Today’s news in brief – 26/7/24
The UK hotel market has shown signs of normalisation with £3.6bn worth of transactions in the first half of 2024, a significant increase from £1bn in H1 2023. According to Christie and Co’s Hotels 2024 Mid-Year Market Insight, this surge has helped the UK reclaim its status as the leading European hotel transactional market. Christie and Co completed over 40 hotel transactions in the UK during H1 2024, doubling the number from the same period in 2023. The firm expects this positive trend to continue into the second half of 2024 and 2025, driven by refinancing and the withdrawal of government contracts. The market is anticipated to polarise towards economy and luxury segments, with performance stabilising and profit margins normalising, especially in leisure destinations and London. Yields are expected to remain stable, with a focus on conversion brands targeting independent hotels.
Wyndham Hotels reported a 2% increase in RevPAR on a constant currency basis for Q2 2024. The company’s system-wide rooms grew by 4% year-over-year, adding over 18,000 rooms globally. Wyndham’s adjusted EBITDA rose by 13% compared to Q2 2023, reaching $178m (£138.3m). The company awarded 180 development contracts globally, a 33% year-over-year increase, and grew its development pipeline by 7% to a record 245,000 rooms. Additionally, Wyndham repriced its Term Loan B Facility, reducing its interest rate by 60 basis points and increasing the facility by $400m (£310.8m). President and CEO Geoff Ballotti highlighted the business model’s resilience and cash generation capabilities, noting significant growth in hotel contracts and development pipeline.
Warner Hotels has appointed David Murdin as its new chief marketing officer to enhance brand and commercial success amid the group’s ambitious growth plans. Murdin brings 30 years of experience in brand and marketing, having held leadership roles at British Airways, Sky Sports, Whitbread, Costa Coffee, and Wagamama. As CMO, Murdin will focus on increasing brand awareness, enhancing market presence, and attracting new guests. His responsibilities include brand development, marketing, PR, and communications. Warner Hotels CEO Paul Pomroy emphasised the importance of Murdin’s role in repositioning the brand and reaching new audiences. Murdin expressed excitement about joining Warner Hotels during a pivotal time and highlighted the upcoming launch of The Runnymede on Thames hotel in Windsor as a key focus.
Valor Hospitality is celebrating its 10-year anniversary in the UK, marking continuous growth since its inception. Co-founded by Euan McGlashan and Steve Cesinger, Valor started with an underperforming portfolio of IHG-branded hotels and expanded to 40 hotels over the decade. Under the leadership of Brian McCarthy, the team transformed and grew the portfolio, managing multi-million-pound renovations and rebranding projects across IHG, Hilton, and Marriott properties. Valor’s portfolio includes new luxury golf resorts and the upcoming net-zero carbon hotel, voco Zeal Exeter Science Park. The team expanded from 1,259 members in 2014 to 3,218 in 2024. Valor has also launched Savor, a specialised food and beverage arm. Globally, Valor operates in 65 cities across 16 countries. Co-founder and CEO McGlashan praised the team’s achievements and looked forward to future growth, emphasising the importance of team engagement and excellence.
