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Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
Stephen Frood
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Stephen Frood

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  • 1. Ambassadors Bloomsbury London : 28 April 2010 Stephen Frood Davis Langdon COMPARING HIGH END HOTELS IN LONDON TO THE REST OF THE WORLD
  • 2. Content <ul><li>Introduction </li></ul><ul><li>Defining high end hotels </li></ul><ul><li>What are the top hotels in the world? </li></ul><ul><li>Facts and figures on the top hotels worldwide </li></ul><ul><li>Market feedback from key Davis Langdon locations </li></ul><ul><li>London – What will the future bring? </li></ul>
  • 3. DEFINING HIGH END HOTELS
  • 4. How do we define a top end hotel? <ul><li>What makes a top hotel? </li></ul><ul><li>Range of large guest rooms </li></ul><ul><li>Substantial front of house facilities (restaurants, bars, banquet, conference, retail etc) </li></ul><ul><li>Range of back of house facilities to support hotel operation </li></ul><ul><li>Exemplary service and quality standards </li></ul><ul><li>Location, reputation and destination status </li></ul><ul><li>Cost </li></ul>
  • 5. WHAT ARE THE TOP HOTELS IN THE WORLD
  • 6. What are the top hotels in the world? <ul><li>Beijing </li></ul><ul><li>Mandarin Oriental </li></ul><ul><li>St Regis </li></ul><ul><li>Park Hyatt </li></ul><ul><li>Shangri-La </li></ul><ul><li>Ritz Carlton </li></ul><ul><li>Singapore </li></ul><ul><li>St Regis </li></ul><ul><li>Raffles </li></ul><ul><li>Ritz Carlton </li></ul><ul><li>Capella </li></ul><ul><li>Fullerton </li></ul><ul><li>Hong Kong </li></ul><ul><li>Four Seasons </li></ul><ul><li>Mandarin Oriental </li></ul><ul><li>W Hong Kong </li></ul><ul><li>Grand Hyatt </li></ul><ul><li>Island Shangri-La </li></ul><ul><li>Barcelona </li></ul><ul><li>W Barcelona </li></ul><ul><li>Mandarin Oriental </li></ul><ul><li>Gran Hotel La Florida </li></ul><ul><li>Hotel Arts </li></ul><ul><li>Hotel Casa Fuster </li></ul>
  • 7. What are the top hotels in the world? <ul><li>Sydney </li></ul><ul><li>Park Hyatt </li></ul><ul><li>Four Seasons </li></ul><ul><li>The InterContinental </li></ul><ul><li>The Observatory </li></ul><ul><li>Westin International </li></ul><ul><li>New York </li></ul><ul><li>Four Seasons </li></ul><ul><li>Peninsula </li></ul><ul><li>Ritz Carlton </li></ul><ul><li>St Regis </li></ul><ul><li>Hotel Plaza Athenne </li></ul><ul><li>Paris </li></ul><ul><li>Four Seasons George V </li></ul><ul><li>The Ritz </li></ul><ul><li>Hotel Le Crillion </li></ul><ul><li>Hotel Le Bristol </li></ul><ul><li>Park Hyatt </li></ul><ul><li>Dublin </li></ul><ul><li>The Westbury </li></ul><ul><li>The Shelbourne </li></ul><ul><li>The Fitzwilliam </li></ul><ul><li>Ritz Carlton </li></ul><ul><li>The Dylan Hotel </li></ul>
  • 8. What are the top hotels in the world? <ul><li>Cape Town </li></ul><ul><li>Mount Nelson </li></ul><ul><li>The Table Bay Hotel </li></ul><ul><li>The Cape Grace Hotel </li></ul><ul><li>Crystal Towers </li></ul><ul><li>Westin Grand </li></ul><ul><li>London </li></ul><ul><li>The Ritz </li></ul><ul><li>The Savoy </li></ul><ul><li>Claridge’s </li></ul><ul><li>The Connaught </li></ul><ul><li>Dorchester </li></ul>
  • 9. What can we take from this? <ul><li>London, Paris, Dublin and Barcelona have more privately owned top end hotels </li></ul><ul><li>Key emerging world wide locations dominated by the leading ‘luxury brands’ (Four Seasons, St Regis, Ritz Carlton, Shangri-La, Mandarin Oriental) </li></ul><ul><li>Major European Cities have mature markets and older more established building stock </li></ul><ul><li>Major European cities maybe have older more traditional hotel stock – the Ritz in London, Claridges etc </li></ul><ul><li>Selecting the top 5 is very subjective ! </li></ul><ul><li>Lets hold onto these thoughts and return to them later….. </li></ul>
  • 10. FACTS AND FIGURES ON THE TOP HOTELS WORLDWIDE
  • 11. Operational performance of top end hotels <ul><li>Occupancy global ranking index 2008 </li></ul>Source: Deloitte / STR Global
  • 12. Operational performance of top end hotels <ul><li>Average room rate global ranking index 2008 </li></ul>Source: Deloitte / STR Global
  • 13. Operational performance of top end hotels <ul><li>RevPAR global ranking index 2008 </li></ul>Source: Deloitte / STR Global
  • 14. Operational performance of top end hotels <ul><li>What Trends can we take from this performance data? </li></ul><ul><li>5 cities or locations feature in all three rankings – Paris, New York, Dubai, Abu Dhabi and London </li></ul><ul><li>These destinations command top room rate, high occupancy and therefore leading RevPAR figures </li></ul><ul><li>Despite the negative impact of the world wide recession these are still leading world wide destinations – especially for the top end market </li></ul>
  • 15. Design Economics of top end hotels
  • 16. Design Economics of top end hotels
  • 17. <ul><li>What Trends can we take from this data? </li></ul><ul><li>Far East and Asia Top End Hotels are bigger – bigger bedrooms and bigger public areas </li></ul><ul><li>Proportion of public areas to bedrooms is higher </li></ul><ul><li>Bigger emphasis on food and beverage facilities in some of the emerging locations ? </li></ul><ul><li>Design size and standards reflects land and property constraints in historic and mature locations like London </li></ul><ul><li>Smaller overall size and smaller guest rooms reflects higher build costs in London (and the USA and Europe) </li></ul><ul><li>Locations like London can still earn top rates and achieve high RevPAR from smaller hotels </li></ul>Design Economics
  • 18. MARKET FEEDBACK FROM KEY DAVIS LANGDON LOCATIONS
  • 19. <ul><li>Dublin </li></ul><ul><li>Top end hotels dominated by privately owned stock </li></ul><ul><li>2003 – 2008 saw huge increase in new hotel development </li></ul><ul><li>Currently a huge over supply </li></ul><ul><li>12% drop in visitors in 2009 </li></ul><ul><li>Occupancy levels down to circa 55% (last seen in the early 1980’s) </li></ul><ul><li>Very low levels of development activity or intent </li></ul>Some Feedback from around the World
  • 20. Some Feedback from around the World <ul><li>Beijing </li></ul><ul><li>Top end market is still very ‘hot’ </li></ul><ul><li>Four Seasons have two new and current hotels under construction </li></ul><ul><li>Typical size is 50,000m2 with 400 – 500 bedrooms </li></ul><ul><li>Most have 4 – 5 restaurant options </li></ul><ul><li>Top end hotels all tend to be new build </li></ul><ul><li>Hotel fabric and Operators are both international 5* grading but service levels yet to reach 5* standard </li></ul>
  • 21. <ul><li>Hong Kong </li></ul><ul><li>All top end hotels in the city centre or CBD </li></ul><ul><li>Shortage of land in the CBD </li></ul><ul><li>Ritz Carlton to open a major hotel in 2010 </li></ul><ul><li>Food and beverage a major source of income for top hotels </li></ul><ul><li>Top hotels tend to be surrounded by high end shopping/retail offer </li></ul><ul><li>A lot of budget hotels now under construction – tend to be outside centre and aimed at mainland Chinese visitors </li></ul>Some Feedback from around the World
  • 22. <ul><li>Singapore </li></ul><ul><li>Top end hotels all 200 – 500 rooms </li></ul><ul><li>Historically a mixture of new build and conversion (Raffles was a refurbishment and Capella and the Fullerton were conversions) </li></ul><ul><li>Two Integrated Resorts nearing completion – will release 4,000 top end rooms into the market </li></ul><ul><li>6 – 7 further hotels under construction in 2010 </li></ul><ul><li>2009 was a tough year in Singapore – 20% decline in average room rate for 5* hotels </li></ul>Some Feedback from around the World
  • 23. <ul><li>Sydney </li></ul><ul><li>Current occupancy levels are 80% plus (five major cities in the 2008 occupancy ratings) </li></ul><ul><li>Probably one of the few world wide locations not to have felt the chill winds of recession </li></ul><ul><li>Still demand for top end hotels – but short on supply (economics are difficult to make work) </li></ul><ul><li>Biggest scheme underway is the new 5* Star City Casino Development </li></ul>Some Feedback from around the World
  • 24. <ul><li>Barcelona </li></ul><ul><li>Top hotels in centre are constrained by density of historic core </li></ul><ul><li>21 of Barcelona’s 321 hotels are 5* standard </li></ul><ul><li>36% of hotel stock is privately owned </li></ul><ul><li>Between 2006 and 2009 - 36 new hotels were completed, 6 were top end 5* </li></ul><ul><li>Between 2010 and 2012 - over 50 more are planned but a serious slow down due to the economic position </li></ul>Some Feedback from around the World
  • 25. Some Feedback from around the World <ul><li>London </li></ul><ul><li>Mature market, historic context, high property and land values </li></ul><ul><li>Top performing location </li></ul><ul><li>Great tourist draw </li></ul><ul><li>Backdrop of London 2012 looming </li></ul><ul><li>Some of the greatest top end hotels in the world but….. </li></ul><ul><li>A lot of over rated 5* hotel stock </li></ul><ul><li>A lot of top hotels in need of refurbishment and upgrade </li></ul>
  • 26. LONDON – WHAT WILL THE FUTURE BRING?
  • 27. London – What will the future bring? <ul><li>2010 sees some great additions to London’s top end offer – Savoy re-opening, W Hotel (Leicester Square), Four Seasons on Park Lane and the Corinthia </li></ul><ul><li>Occupancy growth is forecast in 2010 – 2 to 2.5% </li></ul><ul><li>Room Rate growth – 3.5% </li></ul><ul><li>6,000 new rooms under construction by 2013 </li></ul>London - New Hotel Room Supply by Category 2010-2013f Source: TRI Hospitality Consulting
  • 28. London – What will the future bring? <ul><li>35% of this supply will be 5* / Luxury hotels </li></ul><ul><li>Key focus on the City and the West End (in particular Westminster) </li></ul><ul><li>5* and Luxury market make for more attractive development propositions </li></ul><ul><li>Big overseas luxury brands seeking entry into London (ie Shangri-La at the Shard) </li></ul><ul><li>The future is looking good for top end hotels – both for the construction and property sector and for tourists and business users but….. </li></ul><ul><li>Some London hotels have much to learn from their counterparts around the world and need to ‘raise their game’ in terms of quality and service standards </li></ul>
  • 29. QUESTIONS

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