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UK Hoteliers More Optimistic About Latest Reopening

Government Offers More Clarity in Lifting of Lockdown Restrictions

The 75-room Isle of Mull Hotel & Spa in Scotland is one property reopening on May 17 as the United Kingdom lifts lockdown restrictions. The property's reopening comes after a major renovation. (Facebook post, Isle of Mull Hotel & Spa, May 17, 2021)
The 75-room Isle of Mull Hotel & Spa in Scotland is one property reopening on May 17 as the United Kingdom lifts lockdown restrictions. The property's reopening comes after a major renovation. (Facebook post, Isle of Mull Hotel & Spa, May 17, 2021)

Hoteliers throughout the United Kingdom are rejoicing this week at the full reopening of the country's hotel industry, with hotels, pubs and restaurants now permitted to welcome guests and serve drinks and meals indoors.

Since April 12, hotels have been allowed to serve guests in outdoor spaces, but that relaxation of COVID-19 restrictions only permitted a certain level of revenue, especially in a spring season with inconsistent weather.

Last summer, U.K. hotels were allowed to reopen on July 4 following the ending of the first lockdown, but the government strengthened those restrictions and enacted a second lockdown in November and a third in early January.

For many hoteliers, there are distinct differences between the first reopening in the summer of 2020 and the one starting today.

Peter Hancock, CEO of Pride of Britain Hotels, said there's more optimism that hotels will stay open longer, perhaps for good.

“The great difference this time is more certainty, with all the stats pointing to the lifting of restrictions and no further lockdowns," he said. "It means there is a real prospect for hoteliers, and those restaurateurs still in the game, to start to recover the losses made over the last 13 months.”

For hotels outside urban locations, demand for bookings is already high, Hancock said.

“Bookings for luxury independent hotels in the countryside are amazingly strong,” he said.

This spring, Pride of Britain Hotels added to its portfolio the 45-room Haycock Manor Hotel, in Wansford, Cambridgeshire. That hotel will reopen on June 22, a day after all COVID-19 restrictions in the U.K. are expected to be lifted.

“I must say most of our member hoteliers, setting [those in] London and Edinburgh aside for the moment, seem to be extremely positive about the future,” Hancock said.

Hoteliers who manage considerably larger portfolios even share that optimism about the hotel outlook in the U.K.

Camil Yazbeck, senior vice president and head of development for Europe at Accor, said he could sense more optimism due to the anticipated pent-up demand domestically in the U.K.

“We are all also more knowledgeable about the pandemic and how to manage it better,” he said.

Yazbeck said that hoteliers’ ability to operate has been limited by government policy and restrictions, especially opening only for limited groups such as keyworkers. Although it's an admirable endeavor, it could never be profitable for the industry, he added.

Russell Kett, chairman of business advisory HVS London, said another “difference this time seems to be a result of hoteliers being better-informed and better-prepared, and there seems to be significant pent-up demand for hotels in drive-to, leisure locations."

The country's urban hotels are also expected to find creative ways to take advantage of the rising demand, Kett said.

"Even hotels located in city and town centers could endeavor to attract more leisure visitors by clever marketing and packaging of amenities. It will take some time for business travel and conference business to return,” he said.

The successful rollout of vaccinations in the U.K. should encourage more business and conference travel and business for hotels, Yazbeck said. At press time, almost 36 million residents have received their first dose and almost 19 million have had their second shot.

“If [hotels are] not making money that is not good for the owners. We are super-clean, following fully the cleanliness guidelines, [so there is] no reason there would be any risk, but if [guests] are not allowed to travel,” hotels can never function as they should, Yazbeck said.

Some hoteliers have used the lockdown period to prepare for reopening day.

The Isle of Mull Hotel & Spa — a 75-room property located in Scotland’s Inner Hebrides islands and which is part of Crerar Hotel Group — is nearing the final stages of a 3.5 million pounds sterling ($4.9 million) renovation.

Isle of Mull Hotel & Spa General Manager John de Villiers said hotels such as his are well-placed to capture domestic demand for tranquil locations and social distancing.

“We’re lucky enough to command a perfectly secluded location, which is truly idyllic," he said. "Our reopening gives us the opportunity to kick-start tourism on the island in earnest and to do our bit to help the local economy thrive.

“Along with our sister properties … we want to do our best to ensure the buoyancy of the Scottish tourism industry, which has so much to offer visitors no matter how far they’re traveling."

Already Ready

There have been mixed opinions as to whether the U.K. government could have reopened hotels and hospitality much sooner than May 17.

On May 3, the High Court dismissed a case brought by Hugh Osmond, CEO of pubs owner Punch Taverns, and Sacha Lord, night time economy advisor of Greater Manchester Combined Authority. The plaintiffs claimed the government had unfairly targeted the hospitality industries by delaying reopening, especially after non-essential retail businesses were allowed to open indoor spaces five weeks ahead of hotels, restaurants and bars.

Osmond also claimed the U.K. hospitality industry lost 200 million pounds sterling every day in revenue during lockdown.

Kate Nicholls, CEO of the U.K. hotel industry’s principal membership organization UKHospitality, said the end of the country's lockdown is a long time coming, especially for those hospitality venues that were at a disadvantage due to a lack of outdoor spaces.

May is a good month in which to open, even in the weather-challenged U.K.

“This also gives businesses far more certainty with trading no longer beholden to the weather," Nicholls said. "However, with significant restrictions still in place, this is a psychological opening rather than an economic one, with the profitability of the sector still a huge issue."

Pride of Britain’s Hancock said hotels should never have been forced to close at all.

“They offer safe environments with a lower risk of viral transmission than homes, schools or shops,” he said.

Kett also said hotels could already have reopened.

“In terms of preparedness, I suspect [they could have reopened], but the country needs to be careful to manage the reopening of facilities,” he said.