MEDIA CENTRE - Events

CMS Hospitality Conference, London (09.24)

Philip attended the annual CMS Hospitality Conference and brought the back the following take-away nuggets:

• Our wonderful hosts had been busy with multiple deals already in 2024 and expecting more in Q4 as the economy improves.
• Lloyds’ economist said GDP better than expected in UK and worse than expected in USA and Europe. Thus, rapid rate cuts expected in USA (six in four months, go figure) and Europe, and slower rate cutting in UK. As a result, GBP could increase in value (not so good for London’s hotel market) and oil likely to remain low.
• Election in USA in November, however, could change everything if Trump wins.
• In UK, political stability and lower inflation good, but concerns re new workers rights and more taxes may constrain investment and growth.
• Trends data showed that Tourism & Recreation output was lowest of all sectors recently (was top two years ago, post-C19) and yet Beverage & Food was top (but this relates to production rather than sales and services in pubs and hotels). People are eating and drinking but seems as if their sofas are seeing the benefits, not our venues.
• Employee earnings are increasing, above inflation, and savings are being repaired, thus more confidence expected over next 12 months.
• Interest rate cuts expected soon but rate of wage growth likely to constrain such rate cuts (will be cut at a slower rate than expected). Finding people/staff is a major constraint to growth and driver of wage inflation.
• Tax rises likely in order to repair national debt.
• UK Hospitality stated that HMGs don’t see hospitality as productive and thus not critical to the economy. They take a reductive view, whereby resources would be better repositioned towards more productive sectors. However, hospitality is key to ‘place making’, preservation of our built and natural heritage, and generating employment. Despite government indifference, hospitality is one of the fastest growing sectors in the UK.
• Even though consumers clearly demand hospitality, the sector must compete with the consumer’s sofa and our venues must differentiate from the sofa by offering experiences.
• UK Hospitality challenges in 2025: finding talent (especially after the nation voted for Brexit), Business Rate relief to end in April and increases at 2x inflation, other taxes to be introduced as HMG makes life even harder for our sector.
• Maybourne Hotel Group CEO, formerly an asset manager by trade, now realises just how tough it is to operate a hotel.
• Emory opened recently, the group’s first all new hotel in London in 50 years (ignoring the massive reinvention and expansion of its sibling, Claridges). Formerly an office block, demolished and rebuilt as a modern hotel: all suites (60 keys), highest ADR in London (over £2,000), 2x rooftop venues, each floor designed by a different designer, and a very successful wellness centre.
• Maybourne not experiencing pressure on ADR in London properties but new supply has had an impact on occupancy. US visitor volumes are lower than normal due to election. Guests staying for shorter time (likely due to less shopping, due to no VAT Refunds)
• Group’s European hotels are having a record year (likely due to more shopping, due to London’s loss of appeal).
• Company pipeline a mix of ownership and third-party deals: Paris (with branded residential), Miami, a UK country estate, Dubai, branded residential in New York City. As aiming for ‘uber’ luxury exclusively, group targeting a maximum of 20 hotels only globally.

Many thanks to Tom, his partners and support staff for their excellent event, knowledge sharing and refreshments. Well done and looking forward to the same next year.