The Royal Crescent Hotel in Bath will be looking to increase its business from the US this year, as growth from the UK and European markets flatline.
That’s according to the hotel’s general manager Jonathan Stapleton, who spoke to BH about plans for the coming year, and cited US and China as the places the property is most likely to see an increase from over the next 12 months.
He said that the hotel ‘is not forecasting at this time any tangible growth from either the UK and European markets’ and added that as a result this could delay further investment into the five-star 45-bed luxury hotel, which is owned by Topland Hotels.
Bath in particular is seeing a huge increase in available rooms for 2018, which Stapleton knows will mean the hotel has to work hard to compete.
He says: “It is right now hard to say with any confidence how 2018 will fully pan out. All we do know, is that with the cost of doing business still rising and the continued investment in our greatest asset, people, with a 4-5% increase in wage cost, improving NOI next year will become even more challenging.
“This combined with a diminishing labour pool and current business uncertainty across the UK, resulting in decisions being either put off or taken with shorter and shorter lead times, top line revenues will likely also be at some risk, especially we predict in the first quarter of 2018.
“What we are hopeful about, is an increase in US business through our US partners, also from China, for we are not forecasting at this time any tangible growth from either the UK or European markets.
“This could well mean the delaying of further investment in the product, until such time as confidence in the UK market in particular strengthens, also in light of increased room inventory/competition in most destinations.
The Royal Crescent Hotel relaunched in 2014 following a multimillion refurbishment after being acquired by the Topland Group in 2012.