Today’s news in brief – 30/4/24
The Rutland Hotel, along with its sister sites The Huxley and Kyloe, recently underwent a £1.2m refurbishment, introducing new interiors and enhanced features. Nestled in Edinburgh’s historic West End, with picturesque views of Edinburgh Castle and proximity to the Johnnie Walker experience, the relaunch of these venues signifies a pivotal moment in the area’s regeneration. Originally constructed in the early 1800s, the revitalised aesthetics pay homage to Scotland’s heritage, showcasing artwork inspired by iconic Scottish brands and design elements such as Mulberry wallpaper. Each of the nine renovated rooms at the hotel boasts a bath-butler package featuring products from Arran Aromatics.
Premier Inn owner Whitbread unveiled plans to streamline its operations by closing over 200 branded restaurants and redirecting focus towards expanding its hotel business. This strategic move involves converting 112 lower-returning branded restaurants into new hotel rooms while offloading an additional 126 restaurants. Whitbread aims to unlock 3,500 new room extensions, reaching at least 97,000 open rooms in the UK by FY29. Despite initial impacts on profitability and job losses, Whitbread anticipates long-term benefits, including increased profitability and operational efficiencies. The announcement coincided with the release of its FY24 results, showcasing a 36% increase in adjusted profit before tax and a 13% rise in revenues.
Recent data from RSM indicates promising signs of recovery in the UK hotel industry, with occupancy rates in March 2024 nearing pre-pandemic levels. Despite challenges such as flat average daily rates and a slight decline in Revenue per Available Room (RevPAR) for London hotels, Gross Operating Profits (GOP) remain stable. Analysts attribute the subdued performance to factors like increased costs and the recent hike in the national minimum wage. However, with rising consumer confidence and disposable incomes, coupled with ongoing improvements in the economic landscape, the sector anticipates further growth, particularly in domestic tourism.
The Swan Hotel and Spa, situated in Newby Bridge, Cumbria, is now available for sale. Featuring 81 unique bedrooms, a luxurious spa, function rooms, restaurants, and cottages, the property offers a comprehensive hospitality experience. With its prime location in the Lake District National Park and recent refurbishments, it presents an attractive investment opportunity. Savills Manchester, handling the sale, has already received considerable interest in this high-yielding asset.
