Andrew Stembridge, executive director at Iconic Luxury Hotels, has told Boutique Hotelier that despite the rise in operating costs in 2018, the four-strong group is beginning to benefit from collective purchasing and is expecting a profitable next 12 months.
Looking ahead to the next 12 months in business, Stembridge said that he was forecasting for leisure to stay ‘incredibly strong’ across the portfolio, which includes five-star properties Chewton Glen, Cliveden, Lygon Arms in the Cotswolds and London hotel 11 Cadogan Gardens.
He said that despite the rise in operating costs predicted for 2018, which will ‘challenge conversion’, the strength of the four hotels is helping with group purchasing.
Stembridge also commented that the group has robust team strategies in place to help control labour costs, as the industry undoubtedly heads into a tough year for recruitment.
“In all of our properties, we are forecasting for leisure to remain incredibly strong with the weak pound fuelling domestic staycations and overseas visits, especially from the US,” Stembridge says.
2017 saw ILH invest ‘heavily’ in the portfolio, with a new cookery school and super treehouse at Chewton Glen, a complete refurbishment of Lygon Arms and the acquisition of 11 Cadogan Gardens.
“Having invested heavily in 2017 across The ILH (Iconic Luxury Hotels) portfolio, we are in a strong position to make the most of this opportunity and continue to grow market share. A royal wedding will undoubtedly reignite interest in the UK and drive business particularly to our Chelsea property, 11 Cadogan Gardens and to Cliveden with its long history of Royal connections,” he adds.
The hotels operate under the Iconic Luxury Hotels umbrella, owned by London & Regional, a global private investment company.