Ambassadors Bloomsbury London : 28 April 2010 Stephen Frood Davis Langdon COMPARING HIGH END HOTELS IN LONDON TO THE REST ...
Content <ul><li>Introduction </li></ul><ul><li>Defining high end hotels </li></ul><ul><li>What are the top hotels in the w...
DEFINING HIGH END HOTELS
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><...
WHAT ARE THE TOP HOTELS IN THE WORLD
What are the top hotels in the world? <ul><li>Beijing </li></ul><ul><li>Mandarin Oriental </li></ul><ul><li>St Regis </li>...
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...
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 Hot...
What can we take from this? <ul><li>London, Paris, Dublin and Barcelona have more privately owned top end hotels </li></ul...
FACTS AND FIGURES ON THE TOP HOTELS WORLDWIDE
Operational performance of top end hotels <ul><li>Occupancy global ranking index 2008 </li></ul>Source: Deloitte / STR Glo...
Operational performance of top end hotels <ul><li>Average room rate global ranking index 2008 </li></ul>Source: Deloitte /...
Operational performance of top end hotels <ul><li>RevPAR global ranking index 2008 </li></ul>Source: Deloitte / STR Global
Operational performance of top end hotels <ul><li>What Trends can we take from this performance data? </li></ul><ul><li>5 ...
Design Economics of top end hotels
Design Economics of top end hotels
<ul><li>What Trends can we take from this data? </li></ul><ul><li>Far East and Asia Top End Hotels are bigger – bigger bed...
MARKET FEEDBACK FROM KEY DAVIS LANGDON LOCATIONS
<ul><li>Dublin </li></ul><ul><li>Top end hotels dominated by privately owned stock </li></ul><ul><li>2003 – 2008 saw huge ...
Some Feedback from around the World <ul><li>Beijing </li></ul><ul><li>Top end market is still very ‘hot’ </li></ul><ul><li...
<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...
<ul><li>Singapore </li></ul><ul><li>Top end hotels all 200 –  500 rooms </li></ul><ul><li>Historically a mixture of new bu...
<ul><li>Sydney </li></ul><ul><li>Current occupancy levels are 80% plus (five major cities in the 2008 occupancy ratings) <...
<ul><li>Barcelona </li></ul><ul><li>Top hotels in centre are constrained by density of historic core </li></ul><ul><li>21 ...
Some Feedback from around the World <ul><li>London </li></ul><ul><li>Mature market, historic context,  high property and l...
LONDON – WHAT WILL THE FUTURE BRING?
London – What will the future bring? <ul><li>2010 sees some great additions to London’s top end offer – Savoy re-opening, ...
London – What will the future bring? <ul><li>35% of this supply will be 5* / Luxury hotels </li></ul><ul><li>Key focus on ...
QUESTIONS
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Comparing high end hotels in London to worldwide

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Stephen Frood

  1. 1. Ambassadors Bloomsbury London : 28 April 2010 Stephen Frood Davis Langdon COMPARING HIGH END HOTELS IN LONDON TO THE REST OF THE WORLD
  2. 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. 3. DEFINING HIGH END HOTELS
  4. 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. 5. WHAT ARE THE TOP HOTELS IN THE WORLD
  6. 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. 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. 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. 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. 10. FACTS AND FIGURES ON THE TOP HOTELS WORLDWIDE
  11. 11. Operational performance of top end hotels <ul><li>Occupancy global ranking index 2008 </li></ul>Source: Deloitte / STR Global
  12. 12. Operational performance of top end hotels <ul><li>Average room rate global ranking index 2008 </li></ul>Source: Deloitte / STR Global
  13. 13. Operational performance of top end hotels <ul><li>RevPAR global ranking index 2008 </li></ul>Source: Deloitte / STR Global
  14. 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. 15. Design Economics of top end hotels
  16. 16. Design Economics of top end hotels
  17. 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. 18. MARKET FEEDBACK FROM KEY DAVIS LANGDON LOCATIONS
  19. 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. 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. 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. 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. 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. 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. 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. 26. LONDON – WHAT WILL THE FUTURE BRING?
  27. 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. 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. 29. QUESTIONS

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