MEDIA CENTRE - Events

AHICE, London (07.26)

AHICE, London (07.26)

Philip attended AHICE’s event in the underground ballroom at the Pan Pacific Hotel in the City of London and brought back the following take-away nuggets.

• Fastest growing pipeline in Europe is in the UK and particularly in London (accounting for over 60% of all UK), across all hotel segments (probably because London consistently achieves one of the highest annual average occupancies in the world).
• To be successful, hotels must keep the operating model lean as F&B remains challenging. To succeed with F&B, need something special, especially as margins down from 20% to 15% in recent years.
• Strongest revenue growth in Europe is via ancillary spends, especially leisure/spa.
• Recent performance data indicates that London occupancy was largely stable compared to H1 2025 but ADR fell.
• Most demand growth to London coming from Europe. Growth from China is expected (as new flights into London to begin soon). Middle East demand fell 15% this year H1. H2 should be stronger than H1, driven by further Europe demand and growing US visitor numbers (28% of demand in upscale hotels v 20% in 2025). Middle East growth to be more limited (West End hotels with many suites likely to suffer most).
• Heathrow performance has been on unsteady ground for a few years and soon Government-contracted hotels could re-enter the marketplace, thus applying more pressure. Long term, more supply growth is likely if the third runway is built.
• Cardiff has little Corporate demand, mainly event driven market, thus pricing tends to be highly variable.
• MICE is growing around the UK (fastest growing segment), with some events moving from the Middle East and many more events generally, but still well below pre-C19 levels.
• Payroll, supply and energy costs growth expected to slow in 2026, but booking costs and credit card commissions could increase. Is the solution to booking costs the implementation of AI?
• Delano on Kensington Gardens (the former Baglioni) is opening soon with extensive F&B and a members club. Different designers were used to ID the property in the hope that such diversity will attract different feeder markets for the owner.
• Lyf to open at Stamford Bridge (lucky Chelsea FC) in a rebadge of the former Copthorne.
• Limited new-build activity at the moment. Some brands are therefore building their own assets as developers fail to make the maths cast.
• Despite decades of forecasting the middle’s demise, mid-market hotels still exist. Feeling is that polarisation is to increase, with more billionaires seeking Luxury and more youth living with their parents only able to afford Budget.
• Bridgerton’s set decorator had cut her teeth on hotel ID. Surprisingly there are many similarities between luxury hotels and movies: lots of spaces at once, multiple stakeholders/owners, emotive and managing large budgets.
• In the City of London, hotels still performing well mid-week, so strong that many wish they could extend. Weekend demand is also strengthening, with Friday now the slowest day and Sunday not as quiet as it once was. Many new high-rise office developments affecting hotel views but expected to drive more demand.
• More amenities and programming needed to attract guests requires more staff and this requires careful planning, especially in a seasonal market.
• Weight loss jabs could have an effect on demand, especially in F&B and other amenities, and this trend could gather pace as the pill version becomes available. Hotels need to develop new strategies to meet the changes.
• In Docklands, residential units are frequently let on Airbnb and this suppresses local hotel occupancies. Not so in the City, where there are few residential units.
• A new Firmdale is coming to Shoreditch. The first new Firmdale for many years. Very exciting.
• The introduction of a Visitor Tax in Amsterdam has had a negative effect on hotel occupancies. In London, Corporate demand unlikely to react to any new Visitor Tax, but MICE and Leisure, who can choose from multiple destinations around Europe and beyond, may be affected if such Tax set too high.
• Live music programming can drive additional F&B demand with costs not necessarily high and can work in small/tight spaces. More music please. Why are concerts not hosted within hotels? “Play it and they will come!”
• Joe&Joe is co-locating with Student Resi in France. Lookout for more and in UK.
• 70% of new hotel signings in Europe were conversions in last two years (both existing hotels re-/badging or office to hotel use).

Many thanks to James and the AHICE team for hosting such an informative event again and looking forward to #4 in 2027.