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STRATEGIC YEARBOOK

INTELLIGENCE FOR HOTELIERS HOTEL INDUSTRY MAGAZINE STRATEGIC YEARBOOK

LEADING HOTELIERS SHARE THEIR 2015 STRATEGY: INTELLIGENCE FROM THE ANNALISTS AT HOTEL INDUSTRY MAGAZINE

STRATEGIC YEARBOOK

2 HOTEL INDUSTRY MAGAZINE | STRATEGIC YEARBOOK

STRATEGIC YEARBOOK 2015

WHO HAS CONTRIBUTED TO THE 2015 HOTEL STRATEGIC YEARBOOK?

The 2015 Strategic Yearbook brings together insight and strategy from the UK’s leading hoteliers. Discover who has contributed to this issue below: Richard Moore Area VP, UK & Ireland, Rezidor Hotel Group Federico J. González Tejera CEO, NH Hotel Group David Myers CEO, Sleeperz Hotels Peter Cashman CEO, Focus Hotels Management Conor O’Donovan CEO, Sefton Park Hotel Paul Mansi COO, Edwardian Group London Linda Plant Group Director of Sales, Edwardian Group London Dearbhla Mac Fadden Director of Marketing, Edwardian Group London Danny Pecorelli MD, Exclusive Hotels and Venues Stewart Campbell MD, Redefine BDL Hotels Mark Chambers MD, Eden Hotel Collection Shaun Hinds MD International, BridgeStreet Global Hospitality Stephen Gow Cluster GM, Thistle Hotels Scotland David Vaughton Director of Venues, EEF Venues Bronagh Bell Director, Beardmore Hotel and Conference Centre Olivia Byrne Director, Eccleston Square Hotel Peter Sangster GM, Mercure Ardoe House Hotel and Spa Gary Rice GM, Beardmore Hotel and Conference Centre Mike Dewey GM at Hard Days Night Hotel Roberto Pajares GM, Ampersand Hotel Laurence O’Neill Associate Solicitor, Morrisons Solicitors

STRATEGIC YEARBOOK

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CONTENTS

INTRODUCTION

A STRATEGY FOR 2015 p5

The 2015 Strategic Yearbook from Hotel Industry Magazine pulls together strategic thought leadership from across the industry to create the ultimate strategic planning tool for UK hoteliers.

CHAPTER ONE

CHAPTER TWO

CHAPTER THREE

CHAPTER FOUR

CHAPTER FIVE

CHANGING LANDSCAPE p5 A review of the trends and challenges expected in 2015

SALES, MARKETING AND DIGITAL STRATEGY p17 How will sales and marketing activities evolve in 2015? How are leaders adapting their digital marketing strategy?

2015 TECH SPEND p27 Where will leading hoteliers be focusing their tech spend?

LEGAL BRIEFING: HOLIDAY PAY IN 2015 p33 A legal briefing on changes to holiday pay in 2015

TALENT MANAGEMENT STRATEGIES IN 2015 p39 How serious will the expected talent squeeze be in 2015? What talent management strategies are hoteliers deploying?


STRATEGIC YEARBOOK 2015

2015 is a landmark year in the history of the UK hotel industry. This year, we will see the UK hotel industry fully emerge from recession. But the landscape has changed and hoteliers are now operating in a very different trading environment. 2015 sits at the crossroads of economic recovery, technological convergence and rapid changes in consumer behaviours ... In short, strategy has never been so important! With this in mind, Hotel Industry Magazine has leveraged its influence to pull together the views of the UK’s leading hoteliers. What are they focusing on? What challenges do they see in 2015? What strategies are they deploying? We have identified the big issues affecting the UK hotel industry, and dug deep to present peer-analysis and share real-life strategies for success. The result is the ultimate strategic planning tool for hoteliers and those supplying the UK hotel sector.

The 2015 Strategic Yearbook is built on one of our core beliefs: Hoteliers learn best from hoteliers ... not journalists! In the pages that follow you will find the business critical views and ideas that will help you form your own strategies with your teams. Hoteliers that position themselves strategically in 2015, will set the foundations for success in the years that follow. Things are changing fast: why not be proactive, not reactive. Lee Jamieson Editor, Hotel Industry

WELCOME “A STRATEGY FOR 2015”

Hotel Industry Magazine 2015 Strategic Yearbook First published internationally in 2015 by Jamieson Media Digital Web: www.hotel-industry.co.uk Twitter: @hotel_industry Facebook: www.facebook.com/hotel.industry Jamieson Media Hotel Industry Magazine and hotel-industry.co.uk are published by Jamieson Media, a UK Registered Partnership Website: www.jamiesonmedia.co.uk Email: [email protected] The opinions and views contained in this publication are not necessarily those of the publisher. The publishers regret that they cannot accept liability for error or omissions in this publication, however caused. All information in this publication is provided for general use. The publishers advise all readers to seek specialist advice before acting on any information contained in this publication. Readers are also advised to directly contact advertisers and companies mentioned in this publication in order to qualify the claims made, adherence to regulation and financial security. No material in this publication may be reproduced in any form without the prior written permission of the publisher. © Copyright 2015, Jamieson Media

HOTEL INDUSTRY MAGAZINE

STRATEGIC YEARBOOK


CHANGING LANDSCAPE

2015 is a critical time for UK hoteliers. The industry is emerging from recession, but economic uncertainty persists. Hoteliers are trading in a time where the OTAs and discount websites continue their stranglehold on pricing, but they bring other benefits. Even the source markets for the guests of the future are in flux! The market is evolving, the guests are evolving and technology is evolving ... but are you? We hit the ground running in this chapter, in which our industry leaders discuss the changing business landscape that informs their business strategy for 2015.

ECONOMIC PRESSURES Stewart Campbell, MD, Redefine BDL Hotels While the buoyancy within the sector is encouraging, and a good barometer against which to measure the economy generally, we must remain cautious as the sector is still emerging from the economic downturn. The signs are that corporate and leisure customers are more willing to spend on good quality as opposed to always seeking out the best deals; however, competitiveness is key to attracting people. Peter Cashman, CEO, Focus Hotels Management We’re also anticipating continued churn of provincial hotel estates as funds and banks dispose, and new funds and investors continue to build new portfolios. 2015 will also see more capital investments improving the quality of primarily provincial hotel stock.

CHAPTER ONE

CHANGING LANDSCAPE A DETAILED REVIEW OF THE TRENDS AND CHALLENGES EXPECTED IN 2015


STRATEGIC YEARBOOK CHANGING LANDSCAPE

OIL IN SCOTLAND

One of the main challenges that will face hotels in Aberdeen specifically will be the price of Brent crude oil. The price of a barrel is currently falling and that means that operators based in the North Sea – for which Aberdeen operates as the hub – will be scaling back operations. To try and harvest what remains of the oil in the area does not make economic sense when the return is so low, so we are expecting to see the energy sector slow down dramatically in 2015 and beyond. Oil companies, and other service companies who have been able to benefit from the buoyancy of the oil and gas industry here in Aberdeen, will have to review their budgets and spending. It could be that there will be less demand for hotel rooms and associated food and beverage trade

midweek for business travellers, and with predictions of as many as 30,000 jobs being lost over the next few years, I also anticipate less demand for meetings and events space. Office space in Aberdeen is at a premium: the city is literally bursting at the seams and many companies have used up all available space in their buildings to accommodate growing workforces. Venues in the city have been able to capitalise on that because so many meetings, training courses and company events are having to be held externally. The challenge for us is to grow the consumer market to balance the losses which we predict. We last went through a downturn in the oil and gas

industry in 2009, and since that time we have seen an additional 1,200 rooms pop up in the city. These could be challenging times with more venues competing for a slice of a much smaller pie. Hoteliers in Aberdeen also need to help change the perception of leisure tourism in city and to shout loudly that there is more to Aberdeen than oil. The demand from business travellers means room rates are significantly higher midweek than at the weekend, so we need to capitalise on this to promote Aberdeen as a destination for the leisure market. Stephen Gow, Cluster GM, Thistle Hotels Scotland

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CHANGING LANDSCAPE

So there are still many challenges out there that we must overcome. For example, wage improvements and shortage of staff will present a challenge in terms of finding the right, motivated employees, and will also create payroll pressures. Stagnant growth in the Euro Zone could also potentially lead to a reduction in continental visitors. Olivia Byrne, Director, Eccleston Square Hotel Yes, everyone will continue to keep a close eye on Europe; its stability will affect consumer confidence as will the UK’s economic forecast. And let’s not forget that 2015 is a General Election year! I hope that we can expect London to once again enjoy international media attention – which can only be great for tourism in the Capital. Mark Chambers, MD, Eden Hotel Collection I think that the General Election will make the first quarter tough. People will be tightening their belts as they won’t know what to expect. Various cuts, the threat of a triple dip recession and the fragile economies of some of Europe’s super powers will all impact on how people spend and public confidence. Olivia Byrne, Director, Eccleston Square Hotel I think that consumer spending confidence will increase. If so, new businesses and hotels will spring up. So, in addition to an increase in competition, there’s also the very real issue of online travel agents (OTA) eating up the market share and reducing direct-sell turnover.

PRICING CONCERNS David Myers, CEO, Sleeperz Hotels I predict that OTAs (Online Travel Agents) will continue to extend their influence over the booking landscape and operators will need to become increasingly innovative in digital marketing to win those prized direct bookings via hotel websites. The OTAs generate business but the commission structure drives down margin considerably and increasing direct bookings remains the single most important objective for any hotel.



Bronagh Bell, Director, Beardmore Hotel and Conference Centre The OTAs provide an amazing “shop window” market reach that independent hotels could only dream of ten years ago. Although they provide an essential marketing tool for Hotels, commission levels are such that margins are squeezed. Careful revenue management will be a key factor in continuing to ensure optimum market visibility and a reasonable return. Olivia Byrne, Director, Eccleston Square Hotel Price discounting is definitely an issue for 2015. There is more confidence in consumer spending, but clients are still attracted by big savings through the big-brand discount sites like Groupon, and businesses are compelled to discount heavily in order to compete. Mark Chambers, MD, Eden Hotel Collection Online flash sales, demonstrated particularly by the hype around Black Friday, will continue to trend up and dominate the way people spend. In the hospitality industry it is imperative that hoteliers, especially in the boutique industry, have more control of how often this sales tool is used. We need to tip the balance, take control and start to use this channel more strategically or we run the risk of devaluing our product.

BUDGET BOUTIQUE

In the budget sector, innovation and investment is creating an exciting new landscape and the budget boutique segment is going to pressurise traditional mid-market four star hotels that were previously favoured by corporate accounts, business travel agents and event bookers. Fresh new supply, in particular the high quality budget sector, will continue to pressurise the mid-market brands. The net effect of these new entrants may result in oversupply in regional cities

including Newcastle and Liverpool, whereas capital cities like London and Edinburgh are still struggling with undersupply and prime sites are becoming difficult to secure due to the demand from both the bigger brands and new smaller brands like ours. The other effect of the higher demand in major cities is the price inflation in construction, helped further by a more vibrant economic environment. David Myers CEO, Sleeperz Hotels

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CHANGING LANDSCAPE

EVOLVING MARKET DEMAND Stewart Campbell, MD, Redefine BDL Hotels Primarily, we see the continuing growth in RevPAR for the UK’s regions, outside of London, of around six per cent year-on-year – although London’s growth may be a little slower, at around two per cent. Growth far outstripped our predictions in 2014, particularly in Glasgow which benefited from the Commonwealth Games, Ryder Cup and the opening of the SSE Hydro, and we expect this to continue as a result of the legacy left by these events. David Vaughton, Director of Venues, EEF Venues Continuing market demand will lead to higher rate achievement. Budget brands will continue to expand and dominate in the mid-market, while top end hotels will benefit from increased American visitors. Value for money expectations will continue to erode purely price-based decisions so UK hoteliers will have to improve their offer and look at news ways to capture business and promote brand loyalty.

THE NEED FOR INVESTMENT

Hopefully, the industry will experience an upswing in RevPAR and ARR in 2015, enabling operators to continue to invest in their offering.

Personally, I think that in-room technology is also going to be a key driver in helping guests choose their accommodation going forward. We have all seen how important it is to offer reliable free Wi-Fi, however we now need to start offering something more and I think that smart TVs with web connectivity and extensive on demand options will become more of the norm. In order to achieve an upswing we need to continue to innovate and this obviously costs money.

Many operators have had a lean few years; resources will be tight and some may struggle to raise the money for capital investment. However, it is important that operators hold their nerve and take a long-term view. By carefully controlling costs in other parts of the business and planning investment in stages, operators can make on-going improvements to their offering and reap the benefits in what is again becoming a growing market. Conor O’Donovan CEO, Sefton Park Hotel



GENERATION CHANGE

A key challenge for UK hoteliers is appealing to the younger, so-called millennial generation. Their behaviour is driving a change in hotels. In meetings and events, for example, while demand for traditional meeting space remains high, we are now seeing an increase in requests for alternative room styles and set-ups, and a growing use of our lobby and lounge areas for more casual meeting settings. It’s no longer a case of one size fits all and we’ve adapted our offering to fit with the

varying needs of our guests and meeting delegates. When looking at millennials in particular, the expectations tend to be focused on technology and ensuring that our hotels are suitably equipped to support the technological requirements of their conference or meeting. This is also changing the way we travel. For today’s travellers, hotel public areas need to be more flexible and functional. We need to be creating social spaces that work on a number

of levels, be it people getting together for a meeting, pre-dinner drinks, a social gathering or someone just dropping by to check their emails on the move. Elements such as Free Wi-Fi are now expected, and lobbies and lounges now need to be more user friendly with items like lounge and communal seating, grazing menus, good coffee, and lots of plug sockets! Richard Moore Area VP, UK & Ireland, Rezidor Hotel Group

STRATEGIC YEARBOOK


CHANGING LANDSCAPE

Therefore, I think we will see more pressure on cost management and procurement to drive margin and capitalise on a more competitive supplier market. Shaun Hinds, MD International Operations, BridgeStreet Global Hospitality I think that the major hospitality brands are facing expansion issues, forced to extend their brand segment product lines to compensate for market brand density issues. This might be why leisure guests are experimenting with the sharing hospitality set (Airbnb, onefinestay); at BridgeStreet, we do think the sharing economy will have a significant effect on occupancy in hospitality. They are most certainly affecting the leisure traveller and it would be interesting to assess the occupancy erosion of the weekend hotel business versus the weekday corporate traveller.

DOMESTIC VERSES INTERNATIONAL DEMAND Stephen Gow, Cluster GM, Thistle Hotels Scotland As a whole the UK economy is recovering, and with that people may have more money to spend on trips. While staycations have been the trend in times of austerity, I believe we could now see a move back towards people taking holidays abroad. As an industry, we need to look at ways in which we can incentivise people to take breaks in the UK to ensure that we continue to benefit from revenue streams generated by leisure stays. Olivia Byrne, Director, Eccleston Square Hotel But there is no slowing down of Visit Britain’s ‘Staycationing’ campaigns – London and the UK as a whole, is as enticing and exciting as ever. The world’s press will once again be watching the UK as it anticipates yet another VIP royal birth and following the most wonderfully warm summer in the UK - I think UK hoteliers in 2015 will continue to see a growth in domestic bookings. And the UK continues to enjoy international success with world



famous music bands and high end London fashion labels (like McCartney and Victoria Beckham) which are leading the runways in Europe and New York, so I’m confident in saying that on an international front, London and the UK is still very much setting the standard and is still a fabulous place to be and to be seen. Stewart Campbell, MD, Redefine BDL Hotels Perhaps the biggest consumer trend likely to hit in 2015 is the emerging strength of the global travel market. In London and Edinburgh in particular, demand has remained consistent despite more properties being built and launched. These new hotels are not displacing existing ones; rather meeting the increasing global travel demand. With this in mind, we need to be sure we respond to the various trends in overseas travel that our research has brought to our attention. For instance, destinations like London and Edinburgh, as well as Glasgow, Belfast, Manchester and Liverpool will attract independent visitors, while groups tend to branch out more and tour, moving towards very scenic areas like the Cotswolds, Lake District, the North East, Wales and the Highlands. Another challenge is meeting the expectations of global travellers – whether it’s understanding and reacting to external factors such as visa applications, or ensuring our internal processes are up to scratch

RECOVERING CONFERENCE MARKET

The conference market is coming back stronger than initially predicted. We would have originally estimated it taking another two to three years for it to pick up; however, we’re definitely seeing strong improvement now. Lead-in time is increasing to around 9-12 months and larger conferences are now being secured. Stewart Campbell, MD, Redefine BDL Hotels

STRATEGIC YEARBOOK


CHANGING LANDSCAPE

in areas such as overcoming pre-arrival language barriers and providing adequate payment methods.

KEEPING PACE WITH TECHNOLOGY David Myers, CEO, Sleeperz Hotels Keeping pace with technological advancements is one of the biggest challenges facing the UK hotel industry in 2015. Tech-savvy consumers demand so much now and free, fast Wi-Fi has become the norm not a luxury. Guests expect to be able to get online, interact with social networks, stream video, watch films, play games and connect tablets and mobiles to room TV’s. This means that a hotel needs to be able to offer strong, fast and reliable broadband speeds, especially for the business traveller and corporate market. For the first time hoteliers are having to catch up with guests’ own high-specification home technology. Paul Mansi, COO, Edwardian Group London Keeping abreast of technology will be both our challenge and opportunity for 2015. Innovation is at the heart of everything we do here at Edwardian Group London, so we want to build further tools internally for our Hosts, allowing them to deliver an enhanced experience for our guests throughout their stay. Technology can undoubtedly add value, helping to optimise revenue management and offering data and analysis for greater insight to improve both our product and service.

THE DIGITAL CHALLENGE Richard Moore, Area VP, UK & Ireland, Rezidor Hotel Group Digital will continue to be a key trend. People are more empowered than ever before and have a wealth of information at their fingertips to help make their decision on where to stay, eat or meet. As hoteliers, we need to embrace this and use it as an opportunity to



better engage with, inform, and understand our guests. Bronagh Bell, Director, Beardmore Hotel and Conference Centre Undoubtedly, we are also in an era where constant online reviewing and scrutiny from consumers has a major impact on guest’s decision making. Hotels need to be ensuring that all of their guests have a high quality, personalised, positive experience and provide appropriate responses to all online reviews. Shaun Hinds, MD International Operations, BridgeStreet Global Hospitality The issue for us in the serviced apartment industry, is a lack of consumer awareness. So, for us, the transparency offered by online peer-to-peer reviews are an important part of communicating the value, and sometimes the risk, of choosing a particular brand before customers even leave home. Business travel is being de-risked to a significant extent. At BridgeStreet, we see this as an opportunity; by continuing to clarify our service offerings and providing impeccable experiences, we are confident that travellers will continue to choose to stay with us. Peter Sangster, GM, Mercure Ardoe House Hotel and Spa Speaking from a brand perspective, there continues to be a key focus on driving customer loyalty through our various programmes and adopting a game changing approach as well as a proactive approach to social media, encourage our guests to book directly and incentivise

DIGITAL TRAVELLER

The biggest trend, which follows the pattern of 2014 though with even greater acceleration, is the rise of the digital traveller – those that can browse, select, book and consume at the touch of a button. Consumer behaviours and attitudes will always continue to change and shape our brand proposition as hoteliers. With transport and travel now even easier and luxury goods

more accessible, we are seeing a growth in a highly self-sufficient, interactive and engaged guest who knows what they want and when they want it. Time is a precious commodity and the customer wants more and expects more from their hotel experience. Danny Pecorelli MD, Exclusive Hotels and Venues

STRATEGIC YEARBOOK


CHANGING LANDSCAPE

them to do so, reducing reliance on OTAs. A key initiative for 2015 is our Welcome Project, making the guest experience with the hotel far more fluid and personable and in tune with changing technology, letting the guest check in and check out online while making the journey to their room far more seamless. For us, it’s about better engagement with the customer and consistent service delivery in line with the brand promise.

DON’T FORGET HUMANS! Richard Moore, Area VP, UK & Ireland, Rezidor Hotel Group First and foremost, we’re a people business and we recognise that it’s our staff - not the bricks and mortar - that will set our brands apart from our competitors. This will be a key focus for us - as well as being the best places to stay, we want our hotels to be the best places to work so that we are an employer of first choice for talented individuals. But, as the economy continues to strengthen, there will be an increasing battle for talent in the marketplace. Danny Pecorelli, MD, Exclusive Hotels and Venues Customers buy from people! So, recruitment and retention is a vital part of the brand promise delivery. Without the right team to deliver that amazing guest experience, we will fail as an industry, so finding, attracting and retaining great talent continues to remain a huge challenge for the hospitality industry as a whole. I still believe the industry has some work to do to compete with other sectors in the talent field, but strongly believe we’re getting there!

WORK TOGETHER IN 2015 Federico J. González Tejera, CEO, NH Hotel Group I think the challenges for the UK industry are the same as those for the hotel industry globally: profitability, improving guest experience, the speed of innovation and new customer habits, the sharing



economy and the challenge to recruit, develop and retain the best talent. To help us deal with these effectively, I believe we need to work together as an industry, because global challenges need global solutions. We need an industry association that, like the airlines, brings us all together and drives a concrete agenda that defines industry standards, making us strong to deal with the big issues of today and tomorrow.

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STRATEGIC YEARBOOK


SALES, MARKETING & DIGITAL STRATEGY

2015 sits at an important juncture in business history. Digital spend has finally tipped, and now accounts for over half the consumer spend in many UK sectors. The time has come for hoteliers to stop thinking of digital as something separate to marketing. Our hotel experts discuss their own sales and marketing strategies for 2015, and reveal themes that are consistent across the hotel sector.

FOCUS ON SALES IN 2015 Stewart Campbell, MD, Redefine BDL Hotels In terms of sales, 2014 has been a successful year, and we hope to replicate this in the coming 12 months. In the last 12 months, 95% of all our hotels have achieved more than their budgeted sales targets for their owners. Employee turnover across the sales support team has been 0%, and for hotel sales teams runs at less than 25%. Our central team of sales specialists will continue to deliver a ‘best in class’ service via three key principles: 1. Driving sales culture 2. Brand engagement 3. Training & development We have committed to delivering sales induction programmes to develop all new starts on key sales principles, as well as engaging in

CHAPTER TWO

SALES, MARKETING AND DIGITAL STRATEGY HOW WILL SALES AND MARKETING ACTIVITIES EVOLVE IN 2015? HOW ARE LEADERS ADAPTING THEIR DIGITAL MARKETING STRATEGY?


STRATEGIC YEARBOOK SALES, MARKETING & DIGITAL STRATEGY

‘train the trainer’ programmes. This will ensure consistency in terms of working in accordance with the company’s values. Quarterly regional communications meetings and our annual sales conference will support the 75-plus sales individuals across all hotels to achieve their sales targets. We also have to think creatively in terms of developing market share for our hotel owners, e.g. due to a lack of branded leisure opportunities, we grew our leisure team to engage in the domestic coach market – ultimately increasing our weekend occupancy by more than 10% over a two year period. This approach will continue into 2015. Olivia Byrne, Director, Eccleston Square Hotel 2015 will very much be a mirror of 2014 and 2013. Sales and marketing in the UK is as important as it was pre-Olympics. Business, commerce and tourism to the UK, specifically London is not slowing down. So, in addition to the domestic vision, we’ll continue to reach out and grow our already strong, international presence in our key markets. I’ve a number of international trips planned this year, including Japan, Europe, Hong Kong and New York - I’m really looking forward to showcasing London as I travel. David Vaughton, Director of Venues, EEF Venues As specialist meetings and conference

2015 SALES STRATEGY

EDWARDIAN GROUP LONDON’S SALES STRATEGY: As we move into 2015 – our sales focus will be along 3 main themes: 1. Customer insights: We will continue to develop the sales process to ensure we gain true insights into our customers, allowing us to communicate meaningful value propositions and negate commoditisation. We will also work more collaboratively within our organisation ensuring that the business allocates multi-disciplined expertise behind major accounts providing holistic fulfilment for our customers. 2. Technology as an enabler: The IT team continues to support the sales division, providing real-time access to remote product, pricing and availability knowledge. This is key to differentiating our sales team who should know ‘on demand’, Edwardian Group London’s status from competitor sales teams who need to ‘get back to customers tomorrow’! 3. People: Human capital within the team is something we also further invest in. Through training, empowerment and inclusion in strategy and decision making, it is important for Edwardian Group London to provide meaningful work to all employees. This manifests itself within the sales division as people being nominated owners of their sector and running their divisions as their own businesses. With this approach we ensure our employees always feel energised and fulfilled. Linda Plant, Group Director of Sales, Edwardian Group London

STRATEGIC YEARBOOK



venues, we tailor our services to the needs of the business client so our core target market is the business and industry sector. Our business growth is driven by customer service excellence and supported by a comprehensive marketing & communications strategy including telesales, SEO-driven website lead generation, direct mail, social media channels and a targeted media relations campaign. Our highly pro-active and targeted telesales approach will continue to focus on relationship building and is aimed at two distinct sectors: Corporate and Agency, each cultivated by a dedicated sales executive. Social media influence on buyer selections and preferences will grow so we will continue to embrace the social media channels that work for us. The power of multi-channel marketing will increase to connect with people ‘on the move’.

FOCUS ON MARKETING IN 2015 David Myers, CEO, Sleeperz Hotels Sleeperz Hotels’ sales and marketing activity focuses on developing meaningful relationships with existing customers and acquiring new guests via a multi-channel approach, on and off line, from PR campaigns to blogging and pay-per-click marketing. We can persuasively communicate with our current and former guests via e-marketing campaigns and our social media platforms, the challenge is reaching new guests. The OTAs help with a broadcast effect, but we need to ensure that we rank highly and perform well on SERPs (Search Engine Results Pages) for all hotel related searches in the cities where we have properties – Cardiff, Newcastle and Edinburgh. Partnership marketing is important to Sleeperz Hotels, and we continue to utilise off line advertising with local entertainment and events venues and online advertising and presence with Destination Marketing Organisations (DMO).



Good old-fashioned sales calls to local corporate clients will continue along with corporate evenings and enhanced rate packages. Gary Rice, General Manager of the Beardmore Hotel and Conference Centre Over the next 12 months we will continue to develop and manage our digital presence. This will include increasing our focus on social media, direct booking and continuing to build, develop and manage our online presence through third parties including our partner OTAs and online review sites including Trip Advisor. More in-depth analysis and management of Big Data will also be key to our revenue management and marketing activity. Going forward, the selective use of OTAs will be crucial, especially as we continue to work towards our 2020 Strategy of focusing on attracting international and medical events. Mike Dewey, GM at Hard Days Night Hotel The main principles moving forward are to invest in online activity and emphasise our customer relationship management. We hope that the direct marketing to our guests will enable a unique customer experience, in order to drive loyalty and referrals.

2015 SALES & MARKETING STRATEGY

REZIDOR HOTEL GROUP’S SALES & MARKETING STRATEGY: Marketing Focus In marketing, our focus is primarily digital, and this will continue to be our strategy. We have developed a state of the art CRM system, which is currently launching, and this will allow us to be much more sophisticated in our marketing communications. Sales Focus For sales, our priorities in 2015 will be: Driving profitable business Continuing to better understanding our

meeting and events opportunities Maintaining control of our inventory through

carefully controlling Last Room Availability (LRA)

Retaining and referring our business

throughout the estate Driving market share from existing

customers rather than trying to find new ones.

Richard Moore Area VP, UK & Ireland, Rezidor Hotel Group

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POWERFUL MARKETING DATA Dearbhla Mac Fadden, Director of Marketing, Edwardian Group London We embrace and develop our marketing strategies to better understand our guests’ desires and expectations. 2015 will see us adopting a more personalised and one-to-one communication model. Our sophisticated ‘Guest Plus’ profiles mean we will be able to offer our guests bespoke experiences: tailoring their stay with us in real-time, taking into account personal preferences. We will continue to use data to make our guests’ experience as seamless and memorable as possible. Stewart Campbell, MD, Redefine BDL Hotels Our marketing activity will evolve in 2015 to deliver upon robust leisure targets. Understanding our hotel customer behaviour will be key to our success this year. As such, we’re upgrading our database which will see customer records increase to three million. We’re also investing in growing our team in order to delve into data, form recommendations and create highly targeted offers for our customers. Central to our efforts is giving customers compelling reasons to remain loyal to Redefine BDL Hotels, so we’re developing a suite of

MARKETING SERVICED APARTMENTS

Consumers are not aware of serviced apartments and do not know the advantages they offer. As we move to a more conventional and highly competitive space, we want to disrupt our space and inspire the sector. Ideologically, there is a movement to clarify the

serviced apartment space from a visibility and financial standpoint, so continuing to provide information and drive awareness in the digital space remains key in 2015. Shaun Hinds MD International Operations, BridgeStreet Global Hospitality



reasons to come back to our 70 hotels across the UK.

DIGITAL MARKETING STRATEGY Stewart Campbell, MD, Redefine BDL Hotels Digital marketing will really come to the fore in 2015. Our recently announced major partnership with LRG Acquisition sees the addition of 22 properties to our portfolio, which results in the inheritance of around 40 new websites – as well as a new customer base to add to our own database which is already more than three million strong. We’ll also see the launch of a new central website, Great Hotel Offers, which will see Redefine BDL Hotels enter the arena of direct contact with the end customer. This is in addition to our Wonderful Weddings website, which focuses on the properties within the portfolio offering great value, quality wedding packages and services. Indeed, we’re recruiting more staff to our central office to assist with web and social media activity – a sure sign that digital is becoming an increasingly important area. Stephen Gow, Cluster GM, Thistle Hotels Scotland The opportunities available through digital marketing are huge and could be game-changing in 2015 with discussions on how

2015 DIGITAL STRATEGY

SLEEPERZ HOTELS’ DIGITAL STRATEGY: Our digital marketing strategy is geared towards driving visits to our website and converting visits into bookings. Our website remains our primary marketing focus and we continually work to refine the user experience and offer guests exclusive and inspiring content (blogs, image galleries and videos), offers and incentives. In 2015, we are likely to reduce our pay-per-click activity and focus more on paid for digital advertising with contextual targeting around entertainment and travel websites that cover our niche - budget travel and staying in style for less. Sleeperz Hotels values the freedom that social media affords us to engage with guests and win loyalty by providing useful information about the destinations where we have hotels. Our blog is a powerful vehicle for highlighting local activities, promotions, practical travel advice and enriching our website’s SEO keyword strength and readability. Online reputation management has a major impact on business and we use sophisticated software which makes responding to reviews less time-consuming. They are a source of powerful guest feedback that enables us to respond appropriately and manage both positive and negative reviews. An area we have identified for improvement is the way we target messages to our growing database of guests and successfully segment the database for our marketing campaigns. David Myers, CEO, Sleeperz Hotels

STRATEGIC YEARBOOK



review sites such as TripAdvisor could have an effect on hotel star ratings. In order to reflect the importance of digital marketing, we plan to increase our online activities and have appointed a new member of staff to specifically manage our digital campaigns in 2015. The important role played by social media has been in the mindset of Thistle’s three hotels in Aberdeen for some time, and in fact we set a standard by hosting the first wedding in Scotland to be staged entirely on social media. This was part of an innovative marketing campaign designed to grow the hotels’ social media presence by offering the opportunity to win a wedding at one of the Aberdeen hotels. All entries had to be made on Twitter: couples entered in the competition had to harness the power of social media to get as may retweets and favourites of their entry as possible, thereby spreading awareness of Thistle far and wide. The winning couple had to incorporate social media into all aspects of their wedding, from putting the hen and stag party pictures on Instagram to live tweeting their vows. As well as helping to grow our social media following, it provided a platform for us to engage with the wedding segment of the market, and showcase the events package available at the hotels. Federico J. González Tejera, CEO, NH Hotel Group We will continue with our digital commitment as proven this year with the complete redesign of our website and mobile platforms. Now that the new base is properly in place, we will focus on generating traffic and ensuring that we do it in the most efficient way, thanks to outstanding analysis and measurement.

SOCIAL MEDIA Conor O’Donovan, CEO, Sefton Park Hotel 2015 will continue to see hotels move away from traditional advertising channels and focus more on social media. We already



make extensive use of social media platforms including Facebook and Twitter and are continually reviewing our performance on them and looking to see what we can do to innovate and use them to attract more customers. As social media technology becomes more advanced, we are able to target specific markets and sets of customers, enabling us to more accurately measure our return on advertising spend. 2015 will also see us revamp our website and launch both a new app and mobile enabled website. We will also be launching a new loyalty club for our restaurant, O'Connor’s Bar and Grill. The loyalty programme will be built into our app, giving us an additional means by which to engage with and push offers out to our customers. Notwithstanding all of the foregoing, traditional advertising, particularly carefully targeted magazine and newspaper ads along with public relations activity will continue to form a very important part of our mix. Olivia Byrne, Director, Eccleston Square Hotel We should not forget that social media is a platform belonging specifically to Generation Y, or the Millenials, as some prefer to call them. This is a generation that has only ever known the internet and has seen the growth of social media. Eccleston Square Hotel has been a pioneer of technology and social media from the very beginning so these will be enthusiastic adjustments as the world sees the first real shift in social media marketing.

GOING MOBILE Stewart Campbell, MD, Redefine BDL Hotels We have a central marketing team responsible for a £1million budget, and online continues to form an ever-growing proportion of our revenue. With mobile and tablet traffic now accounting for just fewer than 50% of bookings on our websites, we are also investing in our digital resources. Like all consumer businesses, we’re be focusing on website content and finding ways to excite our customers at all points of their interaction with our brands.

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STRATEGIC YEARBOOK



DIGITAL ACTIVITIES: EDEN HOTEL COLLECTION

There is a definite shift towards digital, but we will not dispense completely with traditional marketing. It certainly has its place; however, digital is the way to go. Our websites are continually evolving and after a relaunch of Eden Hotel Collection’s group home page, which showcased a fresh new look, we will be working on the third-generation of the individual hotel websites. We will also continue to organically grow our

databases, in order that we may avoid flash sales by directly contacting our customers with tailored offerings. We also made a huge shift forward in 2014 with our social media presence and have created a strong and attractive brand, in particular across Twitter and Facebook, which we will continue to develop into 2015. We have a blog, which we are updating on a regular basis, as well as improving our presence on other social

media sites such as Pinterest and Instagram. We now have short films on all our hotels, which appear on our YouTube channel and give our customers a good idea of what the hotels offer. E-marketing works very well for us, and we continue to successfully build relationships with our customers through regular e-shots, which have an above average open rate for our industry. Mark Chambers MD, Eden Hotel Collection

STRATEGIC YEARBOOK


TECH SPEND

Keeping pace with technology can be difficult; you have to respond proportionately to the needs of the business and the needs of your guests to maintain a competitive edge. Here, our experts discuss the areas in which they will focus their technology spend throughout the year, and review the trends that inform their strategy.

ARE HOTELIERS INVESTING IN TECHNOLOGY? David Vaughton, Director of Venues, EEF Venues I think there is room for improvement when it comes to the amount UK hoteliers are investing in technology. Hotels shouldn’t underestimate consumers’ expectations and it’s not enough to provide complimentary Wi-Fi; it has to be high speed. It has to be as good - if not better - than what they have at home. Roberto Pajares, GM, Ampersand Hotel In our hotel, we are already investing in the improvement of our guest Wi-Fi capacity and speeds ... and we are only two years old! So, in many older hotel properties where investments haven’t been sufficient, I think that keeping pace with the demands of guest Wi-Fi remains an ongoing issue. Stewart Campbell, MD, Redefine BDL Hotels While it is important to ensure the latest technology is available for customers, the cost of purchasing and installing these facilities must be weighed up. As such, there’s a focus on ensuring spend is proportionate to the requirements of each property.

CHAPTER THREE

2015 TECH SPEND WHERE WILL LEADING HOTELIERS BE FOCUSING THEIR TECH SPEND IN 2015?


STRATEGIC YEARBOOK TECH SPEND

2015 HOTEL TECH SPEND

Redefine BDL Hotels: We will be responding to the bring your own device trend by investing in and enhancing our internet bandwidth in hotels. In order for guests to seamlessly use their own devices for the multitude of functions they demand – from watching movies to checking emails – bandwidth and connectivity has to be sophisticated. Part of our investment will be in tiering solutions, where we can tier the bandwidth available to ensure that all guests’ online demands can be met. Stewart Campbell, MD

Mercure Ardoe House Hotel: Driven centrally, we will be upgrading telephone interfaces, operating systems, IT systems and in-room technology. Peter Sangster, GM

Sefton Park Hotel: The majority of our tech spend in 2015 will go on smart TV systems and improving our broadband offering. We are also looking at ways of making the sporting offering in our bar more interactive - whilst some of this technology is still in its infancy, I think we will see big developments in the next 12-24 months. Conor O’Donovan, CEO

NH Hotel Group: We have unveiled a new service, High Tech Made Easy, designed to provide customers with cutting-edge technology, which ensures high-performance and high-impact meetings and events. The new range includes telepresence systems which combine the best in videoconferencing with interactive collaboration solutions. We are also introducing 3D holographic projection! Federico J. González Tejera, CEO

STRATEGIC YEARBOOK


TECH SPEND


Thistle Hotels Scotland: In 2015 we will be investing in our website and the mobile optimisation of the site. We will also invest in our property management system to improve the connection with customers and provide them with more options in how they book their stay with us. We are also investigating near field technology for keyless entry to rooms and the facilitation of digital newspapers being available in the bar area for guests to read on their tablet device. We are doing this quite simply because times are changing: we now live in a digital world and we cannot afford to remain static when everything around us is evolving. Stephen Gow, Cluster GM

Sleeperz Hotels: A significant investment will be made in enhancing the free Wi-Fi product at our hotels and in streamlining and refining our website booking experience in order to convert more visits into direct bookings. David Myers, CEO

Eden Hotel Collection: We are currently looking at investing in a big piece of technology at Bovey Castle. We are looking at in-room technology like iPads for Bovey Castle and our development project at Tides Reach. Mark Chambers, MD

EEF Venues: At EEF Venues, we have just invested in superfast synchronous internet, capable of delivering upload and download speeds of 100Mbit/s, across our three venues. Having this new technology on-site means delegates can carry out multiple on-line activities, stream videos in HD and upload and download large data files without any danger of frustrating and time-consuming buffering. David Vaughton, Director of Venues,



For example, hotels specialising in business conferences and corporate events, or which mainly host business travellers, will have a more urgent requirement for larger scale investment, as opposed to those hotels mainly accommodating leisure customers. Peter Sangster, GM, Mercure Ardoe House Hotel and Spa I think some hotels are better than others when it comes to investing in technology ... and probably a little slow off the blocks on this. We recently installed complete complimentary fibre optic Wi-Fi across the hotel, but it took time and there are still hotels locally that charge for this. In-room technology is crucial and fortunately our refurbishment programme allowed the opportunity to address this across the hotel. We have to wake up to our guests’ basic expectations with regards to technology, whether that be to work uninterrupted throughout the hotel or being able to Skype the family before bedtime. It needs to be fast, free and consistent.


Rezidor Hotel Group: We are upgrading our Wi-Fi infrastructures in the hotels. Due to the increasing amounts of technology that will use the Wi-Fi, we are upgrading, or in some cases replacing the entire Wi-Fi infrastructure, to ensure the guest has excellent coverage throughout all areas of the hotel during their stay. Richard Moore, Area VP, UK & Ireland

Ampersand Hotel: Improve analytics on our digital spend with the aim to improve our ROI (specifically on brand campaigns) and extend our spend on meta-search. Roberto Pajares, GM

Hard Days Night Hotel: We have upgraded all of the onsite hardware, and are looking at an upgrade in both PMS and EPOS systems, as well as enhancing the booking process. Mike Dewey, GM

STRATEGIC YEARBOOK


TECH SPEND

BYOD: BRING YOUR OWN DEVICE Peter Cashman, CEO, Focus Hotels Management Most - if not all - guests arrive with their own personal IT equipment and they expect multiple device access to the internet and quick, unlimited downloads. We are focusing our 2015 tech spend primarily on management and W-Fi systems, as these are key drivers of guest satisfaction. Stewart Campbell, MD, Redefine BDL Hotels The BYOD trend has very much changed the dynamic of what hotels need to provide for guests. Often, a hotel is now a facilitator for using your own technology and content, rather than a provider, therefore connectivity is of crucial importance and Wi-Fi has to be the norm.

BYOD: THE NEW SMART TV! David Myers, CEO, Sleeperz Hotels As 4G is rolled out across the UK and smart TV’s become more common, we are finding that guests want to stream media from their own devices via the in-room TV. We are currently reviewing the next generation of TV’s for our fourth hotel which is being constructed as part of a £1bn redevelopment of Dundee’s waterfront and railway station. Sleeperz Hotel Dundee is set to open in early 2017 – and we have to be careful not to be drawn into a tech-race because at the heart of our brand ethos is simplicity, style and convenience. We must ensure that ease of use remains central. Bronagh Bell, Director, Beardmore Hotel and Conference Centre We are currently reviewing our future spend on IT and in-room technology as we begin planning for bedroom remodelling. As more travellers and guests have their own tablets and smart solutions, we want to ensure we have the infrastructure to support their use within the hotel and conference rooms. Equally, however, we aim to provide all the additional requirements expected of a four star



hotel; this continues to evolve and will be regularly reviewed as part of our continuous service and technology improvement. Conor O’Donovan, CEO, Sefton Park Hotel Over the next 12-18 months I can see smart TV systems becoming much more of the norm, particularly as many of the budget chains are beginning to invest heavily in them and that end of the market sets many of the trends that the rest of us follow.

MORE IN-ROOM TECHNOLOGY Olivia Byrne, Director, Eccleston Square Hotel I think the majority of hotels are starting to understand the importance of in-room technology and that it is now becoming a client expectation. I think there was a recent turnaround in 2014 and people will be developing this area of their business in 2015. Mike Dewey, GM at Hard Days Night Hotel We have been investing in an array of in-house guest entertainment over the last 12 months, and we are proud to be the first hotel in the North West to provide PowerTV ONAIR. Moving forward, we are looking at paperless solutions for check in, check out and table service. In addition, we are looking closely at introducing digital walls and video walls. Danny Pecorelli, MD, Exclusive Hotels and Venues At Exclusive Hotels and Venues, we have installed Crave hotel tablets in each of our guestrooms at South Lodge in Horsham, West Sussex. The tablets have replaced the traditional guest directory, containing vital hotel information including service times, events and experiences as well as being able to reserve a table for dinner, order room service, or ask our hotel team a question. Guests are looking for the same hi-tech experience they have at home and on the move so expect to have information digitally available in an instant, rather than having to search through printed directories. The tablets have been well received by our guests, so we’re looking to roll these out across the portfolio in 2015 at a cost of around £220,000.

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STRATEGIC YEARBOOK


LEGAL BRIEFING

A recent decision of Employment Appeal Tribunal (EAT), which held that workers’ holiday pay should include payments made in addition to basic pay, has potentially far reaching implications for employers in the hospitality sector. We invite Laurence O’Neill, associate solicitor with Legal 500 firm Morrisons Solicitors, to explain the case and its implications for hoteliers in 2015.

* * *

WHAT IS THE HISTORICAL POSITION IN RELATION TO EMPLOYEES’ HOLIDAY PAY? For many years the position in UK law for any employee with normal working hours was that holiday pay was paid at the rate of basic pay only. Payments for things such as overtime, commission, performance bonuses and attendance allowances did not have to be included. Many employees felt this unfair: why should they receive less whilst on holiday than whilst working? So ran the argument.

THE TIDE BEGINS TO TURN It was an argument long-resisted by the courts, but the tide began to turn in employees’ favour in Williams v British Airways 2011.

CHAPTER FOUR

LEGAL BRIEFING: HOLIDAY PAY IN 2015 A LEGAL BRIEFING ON CHANGES TO HOLIDAY PAY IN 2015


STRATEGIC YEARBOOK LEGAL BRIEFING

In Williams, the European Court of Justice (ECJ) held that employees’ holiday pay should represent their “normal remuneration” and should include amounts in respect of all remuneration “linked intrinsically” to the performance of tasks which employees are contractually obliged to perform. This meant that BA pilots were entitled to receive, as part of their holiday pay, certain allowances that were previously only paid whilst they were flying. The Williams decision was followed by Lock v British Gas 2014. In Lock, the ECJ commented that workers should not receive less pay for holiday than for work, otherwise they might be discouraged from taking holiday, which would undermine the health and safety objectives of the European Working Time Directive (WTD). Following Williams and Lock several claims were brought in UK tribunals. These included the claims of Bear Scotland & Others, Hertel UK Ltd and Amec Group in which employees claimed that payments including non-guaranteed overtime, performance bonuses and attendances allowances should be included in their holiday pay. In all three tribunal cases the employees succeeded. All three were appealed to the EAT where they were combined and heard together under the lead case of Bear Scotland between 30 July and 1 August 2014.

THE EAT’S DECISION The EAT gave judgment on 4 November 2014. It confirmed that holiday pay must reflect “normal pay” and should include payments linked intrinsically to the performance of tasks required to be carried out under workers’ contracts.

STRATEGIC YEARBOOK


LEGAL BRIEFING

In summary: Where the worker can be required to work overtime such

payments should be included in the holiday pay calculation. No definitive ruling was given on whether purely voluntary

overtime should be included. Acas has commented in its guidance that ‘it may also be that regular voluntary overtime should be included if it is part of a worker’s normal remuneration’. This remains a grey area.

Certain allowances comprising payment for time spent travelling

to various sites (but not travel expenses) should be included. Although the claims being heard did not include commission the

Judge referred to commission on sales being included in holiday pay as a ‘settled view’ of the ECJ suggesting that it should be included.

The implication of the EAT’s decision is not just that employers should start including additional payments in employees’ holiday pay going forward but also that employees have been underpaid and have claims against their employers for back pay. Employer organisations feared an influx of claims for back pay and a Government task force was established to assess the impact of the judgment and make recommendations.

HOW FAR BACK IN TIME CAN CLAIMS FOR BACKDATED HOLIDAY PAY BE MADE? The time limit for filing an employment claim for unlawful deductions of underpaid holiday is three months (unless not reasonably practicable) from the date of the last deduction. Workers can claim for a series of unlawful deductions. Although never tested, the prevailing view is that such a series could stretch as far back as 1 October 1998, when the UK first brought the WTD into UK law through the Working Time Regulations 1998, or the start of the



employee’s employment, whichever is the most recent. There are two significant measures, however, which will limit the extent of back pay claims: ONE: The first is that, in its judgment, the EAT held that where

there is a gap of three months or more between deductions this will break the series of deductions that an employee can claim for. Given most employees’ holiday pattern, it should be common to find a gap of three months between underpayments in the not too distant past.

TWO: The second is that, just before Christmas, the

Government, following the recommendations of its task force, announced that it would legislate to limit the extent of back pay claims to two years. However, in the name of proportionality, the two year cap will only come into force for claims issued on or after 1 July 2015.

WHAT IS THE IMPACT ON EMPLOYERS? The Judgment in Bear Scotland does not give all the answers in what remains a complex area of law. For example, it is not clear what payments will be considered to form part of employee’s “normal pay”. Should purely voluntary overtime be included? Highly relevant in the service industry, should tips be included? There seems no obvious reason why not. Further there has been no guidance given on what reference period employers should use to calculate an employee’s “normal pay”. Should they take an average over, say, the 12 weeks earnings leading up to the employee’s holiday (a method applied elsewhere in UK law) or should it be some longer period? A longer period would certainly help to prevent employees from benefiting from windfalls by taking holiday immediately following a particularly busy time of year where their normal pay is unusually high.

STRATEGIC YEARBOOK


LEGAL BRIEFING

In terms of future payments, until there is further guidance, either through case law or legislation, employers will have to take a view about whether and how to start including additional payments in their workers’ holiday pay. Where this results in significant extra expenditure, they will also have to look at taking steps to make savings elsewhere, perhaps, for example, by declining to award planned pay increases or by reducing the amount of overtime or commission that is offered.

SHOULD I EXPECT BACK PAY CLAIMS? In terms of back pay, whether this judgment will lead to the mad rush of claims that was first feared remains to be seen. The three-month-gap principle established by the EAT and the subsequent government move to cap claims at two years will ultimately prove to reduce the incentive for employees to bring claims. Coupled with the fact that employees will now have to stump up tribunal fees and that, in most cases, they will still be employed and may not wish to upset their employers, perhaps the initial view of an influx of claims was somewhat overstated. That being said, where despite the disincentives, there is an appetite to bring claims – perhaps in highly unionised environments in particular - the Government’s move to cap all claims to two years from 1 July 2015 is likely to act as a touchstone and, if claims are coming, employers should expect to see them before then.

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Laurence O’Neill O’Neill is an Associate Solicitor with Legal 500 firm, Morrisons Solicitors. Morrisons has been providing legal services to businesses for almost 300 years and is one of Surrey's leading firms, with offices in Redhill, Woking, Wimbledon, Camberley and Teddington.

STRATEGIC YEARBOOK


TALENT MANAGEMENT

With talent management firmly on the 2015 agenda, how do leaders intend to develop their talent management strategy? The job market is changing, and hoteliers without workforce planning strategies in place will lose out. So, what are leading hoteliers doing to achieve a competitive edge with talent management? Conor O’Donovan, CEO, Sefton Park Hotel Talent management will be absolutely crucial in 2015! We want to attract great talent and retain it. Nobody stays in jobs forever any more, and I believe that moving on every three to four years is an important part of developing both your skills set and your overall personal development. It is therefore more important than ever that talent is nurtured at all levels in the organisation and that hoteliers have plans in place for every member of staff to help them grow and develop. Once they know that the business is investing in them, they will go the extra mile for the business. In turn, this enhances the overall guest experience, resulting in the business becoming more successful and putting it on a firm footing for growth. Peter Sangster, GM, Mercure Ardoe House Hotel and Spa Nourishing talent is massively important, but it’s not easy and I think it will get more difficult in 2015. We are fortunate to have the Accor brand behind us which provides a great platform, but being able to attract the right calibre of people and keep them engaged and motivated with a clear succession plan in place is challenging.

CHAPTER FIVE

TALENT MANAGEMENT STRATEGIES IN 2015 HOW SERIOUS WILL THE EXPECTED TALENT SQUEEZE BE IN 2015? WHAT TALENT MANAGEMENT STRATEGIES ARE LEADING HOTELIERS DEPLOYING?


STRATEGIC YEARBOOK TALENT MANAGEMENT

GLOBAL TALENT MANAGEMENT STRATEGY

Our Global Human Resources strategy is an essential enabler, aligned to our new NH culture, designed to provide the required foundation and support for the Group’s transformation. One of the keys of this strategy refers to the implementation of NH Leadership and the Talent Management Culture, which implies developing self-aware leaders that envision, inspire, energise, connect beyond any geographical or cultural borders. Talent Management is a key component for business success as it allows us to

identify, develop and engage top internal talent while at the same time attracting external talent, and increasing business results. We have already started developing our strategy in this area. So far, we have deployed worldwide talent mapping for the more senior positions of the company. As a result, each of the assessed executives is responsible for defining and putting in place their own action plan with the support of their leader and the company. Moreover, the first Annual Talent Review will be implemented in 2015. We will

identify the high-value experts and potential successors for the key positions worldwide which will help us to clarify our talent gaps, not only as a global company but for the selected potential successors. Additionally, we will define the corresponding action plans and map the market for alternatives as needed for key positions. Our aim is that, in time, leaders within the organisation become responsible for talent management and set up the talent management culture across the entire organisation. Federico J. González Tejera CEO, NH Hotel Group

STRATEGIC YEARBOOK


TALENT MANAGEMENT

On a local level we have to overcome the understandable pull of the oil and gas sector when trying to encourage young people to join the industry ... undoubtedly the stigma around long hours and low pay still exists.

DEVELOPING STRATEGIES Richard Moore, Area VP, UK & Ireland, Rezidor Hotel Group Talent management is key for us in 2015. First and foremost, we are a people business and we recognise that it is our staff and not the bricks and mortar that will set our brands apart from the competition. With that in mind, one of the key pillars of our 4D strategy is Developing Talent and we continue to invest heavily in creating a team that can deliver memorable experiences for our guests, creating emotional attachments and reasons for them to return again and again. As the economy continues to strengthen, there is a battle for talent in the marketplace, and we want to be an employer of first choice for talented individuals. David Vaughton, Director of Venues, EEF Venues Companies’ appetite for investing in talent and succession building will grow as recruitment of skilled candidates becomes more difficult in a stronger jobs market. We will continue to operate our internal rewards and recognition scheme and our staff appraisal scheme, Inspiring Performance. We use this to set goals linked directly to our business objectives for staff at all levels – this includes everything from excellence in customer service to people development and leadership skills. This focus on mentoring and developing has resulted in a loyal and motivated team, many of whom have been with us for over ten years. Our existing management team has been in place since 2005. In 2015, we will be placing an emphasis on succession building. Stephen Gow, Cluster GM, Thistle Hotels Scotland It is important to identify the talent and keep presenting new opportunities in order to keep things fresh. Because we’re one of the biggest hotel groups in the UK we can offer opportunities for talented



staff to work elsewhere, like our Marble Arch Hotel in central London. All of our staff receive two appraisals every year and are plotted on a talent matrix, which allows us to monitor the individual professional progression of each staff member. Stewart Campbell, MD, Redefine BDL Hotels We need to put a strong focus on succession planning. Our ambition in this area is to be transactional and transformational. The key will be having the right people in the right places and to appropriately up-skill members of staff to ensure that, when one person moves on (and up), their shoes can be filled with the minimum of disruption to the rest of the team. Shaun Hinds, MD International Operations, BridgeStreet Global Hospitality We have developed an Educational Sponsorship Program which allows employees to gain additional qualifications in their own time at a lower than usual cost. We cover 25% of tuition at the beginning of each employee’s program and will pay another 25% upon graduation. This is very popular with our employees and training is always linked to their current post.

TALENT KPI

I have found that there is a direct correlation between hot spots of high staff turnover and poor performance in the business. It’s vital that you have a happy team and strong leaders or the business will go backwards. With that in mind, it’s never been as important to seek out talent and retain good people within your workforce. As part of our New Year review our HR team will be assessing and seeking ways to improve KPIs around management and developing

this to ensure we have as strong a foundation as possible for the business. Our steady expansion as a collection has been underpinned by a very stable executive team, who have been instrumental in driving the business forward and who have 70 years of service across a team of seven members. This is quite an achievement and shows the high levels of loyalty the company inspires. Mark Chambers MD, Eden Hotel Collection

STRATEGIC YEARBOOK


TALENT MANAGEMENT

WORKING WITH TRAINING PARTNERS Danny Pecorelli, MD, Exclusive Hotels and Venues At Exclusive, each property has relationships with colleges and universities – some local and some further afield – but as a business we look at talent across every level. We are providing Graduate Management Programmes with the likes of Bournemouth University, the University of Surrey and Shannon College of Hotel Management to apprenticeships for students at South Downs College in Waterlooville. In 2015, we will continue to support talent development initiatives across the industry, including work with the Edge Hotel School, where we currently sponsor two students who come and experience work at Exclusive. We are also supporting students year round on the Ten out of Ten management scheme. Designed by Sue Williams at Cliveden House Hotel, the Ten out of Ten Programme supports those just coming into the industry, providing an incredible experience for graduates to learn within five star environments such as Chewton Glen, le Manoir, Chester Grosvenor, Pennyhill Park and South Lodge hotels.

PERFORMANCE MANAGEMENT

Here at Rezidor Hotel Group, we have made performance management a priority, which is an important part of talent management. Our performance management processes: Improve employee

performance Support employee

development Drive better business

results.

Next year we will be rolling out a training programme for General Managers and Area Directors called Coach to Coach, which helps managers to create effective personal development programmes. We know that concise, well-written development plans are essential for effective talent management across our business. Richard Moore Area VP, UK & Ireland, Rezidor Hotel Group



Stephen Gow, Cluster GM, Thistle Hotels Scotland We work very closely with Robert Gordon University in Aberdeen and take on several placement students every year – many of whom go on to work for us once they have graduated. Talent management is really very important as the hotel industry in Aberdeen continues to grow and develop. Stewart Campbell, MD, Redefine BDL Hotels Hotels are largely seen as a high staff turnover sector, however, we hope to continue our focus on learning and development. We aim to encourage part-time or temporary staff to seriously consider shaping their career in hospitality – along with solid succession planning. The focus is on developing talent from within the company as well as promoting careers within the hotels across the portfolio by offering work experience and apprenticeships. We already have 63 apprentices working across the group – some within the management company itself as opposed to the properties. We also operate Telford Hotel School in conjunction with Telford College, as well as the award-winning Chef Academy, which was designed to combat the skills shortage in the kitchen. Dearbhla Mac Fadden, Director of Marketing, Edwardian Group London Edwardian’s marketing and HR teams work hand-in-hand to invest in a dedicated in-house training school, The Edge. This programme allows us to be nimble and offer bespoke training for each grade and level. We now have in excess of 2,000 “hosts” across all disciplines and we encourage them to provide a genuine guest experience and wow our guests at every stage of their journey with us.

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STRATEGIC YEARBOOK


TALENT MANAGEMENT

DEVELOPING ACADEMIES

Talent Management is a key, not ancillary, part of our budgeting process and we invest heavily in it. It’s very much an open-door, two-way dialogue. We listen to our teams and ask them for feedback in the same way as we do our guests; so this year we are continuing to invest in upgrading back-of-house areas like changing rooms and staff canteens to really improve these environments for our teams. We adopt a strong philosophy to look outside of our industry

for inspiration, leveraging relationships with clients such as Google and British Airways to examine best practice. We even hold meetings in their offices to seek inspiration for how we can continue to improve. In short, Training and development is crucial.

EXCLUSIVE CHEFS’ ACADEMY Our Exclusive Chefs’ Academy has now launched. The Academy was designed to tackle the challenges of recruitment and retention in the chef industry. We award 13 chefs a two-year intensive training programme within Exclusive. It really is a one-of-a-kind programme and a rare opportunity for aspiring chefs to learn in two years what would typically take five years if they were to undertake their own separate placements

across the industry. It also takes the chefs though the complete plot-to-plate experience, putting them through their paces with supplier visits, theory, master classes and ultimately cooking for some extremely high-profile guests in the Michelin-level kitchens of the Exclusive Hotels and Venues portfolio. Such is our belief in the Academy and our passion for creating exceptional dining experiences across the group that we are in the process of building our very own cookery school at our Lainston House at a cost of around £1m. The Cookery School will be able to host a full range of cookery demonstrations, master classes and courses as well as host the Chefs’ Academy team in training when it opens mid 2015. Danny Pecorelli MD, Exclusive Hotels

WHO HAS CONTRIBUTED TO THE 2015 HOTEL STRATEGIC YEARBOOK?

The 2015 Strategic Yearbook brings together insight and strategy from the UK’s leading hoteliers. Discover who has contributed to this issue below: Richard Moore Area VP, UK & Ireland, Rezidor Hotel Group Federico J. González Tejera CEO, NH Hotel Group David Myers CEO, Sleeperz Hotels Peter Cashman CEO, Focus Hotels Management Conor O’Donovan CEO, Sefton Park Hotel Paul Mansi COO, Edwardian Group London Linda Plant Group Director of Sales, Edwardian Group London Dearbhla Mac Fadden Director of Marketing, Edwardian Group London Danny Pecorelli MD, Exclusive Hotels and Venues Stewart Campbell MD, Redefine BDL Hotels Mark Chambers MD, Eden Hotel Collection Shaun Hinds MD International, BridgeStreet Global Hospitality Stephen Gow Cluster GM, Thistle Hotels Scotland David Vaughton Director of Venues, EEF Venues Bronagh Bell Director, Beardmore Hotel and Conference Centre Olivia Byrne Director, Eccleston Square Hotel Peter Sangster GM, Mercure Ardoe House Hotel and Spa Gary Rice GM, Beardmore Hotel and Conference Centre Mike Dewey GM at Hard Days Night Hotel Roberto Pajares GM, Ampersand Hotel Laurence O’Neill Associate Solicitor, Morrisons Solicitors

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Business

hotel strategic yearbook

beardmore hotel

uk hotel industry

hotel analysis

free hotel data

rezidor hotel group

mercure ardoe house

nh hotel group david