. Personality compatibility is essential, and respecting your mentor’s time by knowing and communicating what you want to achieve out of your discussion is crucial to forging a successful mentorship. Ultimately, a mentee has the most to gain from this relationship and should be the driving force behind it.

Navigating Networking
From our experience, expectations of what can be achieved from networking events can differ across genders and personality types. For instance, large-scale networking events often favour people who are naturally outgoing and comfortable introducing themselves to strangers and engaging in broader, more competitive, and transactional networking, that focuses on expanding their contact base and doing deals. Those who prefer more structured, goal-oriented interactions and look to build deeper, more relational connections may find it beneficial to seek out events with pre-arranged mentorship elements or discussion groups. 

While these personality types can be found across either gender, the added assumptions and gender biases can also impact these outcomes. The unconscious bias that perceives a natural masculine assertiveness more naturally suited to networking, could manifest itself into situations where women are less likely to be approached at networking events, asked about their family life more than their career achievements, less likely to be taken seriously, and less likely to be introduced to high-level contacts due to their gender. 

For networking to be inclusive and effective, organisations should consider how they structure their events. Creating a mix of formal and informal networking opportunities, ensuring gender balance among speakers and attendees, and incorporating elements of structured mentoring or introductions can help level the playing field for everyone.

Sponsorship and Advocacy
While this networking and mentorship can provide guidance and support, it is sponsorship that actively propels careers forward. Sponsors are influential leaders who advocate for their protégés, recommending them for key roles and leadership opportunities. Research suggests that individuals with sponsors are significantly more likely to advance in their careers, highlighting the importance of having someone in your corner who will champion your skills and achievements.

As Naureen Ahmed, Founder of Inspiring Women in Hospitality puts it:

“Sponsorship is what people say about you when you are not in the room.”

Unlike mentorship, sponsorship is often more informal and unstructured, making it less transparent and harder to access. Effective networking plays a crucial role in connecting with potential sponsors, yet women and underrepresented groups can find it more challenging to secure these opportunities. In hospitality, where relationships have such a strong impact on career advancement, this lack of clear sponsorship pathways can disproportionately affect women. Many potential sponsors may unconsciously favour candidates who remind them of themselves, which reinforces existing gender imbalances in leadership roles. Additionally, women are frequently expected to demonstrate exceptional performance to gain the same level of advocacy that men might receive more readily. This should certainly be considered as we strive for more inclusive networking environments.

Creating a More Inclusive and Equitable Industry
If businesses want to foster a strong workplace culture, they should ensure that mentorship, sponsorship, and networking opportunities are accessible to everyone, regardless of gender, personality type, or background.

Some key actions that hospitality businesses can take include the following:

  • Encouraging diverse networking environments – Avoiding exclusive, informal sponsorship networks and ensuring a balance of perspectives in leadership circles.
  • Supporting mentorship and sponsorship initiatives – Providing structured mentorship programmes and creating a culture of advocacy within leadership teams.
  • Recognising different networking styles – Offering a mix of formal and informal networking opportunities to accommodate different personalities and working styles.
  • Prioritising visibility for underrepresented professionals – Ensuring that everyone has access to career-advancing opportunities through open dialogue and transparent promotion processes.

At HPG, we are committed to fostering workplace cultures that support mentorship, advocacy, and leadership development. If you’re looking to enhance your organisation’s people strategy, then please get in touch.

Andrea Shaw
[email protected]
+44 07714 236 469

Mara Cattaneo
[email protected]
+44 20 8600 1180

Tairona Lattanzi
[email protected]
+44 20 8600 1160

Reflecting on 2024

Posted on by Katherine Wyles

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

Posted on by Dan Akhtar

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

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

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

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

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

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

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

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

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

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

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

The Impact of Increased Salary Thresholds on the UK Hospitality Industry

Posted on by Dan Akhtar

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

Posted on by Guy Lean

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Success Stories – In Conversation with Claire Llewellin-Davis

Posted on by Katherine Wyles

With a diverse background spanning prestigious international establishments such as The Hurlingham Club, The Hong Kong Jockey Club and now as Managing Director of The Lensbury, Claire Llewellin-Davis’ journey has been impressive.

Her expertise extends far beyond the confines of luxury hospitality, having previously served in Iraq and Afghanistan in her distinguished eight years as a British Army Officer. This unique blend of experiences has shaped Claire into a dynamic leader, well-equipped to inspire change and set new standards of excellence at every level.  

The Lensbury
Founded in 1920, The Lensbury is set within 25 beautiful acres, bordering the River Thames, and comprises a 155-bedroom hotel, a private members’ club with 7,000 members, a conference centre, state of the art gym, studios, an indoor pool, spa, 24 tennis courts, squash courts, water sports centre and elite sports facilities supported by a heavy weights gym and 2 UEFA pitches. 

Claire commenced her role as Managing Director at The Lensbury just days before England’s Lionesses checked in to begin their successful run at Euro 2022. It resulted in Wembley glory and a team victory celebration hosted at The Lensbury, the likes of which hadn’t been seen in England since 1966. 

We had the pleasure of catching up with Claire for a fascinating chat, where she shared her invaluable insights on the world of hospitality within both Club management and the Hotel Industry. 

Transitioning from a successful career in the British Army to the world of hospitality is an impressive achievement. How has your military background influenced your approach to leadership in the hospitality industry, and what valuable lessons have you carried forward from your time in the armed forces?
A career in the military provides an excellent grounding for all walks of life, and the path to Club Management is increasingly common. I loved my time in the Army, and credit it for honing a number of transferable skills and lessons for future success:   

  • The importance of teamwork and developing a strong camaraderie; there is no leadership without followership 
  • The power of communication; this sets the foundation for success at all levels
  • The necessity for ongoing personal and team development, ‘train hard, fight easy’ 
  • To set, embody and maintain high standards; to ‘be the best’ 
  • To set priorities and manage time 
  • Resilience: the confidence and strength to tackle the unknown 

In your opinion, what are the key factors that contribute to creating a strong and cohesive team culture within a hospitality organisation?
Communication is key. The majority of people set out to do a good job. It is our responsibility as managers and leaders to help them deliver it. We have to put in place the structure and support necessary for our team to understand what their role is, what the future of the business is, and to see how they play their part within it. We must encourage and reward success. The workplace should be an enjoyable place to be, where engagement, recognition, reward and support are part of daily life. Happy staff = Happy customers.  

As a seasoned hospitality leader, what do you believe sets apart truly exceptional service from the rest?
The key to exceptional service is anticipation. Understanding what someone wants, before they know it themselves. 

As an experienced Club Manager, now benefiting from an insight into the world of Hotel Management, what have your observations been?
It has been a fascinating, and hugely rewarding experience. There is so much that Club Management can learn from the Hotel Industry and vice versa. Whilst equity Clubs are ‘surplus’, rather than ‘profit driven’, there is much to be said for the hotel industry’s laser focus on revenue and profitability at department and GOP level. Data driven decision-making is powerful. 

Technology has revolutionised the way we experience hospitality. How do you strike a balance between leveraging technology to enhance guest experiences while still maintaining a personal touch?
The word ‘balance’ is key between automation, and maintaining a human connection, which will always be irreplaceable. Automation is great when there is little complexity; as the military would say, Keep It Simple, Stupid. With escalating costs, we are all looking at ways we can reduce our overheads. Ultimately technology that will enhance the guest experience, whilst providing a better understanding of their journey and drive revenue, is what we are all looking to invest in.   

What advice would you give to aspiring hospitality professionals who aspire to reach leadership positions within the industry?
Believe in yourself and be clear about the kind of organisations you want to work for and why. Continue to develop yourself and obtain professional qualifications which will set you apart from the rest. Don’t be afraid to take the odd ‘detour’ if you can see that it will provide you with additional, relevant skills in the future. Attitude is everything.  Good luck! 

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 [email protected] 

The Evolving Role and Importance of the Hotel Asset Manager

Posted on by Dan Akhtar

In the dynamic and ever-changing hospitality industry, the role of the Hotel Asset Manager has become increasingly more visible and vital to the investor, owner and operator relationship.   

For some time, HPG Advisory Services has been familiar with the position, as hotel owners and investors build an independent connection to the day-to-day operations of their properties, while savvy operators prove their commercial acumen by adding this additional skill to their property management arsenal.  

Historically, owners would have liaised directly with hotel General Managers and Finance Directors to measure performance. Over the last 20 years, we have seen the emergence of dedicated Hotel Asset Managers who play a crucial role in maximising profitability, ensuring operational efficiency, enhancing the overall guest experience and ultimately, maximising the return on investment. In an interview with Hotelier Middle East last year, Hospitality Asset Managers Association’s Vice President Amit Nayak said that owners have realised that “you need a certain category of individuals to run your asset, those who understand operations; those who understand corporate finance and lending; and those who understand relationships.” 

Here, we explore the ever-evolving responsibilities and significance of hotel asset managers in the hotel industry. 

Financial Performance and Revenue Optimisation

One of the primary responsibilities of a hotel asset manager is to drive financial performance and revenue optimisation. With a highly competitive market, rising costs, and fluctuating demand, it has become crucial to engage experts who can analyse data, identify new revenue opportunities, and implement strategies to protect profits. Hotel asset managers work closely with hotel owners, management teams, and other stakeholders to develop comprehensive financial plans, set performance benchmarks, and monitor key performance indicators (KPIs). They provide valuable insights on pricing, revenue management, cost control, and expense reduction to achieve sustainable financial growth. 

Risk Management and Investment Strategy 

As the hospitality industry faces various risks and uncertainties, effective risk management and investment strategy have become paramount. Hotel asset managers are responsible for evaluating potential risks, assessing market conditions, and implementing risk mitigation measures. They play a pivotal role in determining the investment strategy, analysing market trends, conducting feasibility studies, and assessing the viability of expansion projects or acquisitions. By carefully managing risks and making informed investment decisions, hotel asset managers protect the interests of owners and investors while maximising returns. 

Operational Efficiency and Quality Assurance 

In an era where guest expectations are continuously evolving, operational efficiency, quality assurance and a clear focus on the customer experience are essential for maintaining a competitive edge. Hotel asset managers collaborate with operational teams to streamline processes, enhance productivity, and improve service quality. They implement industry best practices, conduct regular operational audits, and identify areas for improvement. By analysing guest feedback, monitoring online reviews, and benchmarking performance against competitors, hotel asset managers ensure that the hotel maintains high standards of service delivery and guest satisfaction. 

Asset Enhancement and Capital Expenditure 

Hotels require ongoing capital investments and asset enhancements to stay relevant and attractive to guests. Hotel asset managers develop long-term asset enhancement plans, aligning them with the overall business strategy. They identify areas where renovations, technology upgrades, or repositioning efforts can add value and increase profitability. By closely monitoring industry trends and guest preferences, hotel asset managers play a crucial role in guiding capital expenditure decisions that optimise returns and enhance the guest experience. 

Relationship Management and Brand Alignment 

Building and nurturing strong relationships with stakeholders, including hotel owners, operators, brands, and third-party vendors, is a critical aspect of the hotel asset manager’s role. They act as a liaison between owners and operators, ensuring alignment of goals, contractual compliance, and effective communication. Furthermore, they work closely with brand representatives to ensure brand standards are met and brand values are upheld. By fostering collaborative relationships, hotel asset managers create an environment of trust and transparency that leads to successful long-term partnerships. 

Conclusion 

The hotel asset manager role has become a multifaceted and indispensable position for many hotel operators, owners and investors. Their expertise in financial management, risk assessment, operational efficiency, and relationship management contributes significantly to the success and sustainability of hotels in a competitive market. The ability to adapt to evolving industry trends, leverage data-driven insights, and make strategic decisions is essential for maximising profitability, enhancing guest experiences, and ensuring long-term success in an uncertain landscape. 

HPG Advisory Services are specialists in the hospitality Investor, Owner and Operator landscape.  If you would like to have a deeper conversation about asset management, or any of the other services we can offer, then please reach out to set up a call. 

Dan Akhtar, Managing Director of HPG Advisory Services +44 20 8600 1166 / +44 7808 157796 / [email protected] 

 

 

 

Hospitality Investment Trends

Posted on by Katherine Wyles

Last year, HPG Advisory Services looked at the Global Hotel Investment Landscape as international travel was beginning to re-emerge after Covid-19. We explored some of the key considerations for investors and owners and looked at which geographic regions and styles of properties were most likely to see an immediate uplift post-pandemic.  

Since then, consumer confidence towards travel has increased, and as restrictions are being lifted in numerous countries, and many hospitality businesses are reporting a promising return to growth.  

Here, we review the emerging trends and what opportunities the hospitality sector presents in the future. Whilst we’ve taken various insights into consideration, we must acknowledge the ongoing conflict and humanitarian crisis in Ukraine which continues to threaten stability throughout Europe and events there could quickly shift any current trends in unpredictable directions. 

What happened in 2021? 

Firstly, let’s recap on some of the hotel investment highlights from 2021. The Caterer has reported that hotel investment in the UK grew by 84% on 2020 levels and at £4.14 billion, was just shy of the 15-year average. Private equity was particularly interested in regional hotel investment which was particularly buoyant, and it was clear that international investors still see great value in the UK market with investments relatively split between investment from within and from outside the UK. 

“The hotel sector has had a resilient year with strong momentum in the final quarter showcasing the appetite for UK hotel assets. While there remains operational challenges in the short-term, investors continue to be positive on the long-term outlook of the sector and we anticipate another strong year in 2022 for the UK hotel investment market.” – Tim Stoyle, Head of UK Hotels at Savills. 

Investor trust also returned to Spain as the €3.19 billion (as noted by Christie & Co.) where investments exceeded pre-pandemic figures. 2020 had seen a strong pull away from urban hotel investment, a trend reinforced by one of HPG’s clients that completed two transactions in the Iberian Peninsula during the pandemic. 

Continuing Trends into 2022 

Recruitment and Retention   

One of the biggest challenges in hospitality, since the start of the pandemic and closure of so many businesses, has been recruiting and retaining employees. Furlough, redundancies and the continuing effects of Brexit forced many front-line employees to either join new industries or return to their home countries, precipitating a perfect storm for the decline in available talent in the hospitality industry.  

As with every challenge, there is an opportunity and any hospitality organisation that can make their business more attractive in what is currently a candidate-driven marketplace will have a huge advantage. Working from home, digital nomads, flexible working and reimagined office space all became the norm during the pandemic. New working trends are condensing the space between business and leisure and the portmanteau Bleisure has re-emerged.  

Hospitality, especially at the luxury end, has always given employees an insight into a luxury lifestyle and the opportunity to travel or live abroad. Company benefits that replicate this can still be very appealing to potential candidates while also giving them a valuable insight into customer expectations and a road to building empathy and genuine connections with the guests they take care of.  

Hospitality’s Digital Transformation 

Investors will be keeping a keen eye on the increased digital transformation of hospitality service and how they may be able to leverage these digital innovations to drive customer experiences, revenues and return on investment.  

The pandemic was a catalyst for the hospitality industry to accelerate processes for everything from contactless payments to online ordering and mobile hotel check-in. The expectations of digital-savvy customers are very high, but the concept of creating completely new digital experiences to complement the more traditional in-person experiences doesn’t seem quite as far away as it did two years ago. While taking on too much could harm the existing customer experience, successfully integrating innovative, creative and exciting digital experiences could be very tempting to investors, eager to catch the next big wave of this transformation. 

 ESG and Property Investment 

 We recently explored how the Environmental, Social and Governance strategy of businesses is a key consideration for potential employees when choosing a new organisation to work for. Unsurprisingly, ESG is now playing a large part in how property investors are thinking about their investments. Since property is usually a longer-term investment, ensuring that all new buildings have sustainable credentials and retro-fitting existing buildings with environmentally friendly features will help future-proof their investment. 

ESG Investment Funds are also increasingly popular and have rewarded investors with solid returns over the last few years. Larger Hospitality chains, who form part of these funds are often keen to ensure that the hospitality operations are aligned to the expectations of these funds manager and investors. As a result, the role of Hotel Asset Management has become increasingly popular as owners look to listen to the market in order to protect their assets and drive growth.  

General Investor Trends 

The recent 2022 Knight Frank Wealth Report looked at investment trends for popular luxury items such as art, whisky, classic cars, diamonds, wine and watches. While these investors had different experiences through the pandemic, they all seem to be predicting some sort of future that embraces digital transformations with Cryptocurrency, NFTs and the Metaverse featuring heavily. Many investors appear to be dipping their toes into this area so as to not be left behind, but the majority seem to have little understanding of how this digital future might actually play out. In many ways, the future is unwritten and it will be the innovators that best capture their moment that will ultimately succeed.  

 

HPG Advisory Services have exceptional industry relationships and proven successes with operators, developers and investors in the hotel, and hospitality sectors across Europe, Middle East, Africa, Asia and the Caribbean. Our services include executive search, human capital architecture, talent management consultancy, behavioural profiling and a range of human capital services tailored to meet the specific challenges of each of our clients.  

We are proud to have delivered some of the industry’s most talented leaders into key appointments. If you’re looking to build, strengthen or diversify a role, a team or your entire business, please contact us today.  

Dan Akhtar, Managing Director of HPG Advisory Services +44 20 8600 1166 / +44 7808 157796 / [email protected] 

Briefing: Hospitality leadership is more than revenue management

Posted on by Guy Lean

A survey published in the Harvard Business Review has revealed that the top two leadership qualities, as rated by global leaders, are having ‘high ethical and moral standards’ and ‘providing goals and objectives with loose guidelines/direction’. In hospitality, leaders at hotel management level and brand executive level have different but equally important roles to play in the success of a business.

In these videos industry experts discuss the importance of good leadership in hospitality:

In 2016, 89% of companies see leadership as an important or very important issue (up from 87% in 2015). That is according to Deloitte’s Global Human Capital Trends 2016.

As a business or industry develops leaders must be able to change and learn. This was reflected in the number four choice in the HBR survey; having ‘the flexibility to change opinion’.

One report that focused on leadership in a world of change is IBMs Global C-suite Study. This found that today’s CEOs say technology is the chief external influence on their enterprises. They think that user-based mobile solutions and cloud computing will be big drivers of change. 82% of the CEOs surveyed expect to engage more digitally over the next 3 to 5 years.

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: appreciating the growth opportunities in Africa

Posted on by pmalone

The Tipping Point for Africa has been imminent for a long time. The continent clearly holds huge opportunities, but the complexity and size of the 50+ countries means it is often very difficult to get product there. Having said that, many Governments are working together to try to encourage and break down the barriers for investment, as explained by Dr Nelson Githinji, the Tourism Secretary for Kenya.

For whatever reason, some African countries currently have no branded hotel product within their borders at all and although there are intricacies which need to be ironed out, you certainly shouldn’t dismiss Africa. Reasons why are explained in this briefing by:

  • Patrick Fitzgibbon, SVP Development – Europe & Africa of Hilton Worldwide describes the plethora of opportunity on the continent.
  • Dr Nelson Githinji, Tourism Secretary of the Ministry for Tourism – Kenya, on the concessions for those who invest.
  • Jalil Mekouar, of Jones Lang LaSalle Hotels on the resurgence of curiosity seen for Africa
  • And Joy Albright of the African Export-Import Bank on where she sees the appetite for investment

If you’ve been sent to this page but 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.hpgcms.wpengine.com for the Hospitality Channel, including interviews from industry conferences such as the most recent IHIF conference as well as specific Hospitality Channel shoots.

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