We recently had the pleasure of joining over 1,100 hospitality industry leaders at The Annual Hospitality Conference, held in Manchester at the impressive Central Convention Complex.
The two-day event, centred around the theme “Proven Paths, New Horizons,” provided a comprehensive overview of the UK hospitality landscape in 2024.
Here we present 5 key themes from the insightful presentations, panels and healthy debate:
1. Politics: Time To Suit Up!
Robert Shrimsley, Editorial Director for the Financial Times, began the AHC by noting that there remains “a phenomenal amount of unanswered questions” when it comes to the UK’s new leadership’s direction, intentions and roadmap for success. These political unknowns, and their impact upon UK hospitality, were a theme echoed throughout both days of the show.
IHG’s Joanna Kurowska highlighted that while early signs of Labour’s intent to support hospitality were positive, “we haven’t seen any action yet”. While Louisa Green from RBH Hospitality Management noted some political headway for hospitality; “as an industry, we were concerned that we weren’t on the radar, so getting on the agenda is good progress”.
The upcoming Autumn budget will offer UK hotelier’s some steer for the future, however it’s wise remain realistic about the challenges ahead. As Robert Shrimsley aptly surmised;
“It’s a pretty monumental task ahead for the UK Government, they need to suit up!”Robert Shrimsley, Financial Times
2. Recovery: A Mixed Bag
STR’s latest data highlighted the UK’s global leadership in hotel occupancy, boasting a robust 77%. While occupancy remains impressive, it’s ADR (Average Daily Rate) that’s driving the real growth story here. ADR has shown consistent increases across 2024, with April being the only exception due to Easter’s early arrival in March.
NatWest’s Sebastian Burnside commended the UK’s “exceptionally strong and resilient economic performance.” However, Louisa Green of RBH Hospitality Management noted that the pandemic’s lingering effects are still evident in shorter booking windows compared to pre-pandemic levels. Corporate and MICE (Meetings, Incentives, Conferences, and Exhibitions) sectors, in particular, are yet to show the same levels of growth.
Finally, Ronen Nissenbaum of Fattal Hotels highlighted some unevenness in the UK’s hotel recovery; key city markets like Edinburgh and London have demonstrated significant growth, while regional areas haven’t quite caught up yet.
See also: The State of Hospitality 2024 (Free Report)
3. AI: Solving New (And Old) Challenges
Perhaps unsurprisingly, the conference saw multiple sessions touch on AI’s continued transformative effect on hospitality.
While the benefits of AI are undeniable, a key theme emerged: the human touch remains irreplaceable in hospitality.
“We’re a people-centric industry” stated Louisa Green of RBH Hospitality Management. “However, the more we can take away some of the more mundane tasks and invest in the guest journey, the better”.
“We still need a human to orchestrate and to conduct, rather than play the instrument”Michael McCartan, IDeaS
This sentiment was echoed by Michael McCartan of IDeaS, while discussing the value of an RMS, powered by AI, in helping to dynamically price. “A RMS plays it’s role in the tactical, the heavy lifting, identifying opportunities 24/7, where a human might miss” he explained. “But we still need a human to orchestrate and to conduct, rather than play the instrument”.
Shaun Sequeira of HiJiffy offered practical advice on preparing hotels for AI adoption. Dispelling some common myths, he went on to share key considerations when looking for an AI solution; automation levels, available integrations and, perhaps most crucially when implementing new tech, the level of customer support you can expect to receive.
See also: HiJiffy and Booking.com partner to simplify guest communications
While AI’s role in innovation is exciting, a compelling argument was made to use it to address longstanding challenges too.
One key issue, as Paul Finch of Agilysys pointed out, is achieving a “single view of the guest” – truly understanding their needs and preferences for maximising revenue. “AI can analyse data to build this view,” Finch explained. “This allows for personalised experiences and helps us determine how to drive more incremental revenue per guest, beyond RevPAR, to look at a Revenue Per Available Guest (RevPAG).”
See also: APAC Travellers Seek Personalisation: Study Reveals Untapped Revenue Potential for Hoteliers
Duncan Osborn of Sabre Hospitality reinforced this point further, noting the growing importance for hotels to move beyond basic room bookings by offering personalised experiences and leveraging technology like SynXis Retailing to increase revenue beyond just rooms.
4. Hospitality – More Than A Job
One wholesome theme throughout the conference was the pride and appreciation we should have for working in the hospitality industry.
Keen to make hospitality a more attractive industry to work in, Simon Ewins, Managing Director UK Hotels & Restaurants for Whitbread PLC, boasting an impressive 85,000 rooms in the UK, noted that the sector doesn’t get the credit it’s deserved. “It feels like, in the UK, if you work in hospitality, you could have done better when the truth is that the boardrooms of hotel groups are filled with people who joined hospitality for a job and now have a career”.
The shift to hospitality becoming more of a career of choice was also flagged by Stephen Cassidy, SVP & Managing Director, UK & Ireland of Hilton who noted that retention levels are improving and there’s a shift from casual to permanent employment within the sector.
Referencing classic ‘bar to boardroom’ scenarios, Cassidy continued, “we have a vision of hospitality being a career of choice, because it presents extraordinary opportunities. You have the opportunity to progress like no other industry”.
Kate Nicholls, an enthusiastic champion of UK hospitality, surmised that there is undoubtedly a problem with the perception of our industry and that “we need to be talking more positively about the benefits that we provide”, adding that;
“We have to be positive and relentlessly optimistic”Kate Nicholls, UKHospitality
5. Hotels Are The Centrepiece Of The Community
Beyond commercial returns, the conference also highlighted the broader benefits of new hotel openings.
Cherise Cochrane of Colliers emphasised the importance of considering a hotel’s contribution to the overall destination. “We look at the bigger picture of how the destination comes together and how the hotel can contribute to the destination” she explained.
Accor’s Philip Lassman echoed this sentiment, stating “hotels, whether ibis or Raffles, have to be the centrepiece of the community”.
In Summary: a positive outlook for UK hospitality
With an impressive 99,000 rooms under construction, the UK is experiencing the largest influx of hotel supply in Europe. London leads the way, with nearly 9,000 rooms currently in development, representing 6% of the city’s existing hotel stock.
STR forecasting also shows steady occupancy growth (+1-2% annually) and ADR growth (+3-4) for 2025 and 2026, indicating a positive outlook for our industry.
Finally, Hotstats’ Michael Grove, revealed annual profit margin gains in 2024 across most hotel segments, including midscale, economy, and luxury properties. Only ultra-luxury properties saw a slight decline, from 31.7% in 2023 to 29.7% in 2024.
So, while 2024 hasn’t been without it’s challenges for hoteliers, UK hospitality appears poised for a bright future, fuelled by a robust pipeline of new hotel development and positive economic indicators.
Register your interest in The Annual Hospitality Conference 2025 here >>
Photography by Simon Callaghan Photography
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