European Hotels Anticipate Positive Trading in 2014 but Must Adapt to Genuine Service Guest Demands
January 13, 2014 8:31am
Across Europe hotel development remains active with 360 hotel projects ongoing, an additional 60,000 rooms. Many are expected to open in 2014, with the balance in 2015 and 2016. A further 450 hotels (70,000 rooms) are currently at the planning stages, with the majority of projects to be found in the UK followed by Russia, Turkey, Germany and France*.
Global hotel consultancy HVS London said that some 45% of the new rooms under construction in Europe are in the upscale sector, rather than only the budget sectors.
"There has been much talk about the growth of the budget end of the market, but operators are still keen to build prestigious hotels in key locations as consumer demand from Russia, China and the Middle East remains strong," commented HVS chairman Russell Kett.
London boasts around 100 hotel projects currently at the planning stage, while there is still demand for individual properties in the capital, as well as in the provinces.
"Debt financing is becoming easier, but typically this is still only for acquisitions and refinancing where the borrower is already known to the bank, rather than new development. Lending is more easily obtained for hotels in major cities as opposed to provincial or resort locations," he said.
However, while hotel development and transactions look relatively positive, Russell Kett urged operators across Europe, particularly those in upscale hotels, to adapt to the changing demands of the modern traveller who is now seeking a different sort of hotel experience, with genuinely courteous service, rather than bland, corporate responses.
"How much more refreshing it is when such attitudes come naturally to people, when staff delight in giving great service in a natural, unforced way, and when guests feel so happy about their experience that they do your marketing for you by telling their friends - little wonder that many boutique hoteliers recruit staff on the basis of their character and personality, rather than qualifications," he said.
London has taken the lead in the development of alternative hotels, such as boutique properties and serviced apartments. These developments are meeting the needs of this more sophisticated demand base and ultimately this might stretch more into the UK regions.
"Boutique hotels have a great future ahead of them, not least in helping to re-educate the mainstream hotel sector in what the hotel business is all about," concluded Russell Kett.
* figures supplied by STR Global
Tags: hvs london,
Contact: Russell Kett, Chairman
+44 20 7878 7701 / Mob: +44 78 0241 1142
Contact: Linda Pettit, Tilburstow Media Partners
+44 13 4283 2866. / Mob: +44 79 7378 9853
Supply Increase Impacts Occupancy in UK's Provincial Hotels, Says Hotel Market Tracker
In the European Culture, Hospitality Is a Common Denominator
European Hotel Industry Performance Over the Cycle
Renewed Hope for Israel's Hotels as Investor Interest Shows Growth, says HVS Report
London to Gain 7,000 Hotel Bedrooms in 2016 While Demand Subdued Says Hotel Bulletin
Budapest’s Hotel Sector Becomes One of the Fastest Growing in Eastern Europe, Says HVS Report
Time Right to Develop, Acquire or Invest in European Hotels as Hotel Groups Set to Expand, Says HVS
Europe's Demand for Serviced Apartments Increases but Classification System Vital, says HVS Report
Investor Interest in Europe's Hotels Improves as Economic Recovery Boosts Demand, Says HVS London
HVS London, Zolfo Cooper & AM:PM Publish Q3 Hotel Bulletin; Outline UK's Hotel Performance
Please login or register to post a comment.