Lamington Group goes against the UK hotel industry grain with Room2 Lite

In recent years, the Lamington Group—who is responsible for developing and handling the Room2 “hometel” brand—has enjoyed the limelight in the UK hotel industry thanks to its continuous improvements and updates. With its fresh, new takes on modern accommodation, the family-owned real estate investment has caught the attention of investors and tourists alike. Besides the standard approach of hospitality and property management, Lamington has offered a more approachable and beneficial experience that has worked for investors and tenants. This crucial development is explanatory of the company’s meteoric rise in the UK hotel industry. The introduction of Room2 Following the success of Room2, the company has increased their efforts with a continuation to its project called “Room2 Lite”— a budget concept that’s expected to play a role as the company’s flagship product. At the moment, the group claims that it’s currently in negotiations with various parties and landlords who are interested in the proposed long-term hybrid lease structure. Regarding the defining factors, this leasing structure is comprised of a guaranteed fixed rent portion which is supplemented by a rent portion that’s pegged to overall performance. With its new setup in Southampton, the group has achieved a significant amount of success amid rising COVID-19 cases and lockdown restrictions thanks to its continued trading. In the past few months alone, the flagship offering has achieved and maintained monthly occupancy rates above 50 per cent while simultaneously accommodating key workers. Progress amid a healthcare crisis Despite the abrupt decline of the UK hospitality and tourism industry, the Lamington Group has achieved much success with its Room2 and Room2 Lite development thanks to an adaptive mindset and opportunity. According to the Lamington Group’s Managing Director Robert Godwin, “many hotel landlords who previously thought their leases offered them protection suddenly found themselves at the mercy of tenants who were either unwilling or unable to pay.” When it came to finding a solution to circumvent the current problem that well-financed brands were suffering from, Godwin said: “As a result, whilst our near term focus continues to be working with all our stakeholders to manage our way through the crisis, we have accelerated the launch of Room2 Lite, recognising that, now more than ever, the UK budget sector remains ripe for disruption, particularly at a time when landlords are looking elsewhere to avoid being stuck with unfavourable reduced terms.” The group’s managing director further expounded on the purpose of Room2 Lite as a solution that would help the UK budget hotel industry surge from its smallest conglomerates by tapping into the potential of creating memorable experiences. He said: “Our hometel model has held up extremely well in recent months and proved its resilience despite the worst of economic cases. We now see a real opportunity to replicate this success in the budget hotel market, setting a new standard for consumers, while offering landlords a hybrid leasing model which aligns their interests with ours, and is resilient enough to drive sustainable returns over the long term.” Conclusion Despite rising concerns in the UK hospitality industry, the Lamington Group has managed to circumvent current hurdles with the release of the Room2 Lite development. With a momentous amount of success and upper-level occupancy rate, it may be safe to say that the Lite iteration marks the beginning of a revolution in the accommodation field. To stay up to date on the latest UK hotel and hospitality industry news and updates, subscribe to our newsletter today and visit our website for more in-depth articles that are released daily!

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