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Blue Skies Up Ahead!

Will London Hold Strong in the Next Financial Quarter?

The F&B Trends Transforming the Industry

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All Change: HR in 2015

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I have had the same make of car for 12 years. On average I change it to the latest model every two years and I am always amazed by the enhancements. It gets quieter, quicker, easier to drive, more economical and there is the wonderful array of gadgets, from cameras to cruise control. I really do feel that there is a group of people in Munich that assemble around a table once a year specifically to make life easier for me. I can imagine their conversation: “I know, if it’s raining then let’s have the rear wiper go on automatically when he selects reverse,” says one. His colleague chimes in with, “We could also have the nearside door mirror move down so that he doesn’t kerb his wheels when parking.” They even turn my music down so that I am

not startled when I get into the car having played the Spice Girls too loud when I parked up. The best one ever is the boot release that works by waving my foot under the back of the car when my hands are full – genius! Hotels need to think more like car companies. Time for Change I know so many hotels that are unchanged in 20 years and who wonder why they aren’t full. Hotels need to seduce, entertain and emotionally connect with their residents. They also need to think about ways of surprising and delighting their customers, creating as many “I wasn’t expecting that!” moments as possible. Most importantly, they need to find out

who their guests are, what makes them tick and why they are visiting. For example, if a chap is a Porsche fanatic he will not be the slightest bit interested in Gok Wan’s kitchen feature in Home and Garden; he wants to see smoking Panameras and souped-up 911s ... his wife on the other hand may be quite fascinated by Gok’s pots and pans and will be on the John Lewis website in a flash! Men are kids at heart, so in the Dormy loos we leave remote control cars and helicopters for them to play with. At Dormy, we have signs that say “Please walk on the grass” rather than “don’t”. Grass is for walking on. If it can survive Beckham’s right foot, it can certainly survive an after-dinner stroll. Fun, Fun, Fun! Hotels should be about fun. We spend the week stressed at work,

hardly seeing our families, worrying about the Middle East and hoping interest rates stay where they are – do we then want to stay at a hotel that takes everything too seriously? The stress then builds because I’m watching Fiona Bruce talking about growing unease in Gaza and I daren’t even put my feet up on the furniture ... and why should I need to put on a tie to qualify for a G&T in the hotel bar?! Guests who are made to smile come back: that’s a fact. And hotels need to take more time injecting the fun element.

Signage is a key opportunity. What is the point of a “Staff only” sign? The worst that can happen is that someone walks in and realises they shouldn’t be there. At Dormy House, the sign warns “Beware of the Staff” and then when guests meet our staff they realise that they are the most natural, warm and genuine they have ever come across. We have a store room for mops (every hotel has one of those, maybe two) with a sign that simply says “Nothing to see here.” There isn’t. And I smile every time I see it.

New Interview Questions Hotels also need to employ fun people and need to ask different interview questions. The classic question: “What do you like about hospitality?” elicits the response: “I like to meet people.” The question needs to be “how would you entertain our guests and make them smile?” If they have to think about it too long, simply shout “Next!” and hand them their coat. Our team members are employed for will, not skill. Most have a mischievous twinkle in their eye and some are a bit unpredictable and edgy. I like that because it’s spontaneous, from the heart and very engaging. There are two phrases hotels should ban. The first is “Let me just check with my supervisor.” Please empower your team to sort me out chips instead of mash! Please don’t make the

waitress call her manager who then produces a raft of paperwork tracking the request so that it can be fully discussed at the next Heads of Department meeting. No More Meetings! Talking of meetings, stop having meetings; keep your teams on the floor where they belong ... If they wanted to have lots of meetings and get nothing done they would work in local government! The next phrase is “Checking in?” Here they are, the lovely Smith family, stressed Mum, Dad, kids, dogs, cases, pushchair grasping a letter of confirmation ... I would say it’s a pretty safe assumption that they are here to stay and not passing through. My other guess is that after the journey they have had on a Friday evening, they do not want a wake-up call, they can’t decide what newspaper they want and really don’t care when breakfast is served until. I recently heard a story of a wedding couple arriving at a very nice hotel for their wedding night only to be asked: “Do you have a reservation?”

Car companies are also very good at keeping in touch with their customers; hotels generally are not. A hotel can launch a new restaurant, refurbish bedrooms, take on Chef who is ace with an octopus and can do wonderful things with a chicken but they just don’t bother to tell their customers. Some may like octopus. When a car needs to go to the dealer it tells you. First you get a “service in 6000 miles” message, then later an amber light and then the dreaded red light which effectively means stop now! Hotel guests have no such prompts. A little note doesn’t pop up on the TV whilst they are trying to work out why everyone in Eastenders is either fighting or crying saying “Dormy stay due in 30 days”. There isn’t an app that does this either. Yet. For me, the mark of a great hotel is when the return car journey is dominated by conversations about when and with whom they will return. That’s the desire we as an industry need to create.

1. Maintain Perspective Look at everything you do from a customer perspective 2. Innovate Innovate and don't become stale 3. Guest Contact Stay in touch with your guests 4. Humour Maintain a sense of humour in and make your customers smile 5. Empower Empower your teams to make decisions

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High occupancy has ruled the roost in the last quarter, as UK hoteliers in London and regions reaped the rewards of the rise in tourism. July saw occupancy in regional hotels increase by 3.0% to 82.9% as the Commonwealth Games in Glasgow and the British Open in Liverpool brought an influx of spectators. And despite an increase in supply with a number of high-end hotel openings, London continued to perform well with a high occupancy rate at 86.1%. As occupancy was high, room rate in the regions increased by 11.1% to £64.30 and in London by a 1.3% increase to £139.23. Regional rooms yield stood at £53.28, up 14.4% and yield in the capital increased 0.3% to £119.88. Increased foreign tourism in London meant that hotels in the capital went on to achieve the highest occupancy rate for the month of August since 1999. Occupancy figures for the UK’s capital increased by 2.3% in August 2014, to 87.2%, while room rate was up 3.0% to £133.90. As a result, rooms yield grew by 5.3% to £116.76. Regional hotels also had a strong month with rooms yield up 11.7% to £52.22 when compared to the previous year. Occupancy remained high at 81.7%, an increase of 3.8%. The strong demand also contributed in pushing room rate up 7.7% to £63.95.

More Occupancy Data

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In September, UK hotels performance was boosted by good weather, a healthy mix of corporate and sporting events, and also the NATO Summit in Wales. Strong demand was the main driver of results with regional hotels experiencing a 4.7% increase in occupancy to 83.7%. This helped to push average room rate up by 9.9% to £64.99, and resulted in double digit rooms yield growth (up 15.1% to £54.39). London also saw demand continuing to grow (up 2.9% to 89.1%) in spite of the recent increase in new supply. Rooms yield for the capital was up 2.2% to £119.84 despite room rate being fairly stable at £134.48 (-0.6%). Strong occupancy is great news for the hotels sector and the knock-on effect on room rate hints at growth in the year ahead. UK hoteliers can feel confident about the health of the industry, as the figures continue to show an upward trend.

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More RevPAR Data

Photo: VisitEngland

Choosing where to invest in hotels is a complex process of balancing expected demand against supply and understanding future local, regional, country and wider issues that may affect the success of the investment. Our quarterly analysis provides insights into some of these factors. What to Expect in Q4 Pipeline Supply data shows that 3,690 rooms are due to open in the UK in Q4 2014, slightly down from 3710 last quarter. Of these, the vast majority will be either budget or 4* as these make up 84% of the total - 58% of planned rooms are budget grade and 26% of rooms are 4*. The remaining rooms are made up of aparthotels (6%), 5* hotels (6%) and 3* hotels (4%). This quarter shows the continued rise in the dominance of budget and 4* hotels in the near-term pipeline. The proportion of budget hotels rises from 51% to 58% this quarter, while the proportion of 4* hotel rooms is still in second place, but has fallen over the past three quarters from 45% to 36.5% and now down to 26%. Five star hotel openings are up slightly at 6% against 4% last quarter. Looking at the pipeline for specific cities, London will see the most new supply with 45% of the total city rooms, followed by Aberdeen and Manchester. ‘Other’ locations make up the next largest segment, providing 30% of capacity. This was 36% last quarter, showing that new rooms are slightly more concentrated in major cities. Compared with last quarter, imminent London pipeline is relatively static after a fall six months ago, possibly indicating that London is becoming oversupplied or that prices have kept developers out of the city. Of the regions , London and the South lead

Rooms Opening in Q4 2014 By Major City

Pipeline Data: AM:PM

the way accounting for 70% of all new rooms followed by the North, Scotland and Central making up the total. Although Scotland has consistently followed London and the South, the North takes over during the next quarter, with hotel openings across the Pennines from Liverpool to York contributing 16% of all new rooms. London still takes the largest share by region, with 45% of the next quarter’s pipeline, followed by the South and the North. Openings in the South remain at around a quarter of all new rooms, the same as last quarter. The proportion of new rooms planned for Q4 in Scotland has fallen significantly from 13% to 8% and may be due to previous high supply levels. London has only one new 5* hotel opening planned for the next quarter and it’s in Old Street, not a traditional location for that type of hotel. There is a shortage of suitable properties in London and, when they do come to market, the cost is high especially in prime locations. For some hoteliers this means setting their sights elsewhere. In this case the choice of Old Street may be a smart move. The area is at the centre of the digital economy in London, on the borders of the City, with a vibrant atmosphere and an exciting retail, restaurant and bar scene. For other hoteliers, the difficult investment market means switching to locations in the South with access to London. The total number of rooms due to open this quarter is very similar to the previous quarter– 3710 in our previous report and 3690 this quarter.. In terms of number of hotels due to open, next quarter’s figures are also similar to those of the previous three months reflecting the long term nature of hotel investment decisions.

Rooms Opening in Q4 2014 By Region

Pipeline Data: AM:PM

Changing Visitor Numbers Visitor numbers, both from within the UK and inbound, determine the level of demand and, to some extent, the average revenues per available room. Internal visitor levels tend to reflect GDP, as economic activity drives business travel in particular and, among consumers, the choice of holiday location. ONS data also gives clues as to future visitor behaviour. September’s ONS data showed that the economy expanded faster than previously thought over the second quarter. The UK economy grew by 3.2% in Q2 2014, 0.1% higher than in the equivalent period last year. This is the best economic performance for six years. The economy also recovered sooner than previously thought, with GDP returning to pre-crisis levels. However, concerns over slow economic growth and a possible

personal credit bubble are also growing. UK exports have fallen slightly and the current account deficit has widened to above 5% GDP, a level widely thought to be unsustainable. Combined with the problems in the Eurozone – our largest single trading partner – an improvement in exports is unlikely in the near future. Personal debt is also beginning to cause concern in the UK, with the Bank of England naming the high levels of household debt as a key risk to the recovery. Consumers have increased their exposure to unsecured debt for eight successive months. One of the drivers behind this increase is the ‘feel good factor’ created by increasing house prices. However, if interest rates rise as they are expected to do in 2015, people may struggle to meet interest repayments on mortgages and other debts. Current political and geopolitical uncertainties cast further shadows on future growth in the UK economy.

The latest ONS data for Overseas Travel and Tourism shows that visitor numbers were up 2% in July and 5% between May and July but visitors were spending 4% less per trip. Visitors from Europe are 9% up this year, with 5% growth in business visits, 9% growth in holiday visits and visits to friends and relatives up by 9%. The strong pound may be tempting UK residents to take more foreign holidays as ONS data showed 4% more visits abroad but 5% lower spend compared with the previous year. This might be due to favourable exchange rates, an increase in visits to friends and family and to choosing to visit cheaper countries. It is also worth noting that the long hot summer of 2014 also had a positive impact on staycations. Despite these clouds on the horizon, the immediate future still looks very encouraging and there will are good prospects for continued growth in demand for hotel rooms in the UK.

Photo: VisitEngland/Alex Hare

Budget Rules At 58% of the total Q4 scheduled openings, the majority of new rooms are budget rated, as was the case last quarter. However budget hotels make up only 43% of Q4 openings, indicating that budget hotels have more rooms than the average hotel. Premier Inn continues to dominate the budget hotel sector for the next quarter, opening 1,290 or 46% of the new budget rooms (including one hub by Premier Inn hotel). The remaining budget hotels expected to open in the next quarter are Travelodge with 268 rooms, Motel One with 291 rooms, tune hotels with 236 rooms and Holiday Inn Express with 21 rooms. Hotel Jobs As the number of hotels continues to grow, so does the number of hotel jobs. According to data from ONS, the number of people working in the tourism sector has grown twice as fast as in any other sector over the past

four years. Jobs associated with tourist accommodation have increased by 7.1% in that period. At the same time, employment across the UK has fallen and we now have the highest employment rate since 2008, with nearly 600,000 job vacancies unfilled. ONS data shows that 40% of jobs in tourism are part-time, making the sector unique. When there is a shortage of jobs it is easier to fill part-time positions, however, as employment rises it may become harder to find the right staff for UK hotels. At the same time, the minimum wage rises every October and the Campaign for a Living Wage is gathering supporters, with the Mayor of London encouraging all local employers to pay the London Living wage. So far only 200 have risen to the challenge, but the hotel sector, especially in London, may bear the brunt of these extra costs.

Transaction Trends While a number of single properties have been sold, there has been a significant increase in the number of portfolio sales this quarter compared with the previous two quarters of the year. The reasons for this surge in sales must include the high prices currently being achieved. Owners are realising the gains in the value of their properties. The lack of suitable properties is also contributing to the high values achieved, partly by creating ‘price wars’ as buyers compete to acquire new sites. Among the single hotel sales are two which went to Chinese investors: Beijing-based Reignwood Group bought London trophy Ten Trinity Square and will turn it into a luxury 98 room hotel with partner Four Seasons Hotels and resorts. It also bought the Wentworth Club, which has 12 rooms. Chinese-government owned Greenland Holding Group invested £1.2 billion on two London properties including the former Ram Brewery site

hub by Premier Inn. Photo: Whitbread plc

in Wandsworth, which includes plans for a hotel. We can expect to see more of these as Chinese government encourages investment in gateway European cities, especially London and Paris, and Chinese investors see perceived value as well as the opportunity to acquire ‘Golden Visas’ where certain types of property acquisitions automatically confer EU residency. For the next quarter we would expect the hotel sector to be buoyant and for transactions to continue on an even keel. High levels of competition for London sites are likely to continue, although whether the same volumes of portfolio sales will continue in Q4 is harder to predict.

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The quality of a hotel’s F&B offering is often a key driver of profitability; long gone are the days when running a hotel was purely about beds! Yet, while many hoteliers rightly obsess over bookings and beds, this valuable additional income can sometimes be overlooked. The size of the opportunity ranges from an additional cup of coffee or aperitif, to hoteliers adding more than 50% to their revenues per guest through a high-quality and varied F&B operation. In order to do this, it is vital that we stay on top of our game. We have to create environments, and food and beverage offerings, that people want, and which play well against the many and varied rival options available to guests in the hotel’s local markets. Therefore, we have to know what’s going on, and to this end, here are five key trends that we see emerging in the hotel sector: 1. Do You Need Partners? We are seeing a lot of hoteliers partnering with food and beverage specialists. These arrangements vary from consultants offering ad hoc advice to full joint ventures, with entire food and beverage programmes outsourced to a specialist operator.

The attraction is that it brings absolute focus, with partners concentrating on their expert area: hoteliers on beds, F&B experts on food and beverage. Consequently, it is not uncommon for a hotel to see a material uplift in average room rate and nightly occupancy when working with these external specialists. Such partnerships tend to drive footfall to the hotel, meaning that you get a greater variety of guests, many of whom are not just in the building because they have a room reservation. 2. Casual Dining and Informality A sit-down meal or a high-quality dining experience used to mean white tablecloths and silver service but nowadays, we see little correlation. The growth of chef-driven restaurants is slowing down and the impact of casual or informal dining is being felt everywhere; both in hotels and across the food and beverage sector. People crave informality, whether it’s the food itself or the style in which it’s served. People still want high-quality but without so much of the pomp. People’s food repertoire is expansive, which is reflected in the abundance of choice available today, and the growth of (most notably) noodle, pasta and salad bars.

This is also reflected in hotels, where the key is having offers that speak to this broad spectrum of demand. Flexibility is key, as is warm, unfussy service that engenders a relaxed but fun environment, where people feel they can let their hair down. 3. Eat in a Bar, Drink in the Kitchen Linked to informality, food and drink environments are completely merging. If we go to a restaurant, we will have a cocktail. If we go to a bar, we are just as likely to order food – be it something light and quick, or something more substantial. The small plate (or tapas-style plate), long the preserve of the bar, is much more common in a restaurant environment, and the reverse is true in bars, which are majoring on extensive food menus. This blurring of the lines is reflected in design – restaurants are making a bigger play of their bar and more bar operators are introducing big, centre-piece open kitchens. In America they speak of this trend reflecting consumers’ desire to “eat at the bar, and drink in the kitchen”. It’s placing greater demands on front-of-house staff, who at the premium end of the market, are expected to have extensive knowledge of both the food and drinks menus.

4. Vibe Dining We’re big believers in vibe dining, which combines food, drink, atmosphere and music - and often sees guests arriving long before their table is ready, and staying with us well beyond the meal. They can enjoy all the elements of a night out under one roof. Our upscale STK steakhouse brand is built on vibe dining – we place special emphasis on the bar area (where the party starts), we play music slightly louder than would be the norm and employ a DJ to “read the room” and ensure we play the right music to the right crowd. We know that if the DJ finds the right music, our guests stay with us for longer, they spend more on food and extra drinks, and they transition seamlessly from dinner mode to party mode. The power of music is often over-looked, particularly in hotel F&B environments.

5. By the Bottle, at the Table Two big trends combined are impacting the way people order drinks. Sharing a bottle used to be the preserve of the wine and champagne category, but now it is happening across the drinks market, notably in cocktails and spirits. This is driven by a greater desire to share and also by the on-going move to premium brands. Hotel bars and cocktail bars are leading the way in creating ‘drinking experiences’ which are bespoke to their venues and offering VIP table service, which creates a unique experience for the guest. This trend emphasises the need for us to focus on luxury and we need to be ahead of our game in making our customers feel like they are ‘number one’.

By bringing in some of these services to your outlets, you can develop a vital USP! The trends outlined above are all linked to informality and fun. Food, drink and entertainment are merging. This presents an opportunity to broaden our hospitality offerings and widen our profit potential. Don’t be scared to try something a little out-of-the-norm, review your competitors and, most of all, make sure your customers are really having a good time!

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Claiming a 9% share of room revenues in the UK travel accommodation market, Hilton Worldwide occupied the second spot behind Premier Inn in 2013. The UK is a key market for Hilton Worldwide and sales have grown steadily as it has expanded its portfolio and grown its market share, up from 7% in 2009. Diversification Diversification has been the key to growth. In 2007, Hilton only had three hotels not under the Hilton brand in Western Europe. But, by 2014, the number has shot up to 107 non-Hilton brand hotels. This has played out in the UK, with the DoubleTree brand going from strength to strength. Hilton: Largest Number of Outlets As of 2014, Hilton Worldwide has just under 120 establishments across the UK. All three of Hilton’s brand portfolios are present: luxury (Waldorf and Conrad); upscale full-service (Hilton and DoubleTree); and focused-service, spanning upscale and upper

mid-scale (Hilton Garden Inn and Hampton Inn). The best represented brand in the UK is Hilton, which accounts for 60% of its outlet numbers. In the UK travel accommodation market, Hilton was in second place with a 7% share of room revenues in 2013. Despite slight growth in sales from £445 million to £447 million, its share dropped slightly during 2013, as the brand underperformed at category level. Mid-scale Hampton Inn also saw a sales increase in 2013, although its share of room revenues remained static at 0.2%. It has 14 outlets across the UK. Of these, only four are in London, and only one of these four is in Zone 1.

The remaining outlets are spread across the UK’s smaller towns and cities. Both of the company’s luxury brands are also present in the UK, with Waldorf Astoria located in Edinburgh and a Conrad hotel based in the heart of London (Westminster), where rooms start at £400 per night. DoubleTree Although Hilton and Hampton Inn posted respectable performances over the last few years, the brand that is really driving company level sales is DoubleTree. DoubleTree more than doubled its sales between 2009 and 2013 to £91 million. In 2013, DoubleTree had a 1% of share of room revenues in the UK, and by 2014, it had 24 UK locations.

Company % Shares of Room Revenues (UK)

Company 2008 2009 2010 2011 2012 2013

Whitbread Plc 7.7 8.3 9.3 10.6 11.2 11.9

Hilton Worldwide - 7.4 7.9 8.6 8.8 8.8

InterContinental Hotels Group Plc 6.5 6.2 6.5 6.7 6.8 6.9

Travelodge Hotels Ltd 4.2 4.6 5.3 5.7 6.0 6.3

Accor Group 4.5 4.7 4.7 5.6 6.1 6.2

Best Western International Inc 3.3 3.0 3.1 3.5 3.7 3.8

Marriott International Inc 3.5 3.4 3.1 3.3 3.4 3.5

Wyndham Worldwide Corp - - - 1.1 1.2 1.1

Jarvis Hotels Ltd 1.0 1.1 1.0 - - -

Hilton Hotels Corp 6.9 - - - - -

Others 62.4 61.4 59.1 54.9 52.9 51.4

Total 100.0 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International

DoubleTree Powers Growth The key to UK growth in recent years has been the DoubleTree brand. The name is used by independently owned hotels, operated under a franchise. In August 2014, DoubleTree opened its 10th London hotel in fashionable Islington. This followed hot on the heels of the recently opened DoubleTree Chelsea. Both deals operate under a franchise agreement with Jury’s Inn. DoubleTree Islington opened after a multimillion pound revamp and the addition of 143 new rooms, including 66 deluxe and 43 executive rooms, a new bar and business and fitness centre. DoubleTree aims to offer a friendly, approachable service experience, exemplified by a chocolate chip cookie being served to every guest on check in. The openings in London leverage industry trends, as London’s travel

accommodation market bounced back in 2013 after a disappointing year in 2012. In the second half of 2013, London saw a strong increase in occupancy rates, as the economy gained momentum and the UK was proclaimed to be outperforming its EU neighbours in terms of GDP recovery. All this was good news for the business segment in particular. Mobile Initiatives In August 2014, Hilton Worldwide platformed a number of key initiatives under the umbrella of customising guests’ experiences by utilising the latest technology. By 2016, under the company loyalty scheme, HHonors, guests will be able to check in and select their room(s) from a computer, tablet or mobile. Such initiatives will enable Hilton to play technological catch up with Marriott and Intercontinental Hotels Group.

They will also allow it to remain relevant to a target group which is growing in importance, the Millennials, and which relies heavily on mobile phones. Hilton Worldwide has focused its online strategy on driving traffic to its direct channels, both online and mobile. It has launched a new enhanced app for its HHonors program. Mobile revenue doubled in 2013 alone, having grown eightfold since 2010. The company’s strategy on social media is focused on it being on fewer social media channels in order to deliver a more exclusive experience. Hilton Worldwide is active on Instagram, Facebook, Twitter, and Google+, with a few brands on YouTube, Linkedin and Weibo. In April 2013, DoubleTree created a channel on YouTube called Dtour, where guests can select a location and then upload photos, videos and travel advice.

Hilton’s 10th London hotel in Islington

Despite the focus on its own channels, Hilton Worldwide also works with online travel agents such as lastminute.com in the UK. More to Come Strong Q2 2014 figures saw Hilton Worldwide exceed RevPAR expectations and raise its full-year 2014 outlook. It looks as if current strategy is paying off for the company, both at global and UK levels. And, there is much more to come in the next few years as Hilton Worldwide realises its vast pipeline globally. In Western Europe, new launches will

be centred on the limited service brands such as Hilton Garden Inn and Hampton Inn. In the UK, there are pipeline hotels across its entire brand portfolio. Price sensitivity in the UK will be a key barrier, but Hilton Worldwide’s focus on limited service as well as full service looks like a strategy that will pay off. Reliance on internet booking will grow in importance over the short term and, here, the company will have to utilise the internet and other technology as an integral tool for growth. Moving from full service to limited service, from top-end luxury to mid-priced, keeping a visible presence in

urban hipster areas as well as quiet out-of-town spots, and focusing on technological innovation, Hilton Worldwide has its finger on all the key trends. However, with such a vast pipeline, care must be taken not to overstretch and compromise on quality.

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The Independent Hotel Show returns to Olympia this October (21 & 22) with the promise of even more insight, advice and inspiration for the UK’s burgeoning luxury and boutique hotel sector. Now in its third year the show has become the must attend event for anyone connected to the hotel and hospitality sector, featuring a one-stop business platform of over 250 handpicked premium products and services, business seminars and advice clinics. Discover the Best Featuring a range of handpicked, premium essentials to equip your hotel, exhibitors at the Independent Hotel Show represent the cream of

the industry, helping your boutique or luxury hotel stand out from the crowd. With categories including interior design, technology & software, audio & entertainment and health & wellness the show is home to a wealth of products and services to help boost the profile and profitability of your business. Confirmed exhibitors include:

Mulberry Home

Tivoli Audio

Smart Fire UK

Coach House

Airwave Europe

Agentia UK

Frame Your TV

Toto

Richard Haworth

Abraham Moon & Sons.

Leaders in the Field Gain insight and inspiration from the hotel industry heavyweights across a range of subjects as the Independent Hotel Show 2014 tackles and presents the hottest topics of the sector. Design, technology, marketing and business experts are scheduled to present a range of free to attend business seminars and panel discussions to help streamline the running of a profitable hospitality business and boost revenues. Sessions run throughout the two-day show across two theatres. For ideas, insight and inspiration, visit the Business Theatre, sponsored by

Towergate Insurance, and the Innovation Stage, sponsored by software giant, MICROS. Highlights include a Q&A session with leading General Managers, Philip Newman-Hall from Le Manoir aux Quat'Saisons and South Place Hotel’s Bruce Robertson; along with an in-depth discussion about the importance of brand and personality, led by James Lohan from Mr & Mrs Smith. Robert Nadler from Nadler Hotels and Julian Troup from Colliers International Hotels will also be looking at the ‘big picture’, reviewing the current state of the UK hotel market and offering insights into the opportunities and risks for hoteliers of all shapes and sizes.

The Hub, at the Heart of Hospitality Let the freshest creative talent in the hospitality industry inspire you to meet, talk and share ideas with your peers as The Independent Hotel Show showcases the rising design stars of the sector. An innovative and inspirational central networking point, The Hub 2014 was designed by Nina&Co in collaboration with Anya Fennet. Their winning concept is built on the very idea of finding inspiration within the Independent Hotel Show and having that light bulb moment. The design was selected by a panel of leading judges, including architect, Mike Stiff, product designer, Afroditi

Krassa and design journalist, Guy Dittrich, as a creative focal point to help draw businesses together at the show. Offering a relaxed and information space for delegates to meet up, The Hub promises to push the boundaries of innovative interior design. Hansgrohe VIP Lounge For a more intimate meeting, relax and network over a drink or two with key industry players in the Hansgrohe VIP Lounge, a haven of calm at the heart of the show. Supportive business advice from Buell The Buell Business Support Clinic offers a one stop shop for advice on all aspects of business specific to the

independent, luxury and boutique hotel industry. Sessions are available on a one-to-one basis, with specific advice offered for owners, operators, developers and investors into the sectors. From customer service, interior design, food and beverage, revenue management, marketing and technology, a Buell representative will be at hand to offer first hand advice and solutions for your business. For more information on the topics covered and to book your session visit: www.independenthotelshow.co.uk/bbsc

Independent Thought Series The Independent Hotel Show continues to spark debate within the hotel and hospitality industry, offering insight, advice and ideas from key industry leaders. In the weeks running up to the show a series of thought leading pieces have been published on: www.independenthotelshow.co.uk/IndieThought The ‘Independent Thought' series will provide a collection of inspiring tips on how to develop and improve your business, whether you’re an independent, luxury or boutique hotel.

With the UK’s definitive business event for the luxury, boutique and independent hotel market less than a month away, it gives us great pleasure to present our show preview; an introduction to some of the exciting elements and new additions you can expect to experience at this year’s show. The event is free to attend and offers unrivalled access to contemporary hospitality thinking - whether it be trends, products or services that excite you most, the Independent Hotel Show devotes attention to all that impacts your business and ultimately your bottom line. We invite you to enjoy a unique opportunity to touch,

see, meet, build relationships and share knowledge with industry peers and thought leaders. To register simply visit independenthotelshow.co.uk For those already attending don’t forget to reserve your space on one of our business seminars, tackling some of the hottest topics in the industry and featuring an array of business leaders including Robin Hutson, James Lohan, Fiona Duncan, Mark Fuller and many more. Or sign up for one-to-one advice at our Buell Business Clinic to receive first hand guidance from some the sectors leading experts. Luke Perry, Event Director, Independent Hotel Show

Tuesday 21st October: 10:00 - 17:00 Wednesday 22nd October: 10:00 - 17:00 Location: West Hall, Olympia Exhibition Centre, Hammersmith Road, London, W14 8UX independenthotelshow.co.uk

http://www.independenthotelshow.co.uk/

Achieving an aspirational interior design scheme is often near the top of most independent hotels’ to-do lists. But, with increasing pressure and responsibility on the shoulders of general managers, making time for this can be difficult. However, there are ways for hoteliers to achieve a stunning look and feel on a budget to ensure quality is always front of house. With independent hotels coming in a range of shapes and sizes, and housing anything from 10 rooms to 300, a blanket approach to design is impossible, but there are themes that run throughout the industry that shouldn’t be ignored.

Refurbishment Cycles Hotel refurbishment cycles currently sit at between 5-7 years and, somewhat worryingly, 23% of hoteliers will only refurbish bedrooms and public areas when they begin to look tired. Exactly what defines ‘tired’ will undoubtedly differ from hotel to hotel. Without the reliability and stability often offered by a chain, independents cannot afford to give the wrong first impression, whether online prior to booking or when guests arrive. Times are a changin’ for hoteliers though. The number of hotels that Beacon Design Services and its strategic design partner, Dakota

House of Design, have worked with on their interior design has trebled compared to two years ago (in 2012 only 25% of hotels outsourced their design and refurbishment ). This is due to a combination of factors including a rising confidence in the economy and a lack of capacity for hotel staff to manage these projects internally. This increase in outsourced design and refurbishment requirements reflects the greater competition within the industry when it comes to attracting guests who are no longer simply booking direct with the hotels themselves, but relying on reviews from online travel agents. Hotels must look welcoming from the

first click on Trip Advisor to ensure that premium rates for rooms can be secured, guest satisfaction is high and repeat custom is achieved. Outsourcing Design Hoteliers no longer have the time or capacity to manage such projects themselves, when there are more business critical tasks to consider, and now feel more comfortable in outsourcing design and refurbishment. Many clients who have previously managed this work internally have made the decision that their return on investment is much greater for them when outsourcing their design work, and their time is better spent on running their hotel operations. One of the main disadvantages of managing a design project internally is often the lack of “bigger picture thinking”. Using an external designer will help you plan to attract your future guests, not solely your current demographic. And, while internal projects tend to be more conservative, it is worth remembering that a lick of paint and soft refurbishment can often cost as much, if not more, than a more extreme design change. New Ways of Looking The benefits of working with a third party supplier not only solve some of these challenges, but introduce a fresh pair of eyes to your hotel - a pair of eyes that can advise on not just the aesthetics but things like disabled access, the flow of the rooms and the needs of the next generation of traveller. They should completely understand what it is that guests want and expect from a hotel room – beyond the traditional kettle and trouser press. Décor will also be looked at more operationally, space will be optimised

and both national and international influences can be introduced where relevant if a well networked and experienced design partner is chosen. Ultimately, if you get the right team in place, you’ll be on the receiving end of a seamless journey, through any design project from conception to implementation. Supplier Leverage The consolidation of purchasing through a limited number of suppliers should also be taken into account when managing your project and deciding on your requirements. Through working with a third party or purchasing organisation you not only benefit from negotiated pricing, but

you will usually enjoy longer warrantees with trade quality products, giving projects more longevity. Introducing a timeless design with better quality items, such as linens and soft furnishings, will inevitably mean you will stretch the life of your design further. Independent hotels, as with any business, cannot afford to give the wrong impression and must offer guests a different experience than their chain counterparts can provide.

T: 01904 695 588 W: beaconpurchasing.co.uk

A lot of hoteliers might be wary about putting a budget on the table due to fear of it all being spent ‘for the sake of it’, or it being deemed too low but, we need to know what we have to work with so we can make appropriate recommendations. There are different ways to achieve different looks and material choices can be altered according to budgets – it’s all about finding the right supplier, the right product and the right price so that the options put to customers are always achievable.

You need to choose a design partner who is willing to get under the skin of your business, understand your requirements and respond to them in line with the brief – rather than go off on a tangent in a way that would never be appropriate for your hotel.

There is nothing worse than changing your mind half way through a design or refurbishment project – and your budget will well and truly go out the window.

HR is changing fast. If you don’t believe me, research the characteristics of Generation Y. A seismic economic shift creates a new landscape. New landscapes mean the some well-worn paths no longer exist. The old way will not be the new way and changing views will require new thinking which, in turn, require new strategies. That’s one influence but new generations are decidedly different. They see the world very differently. Is your HR policy ready to emerge from recession and manage new attitudes? So what’s coming down the line for HR Management in 2015? The short answer is, “lots”. The Law: There’s a difference between understanding HR procedure versus Employment Law. Law changes fast and even the best HR Managers often don’t know the difference. In a litigious society where loyalty is thin, you need to be protected, up to date and compliant. Many think they are, but discover they’re not in the bosom of Court. Loyalty: Generation Y and Z value recognition very highly. Yet, they are loyal to themselves, their career and their ambition. ‘Loyalty’ is now far more complex than lip service. Smart

hotels are already strategising around this. Outsourcing: There are many HR managers who evolved into the role because, as one hotelier said to me recently, they are “good with people”. That’s dangerous. HR departments need expertise, not hugs. Over the next year, much higher and specialised expertise will be needed. In most cases, the regular hotel HR Manager will be a generalist rather than a specialist. The future requires niche expertise and that will lead to the growth in outsourcing and the death of average generalists. Outsourced Expertise: Beware of slick marketing that tells you that outsourced HR companies are the answer to all your worries. Read the terms and conditions first. I have come across far too many hotels who outsourced their HR to discover what was not included when the day in court dawned. Psychology: Psychology will become a much bigger part of business and understanding how we impact on people. Smart hotels are already on top of this. If you care about retaining your best staff and managing your loose cannons, then isn’t it worth investing in? Generalists: The world is full of “training generalists”. Take a look, a deep look, at their web page, their CV

or their client list. It doesn’t take long to see that generalists are experts at very little and that will be reflected in the quality of their training. Specialists will get busier and generalists will die. Training and Content: Boring, dull, monotone lectures won’t teach new generations anything. They need to be engaged, involved and excited. People learn in different ways. Really good training and development acknowledges that and designs training around a real understanding of how young people engage. Similarly, dull content, often bought, franchised or roll out since the beginning of time, will kill enthusiasm and that will play into the hands of your competitors. Recruiting: Recruiting will become more difficult for HR Departments for three distinct reasons: 1. As we emerge from recession,

employees will have more options.

2. How you recruit using traditional interview routes will not appeal to Generation Y or Z.

3. Your reputation in the community will be paramount. How’s it looking?

Performance: Are you counting hours or productivity? There’s a difference. Young generations do not adhere to 9-5. In fact, left to their own

devices, they work longer. As more and more people work from home, the challenge in the New Year is how you measure performance and productivity, not the hours behind four walls. Social Responsibility: On its own, no clear social responsibility programme or commitment, is a very good reason for young people not to want to work with you. If you have not engaged meaningfully with those less fortunate, Generation Y simply won’t engage with you. Support: Work is your daily village for an enormous part of our lives. It would be great if we were emotionless machines that ran forever. We don’t. Emotions, ill health, fear and more conspire to inhibit performance. The old way of being dictatorial and intolerant of human frailty will certainly get a quick response. The problem is, the response won’t be one that benefits you. The most important part of any business is the people who live there. They are your brand. How you treat them will say a lot about your brand and, more importantly, about your future prospects. Tread carefully, it’s all change for the world of HR.

Conor is the founder and principal of Conor Kenny & Associates in Ireland and the UK's leading independent training, HR and L&D company for the hospitality industry. He is also the author of Sales Tales. Discover more: www.conorkenny.com

You know that moment when you ask someone for their feedback or opinion and they say one thing, but you hear from the hesitation in their tone that they think something different? Well, that’s the beauty of face-to-face feedback. So often when I discuss with clients how they gather guest feedback, they refer to a questionnaire or comment card - be that online or a physical document. There’s no doubt the feedback you gather from guests can be valuable. Without it, how do you know what’s working and what’s not, and how to build on the good and put right the not-so-good? So gathering guest feedback via some kind of questionnaire is surely better than nothing? But it is a far cry from direct, face-to-face in-the-moment feedback. Here are seven reasons you might not want to solely rely on questionnaires for feedback: 1. In the Know If you don’t know about any issues until you get back the questionnaire, 9 times out of 10, it’s going to be too late to resolve things before the guest leaves or ends their relationship with

you. By which time, if they feel strongly enough, they will have already told the whole world via TripAdvisor or Yelp! 2. Awareness Whilst you are still blissfully unaware of any issues, other guests continue to be affected in the same way. 3. Engagement It’s too easy to ignore a questionnaire. It’s an interruption, often overly long winded and there may be little incentive from the guest’s perspective once the moment has passed. 4. Discover Everything! A questionnaire can’t cover every conceivable aspect of your service - or if it does it will be way too long and likely to get the guest to abandon it half way through. So it is easy to miss things that are important to your guest. 5. Immediacy There is often a time lag in which the facts can get forgotten or distorted. Negative experiences can get amplified and positive ones diluted in the guest’s mind. Likewise, you have forgotten the specifics which means following up becomes more time consuming as there is invariably a lot of back-tracking to be done.

6. First to Know Your guest has had the chance to tell others before telling you ... and we all know that these days it is not just one or two close friends! 7. Personal Finally, the biggest drawback is that the feedback you receive is impersonal and one-way. It can loose those all-important subtle nuances that you can get when conducting face-to-face dialogue. With so many fundamental flaws, don’t just rely on questionnaires. Rather, you should get out there and ask your guests directly what they think and how you can make their experience even better. However, we have to accept that sometimes feedback is not forthcoming. Nor is it practical to hear everyone’s feedback right away. That’s when we need to be keeping our “ear to the ground” and listening to what our guests are sharing amongst themselves. Stop and think for a moment just how many businesses are being talked about every hour or every day on social media – whether that’s Twitter, TripAdvisor or any one of hundreds of others.

Tracking Feedback With so many feedback channels, how do you keep tabs? As a minimum, set up Google Alerts for your name and business so you know when you’re being talked about. Although you will not get instant feedback, you can set this up so you get notifications as they happen, daily or weekly. If you wait a week to find out then it is too late! Of course, this means resolving guests’ queries and complaints. And what better way to appease a disgruntled guest than picking up on their post, thanking them for their feedback and responding straight away when they are least expecting it. Guest feedback doesn’t always equate to negative feedback. Think how often your guests say great things about you, share photos and even let their friends (and you) know that they are coming back to visit you. These moments present a fabulous opportunity to engage with your guests, share their enthusiasm and generate positive word of mouth. So whether it is in the real world or in the virtual world, don’t hide behind a form or bury your head in the sand: ask, listen and act on your guests’ feedback.

Caroline Cooper is a speaker, author, trainer and consultant on customer service and loyalty. She’s founder of Naturally Loyal, specialising in helping businesses retain more of their quality customers. She is also author of The Hotel Success Handbook Discover more: www.naturallyloyal.com

Following on from my last column in the last issue of Hotel Industry Magazine, How Guest Emotions Impact on Hotel Revenue, I wanted to explore the impact of attitude and the emotions of your staff on hotel performance. Take a look at this sign that I saw in a restaurant recently. Does this apply to the guest experience your teams deliver? Yes? Sometimes or never? Why does this happen? Each member of your team chooses the attitude they bring to work every day, and this has a huge impact on their performance, your guest experience and hotel revenue. Attitude is affected by how we think and feel. Through self-awareness and management of our emotions, a good attitude has a huge effect on the Guest Experience. Staff with positive emotions and a positive, “can do” attitude add so much more value to hotel performance. They are more productive, demonstrate empathy and care for guests and deal effectively with challenging situations and difficult team members. Excellent guest relationships can only be developed when staff are happy. Positive thinking and emotions are needed to drive positive language to

make your guests feel valued and special. Happy guests stay longer, spend more, return and tell more positive stories about you. Staff with a negative attitude and negative emotions damage team morale and performance, destroy the guest experience and your reputation. Their negative emotions inevitably end up at your door as a complaint or displayed on your TripAdvisor page. As a hotel leader, here’s what you can do to support your team and positively influence your employees’ emotions: 1. Emotional Intelligence Training Emotional Intelligence Training provides skills and strategies to develop self-awareness, self-management and coping strategies. Help the team with rapport building

and empathy skills too, as these are not natural for everyone. 2. Empowerment Staff are happier, more productive and serve guests better when given the freedom to do their job. Clear boundaries are needed to allow them to treat guests in the way they like to be treated. If there are too many rules, employees don’t act spontaneously to create magical moments for guests. 3. Manage Employee Expectations Staff expect more from their employees today. They want regular, in the moment feedback. They want to know exactly what is expected of them and how their role affects the guest experience and the whole business performance. Younger staff may seem impatient

and want to challenge decisions, but they are hungry to learn and committed if you take the time to understand them. A mentoring programme creates positive staff who then feel you care about them. Regular, honest and transparent company communication makes staff feel involved in the business. 4. Leadership Role Modelling Visible, supportive leaders with excellent coaching skills are needed to create a positive environment. The hotel values and standards must be reflected in all managers’ behaviours. There must be no ‘say-do’ gap. Employees watch their leaders and adopt what they perceive to be acceptable to the company. Leaders who are quick to recognise and reward success, give staff a voice, allow input into decisions that affect them and create meaning for their work have engaged and happy employees. It is key to also find time for some appropriate fun at work and socialise with staff. Hospitality is a demanding and tough environment. Fun workplaces are not only more productive, they attract the best staff and guests and profits.

Anne Blackburn is the co- founder of the award winning Sidona Group. As Customer Experience Director, Anne specialises in mystery guest programmes, guest research, guest experience training and conference speaking. Discover more: www.sidonagroup.com

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