Between 29 September and 1 October 2024, senior representatives from across the UK hospitality industry will head to Manchester for the Annual Hospitality Conference (AHC).
This year’s speakers include renowned investor Luke Johnson, political commentator Robert Shrimsley as well as senior representatives from Whitbread, Starwood Capital and Pandox.
Not only will you hear from leading hotel investment executives, but the multiple networking opportunities mean you’ll be able to capitalise on the return to dealmaking we are seeing this year.
You can book your ticket here.
Development has become more of a challenge post-Covid with build costs pushing brands and investors to get creative when it comes to growing their portfolios.
We recently caught up with Adela Cristea, vice president development UK, Ireland & Nordics at Radisson Hotel Group to get a handle on the landscape.
Cristea will be speaking on a panel entitled 'UK Hospitality Development: Trends, Challenges, and Opportunities' at this year's AHC (Monday, September 30, 2024 4:25 PM to 5:05 PM).
Hospitality Investor: What are some key trends you’re observing across the UK hospitality development sector?
Adela Cristea: Commercial real estate is suffering due to the increased interest rate, whereby the market is shifting further to being a buyer’s market. Within the various asset classes, hospitality is reporting stable and growing performance (compared with the office or residential markets), attracting interest from a more diverse investor/developer pool.
Radisson Hotel Group’s growth plan is focusing on strategic geographical expansion, with fully updated brand architecture and relevant solutions in each segment. Focus is continuing to grow through our asset right strategy, with a combination of different contract types and a heightened focus on conversion opportunities.
Conversions have kept us busy over the past few years, and continue to do so. We try to support our owners to make the projects as efficient as possible by optimising the spaces, adapting to the sizes and facilities in each project, and maximizing the return for the investors.
Hospitality Investor: How is Radisson Hotel Group leveraging sustainability initiatives or other strategic initiatives to enhance its market position in the UK?
Adela Cristea: Radisson Hotel Group builds on a long tradition of being a responsible business, with its first environmental policy defined in 1989. The hotel group is committed to becoming Net Zero by 2050 and has published validated targets (Science Based Targets), taking active steps towards this goal.
There are three levers in this transformation: 1) green hotel buildings, by increasing energy efficiency, building certifications and electrification of installations, 2) green energy with the transition to renewable energy and 3) green operations.
The theme of this year’s event is “Proven Paths, New Horizons”. What new opportunities do you see in the travel and hospitality sector?
One trend we see is the increased demand for sustainable and eco-friendly accommodation. We are growing rapidly in the UK & Ireland, and over the past year, we have signed more than 10 deals with 1,400 guest rooms across the region. Many of these properties are new-build, which allows us to build first class properties when it comes to energy efficiency.
In our hotels, we have many responsible and green initiatives like Carbon Compensated Meetings, reduction of food waste, avoidance of single-use plastics and sourcing local food produce.
Another trend is the acceleration of digital transformation across the industry, with the integration of advanced technologies, online check-in, personalised digital experiences and more creative meetings. This digital shift enhances the guest experience by offering convenience and personalisation, while also improving operational efficiency.
Hospitality Investor: With rising build costs and supply chain disruptions affecting the entire industry, how is Radisson Hotel Group managing these challenges?
Adela Cristea: We are supporting owners in navigating inflation, manage risks, and making smart investment decisions.
Inflation highly affects operational costs, which are largely the cost of goods sold, labour, and utilities. In times like these, hotel owners need to be able to find creative ways to optimise the business. They may be in the form of upskilling staff in order to be able to be more flexible and bring new talents. We have also introduced hotel efficiency processes based on technology like Hotelkit.
We are implementing systems and technology such as BMS (building and room controls), efficient AHU (air handling units), heat recuperation, efficient pumps, LED lighting and controls etc.) that are more sustainable and decrease operational costs. We are installing renewable energy, which allows for HLP reductions with short and sharp ROIs.
Hospitality Investor: In today’s environment, how important is collaboration between developers, operators, and investors in hospitality? Can you share any examples where collaboration has been key to a successful project?
Adela Cristea: Radisson Hotel Group’s growth strategy is asset-right and collaboration between developers, operators and investors is paramount, especially in today’s environment.
We are relentless in creating more opportunities for our owners and guests and we believe in long-standing relationships based on trust, responsibility, and accountability. The challenges of high development costs, shortage of labour and increased inflation means it’s more important than ever that all stakeholders are aligned and we, as a manager or franchisor, are flexible in our approach, offering tailored proposals and solutions to our different owners and projects, and recognising each owner is unique.
Our asset right approach means not shying away from taking on strategic leases or guarantees if necessary. We are proud that more than 65% of our owners have more than one hotel with us.
Hospitality Investor: What is your strategy for working with local authorities in order to get deals done?
Adela Cristea: We have worked closely with Sheffield City Council on our newly-opened Radisson Blu Hotel, Sheffield. With stunning views overlooking the Town Hall and The Peace Gardens, this hotel features a sympathetically restored Victorian façade and timeless design, making it a stylish addition to the uniquely vibrant Yorkshire city of Sheffield. As part of the ‘Heart of the City’ regeneration project that Sheffield is currently undergoing, the hotel plays a pivotal role in shaping the city’s new identity while staying true to its roots.
We have a close relationship with the local authority and look forward to continuing our successful partnership through supporting the local community by creating jobs, both at the hotel level and within the supply chain and by working with local suppliers as much as possible.
We also aim to create a new business and leisure venue for locals and visitors by offering attractive conference facilities, bars and restaurants. It is essential for Radisson Hotel Group to partner with local authorities to breathe new life into towns and cities, whether through exciting new-build developments or the restoration of historic buildings. We intend to nurture our existing partnerships and to establish new ones in the near future.