Today’s news in brief – 29/10/24
Whitbread recently completed a sale and leaseback of two Premier Inn hotels in Westminster and Oxford. This deal, a 30-year lease with five-year Consumer Price Index (CPI) reviews, netted £56m at an initial yield of 4.25%. As Whitbread pursues a goal of 125,000 rooms across the UK and Ireland, it plans to increase its current UK room offerings to 98,000 by 2030. The sale-leaseback approach allows Whitbread to recycle capital into expansion, leveraging its £4.9-5.8bn property portfolio to capitalise on shifts in the hospitality market.
Bovey Castle in Devon invested £40,000 in a new, heated four-bay driving range, enhancing its championship golf course. This upgrade follows a rise in golf memberships under PGA golf manager Rob Selley, and it aims to make golf accessible year-round for all skill levels. The all-weather facility supports Bovey’s broader initiatives, including junior programs and beginner sessions. The hotel also plans further renovations, such as improvements to its golf shop and members’ area, to foster a full club experience, supported by dining options in its acclaimed restaurants.
In September, UK hotel performance showed signs of pressure from record rainfall and decreased consumer confidence. Hotel occupancy slightly increased year-on-year but was offset by declining average daily rates, down to £153.21 in the UK and £218.11 in London. Gross operating profits remained stable but were down 0.5% compared to last year. Chris Tate of RSM UK highlighted concerns over cost management as room rates may have peaked, cautioning that potential tax hikes could impact staffing costs, which might influence sector recovery.
Hotel Co 51 promoted Lesya Batsuk to group finance manager, entrusting her with leading the finance team across its portfolio of 42 Marriott-branded hotels in Europe. Batsuk’s extensive experience, including her strategic role in centralising Hotel Co 51’s finance operations, has supported the company’s expansion across eight countries. The promotion reflects Hotel Co 51’s commitment to internal talent development, as CEO Wayne Androliakos praised Batsuk’s expertise in managing complex European financial regulations, crucial to the company’s sustainable growth.
