When Germany’s 1912 Hotels announced its takeover of the Mercure Sheffield St Paul’s Hotel & Spa, marking the group’s first step into the UK market, the question on some minds was probably “why Sheffield?” But speaking with CEO Audun Lekve, it’s clear the deal is just one in a long line of planned acquisitions as it seeks to embark on an ambitious expansion over the next 15 months.
Why Sheffield?
“We were offered to have a look at this property by the owners at the time, and we really, really liked it,” says Lekve, CEO of 1912 Hotels. “It was a good opportunity for us to establish ourselves in the UK. We were never intrigued by going to London. We’re a growing small company. London can be very profitable, but it’s also a high-risk and expensive market.”
Instead, 1912 chose Sheffield, a city with a vibrant events and sporting calendar, a major university presence and a central location. The 169-room hotel overlooks the Peace Gardens and Winter Garden, and is already a cornerstone of Sheffield’s hotel and hospitality landscape. For 1912, its location at the heart of the city centre was the deciding factor.
“What we really look for is for the property to have a great location within its micro-market. Sheffield is a very good example of this” says Lekve. “
Cluster strategy
But the group’s ambitions extend far beyond one hotel. Lekve reveals that 1912 is currently negotiating “several interesting transactions” in the UK. He notes the company expects to increase its portfolio significantly over the next 12 to 15 months, building on its presence around the region, spotlighting an interest in the Midlands, Birmingham and Newcastle.
He adds: “We are also looking outside that cluster, targeting between five and ten hotels by the end of 2026. If everything goes according to plan, I think we’ll have 30 odd hotels in the UK in the next five years.”
Across Europe, the roadmap is even more aggressive: 75–90 hotels within the same timeframe, with particular focus on Central and Eastern Europe including Poland, Hungary, Romania, the Czech Republic, Croatia, Slovenia, Montenegro and Serbia.
“The Balkans are very interesting for us,” Lekve says.
No boring hotels
If 1912’s UK plan is about footprint, its operating philosophy is about energy and experience as Lekve notes a mantra: “no boring hotels.”
For Mercure Sheffield St Paul’s, this will mean a major repositioning of the F&B offering. “We are planning to do some major changes to the F&B outlets,” says Lekve. “The big shift for us is going to be that we are going to create an area which is attractive for people to come and eat and drink even if they do not intend to sleep in the hotel.”
The group is preparing to bring elements of its partnership with Spain’s La Sala Group to the UK, creating a social dining experience that blends live music with performance
“When you come and eat or drink, you will always find live music, perhaps even a magician walking around. It’s about creating some unexpected life in the property,” Lekve explains.
Renovations will also extend to rooms and public areas, with a programme which is already in motion. But the guest mix will remain broadly consistent with existing strengths which include Sheffield being a big university city, sporting as well as the hotel’s conferences and events offering. “We don't expect a major shift in the segmentation from what we are experiencing and what the hotel has had in the past. We just expect that we are going to deliver a better product to those segments going forward,” Lekve says.
1912 is betting on combining creativity with rigour. “What we will bring to our hotels in the UK is a certain level of structure and efficiency, which Germany is famous for,” says Lekve. The group has developed internal IT solutions that give real-time visibility on operations, as well as customer-journey tools to streamline the guest experience digitally.
Looking ahead
For a group that currently operates just one UK property, 1912’s ambitions are bold. But Lekve is confident that building clusters in strong regional locations and focusing on lively F&B concepts will create the right mix of scale and differentiation.
“We don’t want boring hotels,” he repeats. “The key is delivery. What do you deliver to your guests? For us, it’s about properties where we see we can introduce some exciting F&B concepts.”
With the company’s grand plans and a pipeline of deals under negotiation, I guess the message is: “Watch this space!”