The domestic tourism boom helped London's hotels survive 2009 while Holiday Inn was given its first makeover in 50 years and Butlins opened a £20m spa hotel in Bognor Regis. As the year draws to a close take a look back with BigHospitality at the major hotel industry events of this year.
Folio hotels saved and sold on
Having gone into administration in December 2008, the 36-strong hotel group was saved in January with Bespoke taking over 13 hotels before Folio's former management team formed a new company called Mulbourn, saving another 18. Then at the end of November the newly-formed Akkeron Hotel group, led by Citibank’s former global head of real estate and lodging, James Brent, Colin Johnston, managing director of Clear Healthcare, and Matthew Welbourne, formerly managing director of Mulbourn, bought eight of Mulbourn's sites with plans to build a portfolio of 150 regional hotels in the UK. Another seven of Mulbourn's former Folio sites were then acquired by The Vineyard Group, operator of The Vineyard at Stockcross and Donnington Valley Hotel.
The budgets go into battle
As the recession took hold the budget sector grabbed its chance to capture the attention of cash-strapped holidaymakers and business travellers. Travelodge announced it would be cutting its prices in January, lowering the cost of some rooms to as little as £9 per night, and then went for the the corporate market, launching its first business account in February. Premier Inn slashed its prices too during the year, launching its biggest ever room sale during October half term. The plan seems to have worked: As many mid-market hotel chains found themselves struggling the budget hotel chains - notably Travelodge and Jurys Inns - announced investment and expansion plans throughout the year.
The independents find it tough
Bad news for the owners of The Ellington (pictured) in Leeds, The Great Northern in Peterborough, The Forbury in Reading, Barnsley House in The Cotswolds and Charlton House in Shepton Mallet who all saw administrators take over their hotels in the first half of the year as the recession took hold and operators found the financial climate too hard to bear. The good news was that many of the hotels found new owners as new and existing operators saw their opportunity to grab themselves a bargain.
Philanthropist sells £16m hotel for charity
Brian Burnie, who spent 12 years turning Doxford Hall in Alnwick, Northumberland into a country house hotel, put the property on the market in May with the announcement he would be donating all proceeds from the sale to cancer charities. Burnie hoped to find a buyer within six months of putting the four star hotel on the market so he could donate money to the cancer charities who helped treat his wife Shirley for breast cancer, but the hotel still remains in the couple's hands today.
Plans for London's largest hotel unveiled
Park Plaza Westminster Bridge, the largest hotel to be built in the capital received a visit from London mayor Boris Johnson in July who put the final bolt in place at its topping out ceremony. The 1,021-bedroom hotel, built on the site of the former GLC building has since confirmed the return of chef Joel Antunes to London to oversee dining there and will open in February next year.
London's hotels benefit from domestic and overseas tourism boom
Predictions that Britain would see a tourism boom this year looked like they might not come true as rain fell heavily in July. However, less than 1 in 10 British holidaymakers decided to change their plans to holiday at home and were joined in the British Isles by their European and American counterparts who were attracted by the weak pound. London's hotels were the biggest winners in the industry with revpar up 10 per cent in November on the same month the previous year.
Butlins enters spa hotel market
Butlins, better known as the home of the red coats and holiday chalets went up-market with the opening of the £20m Ocean spa hotel at its Bognor Regis resort in August. The 200-bedroom hotel features designer decor and includes a 670-square metre spa with 10 treatment rooms, disco lifts and snow caves, plus a 246-cover bar and restaurant where diners can eat Chateaubriand if they so wish.
Intercontinental Hotel Group rebrands Holiday Inn
IHG's plans to relaunch its Holiday Inn brand worldwide gained momentum with 50 out of 200 properties given an upgrade in the UK. The hotel company, which includes Holiday Inn Express, is planning to spend £600m on upgrading 3,200 properties around the world and is giving the Holiday Inn logo its first makeover in 50 years. Holiday Inn was also given a boost in July after it was announced as official hotel partner for the 2012 Olympics.
The Dorchester Collection sets foot in the countryside
The Dorchester Collection, until now more at home in the world's biggest cities, announced plans to convert a country pile in Ascot, Surrey into a country house hotel as part of the company's 'ambitious' plans for growth. While work begun to turn the former Georgian manor house into a luxury hotel and spa, the company managed to persuade The Vineyard at Stockcross' executive chef John Campbell to join them as their new director of cuisine, food and beverage.
Calls for VAT rate reduction
As we contemplated the return in January 2010 to the former VAT rate of 17.5 per cent, accountancy firm PKF called for the introduction of a 5 per cent VAT rate for UK hotels to help them remain competitive with their French and German counterparts. The firm called for the re-tabling of an Early Day Motion that would give the issue more publicity and more chance of change. The British Hospitality Association responded by saying it would launch a study into the impact reducing the rate would have on the industry.