Category: Hospitality

The MHL Hotel Collection has announced the signing of a contract with May Street Capital to acquire the former Park Inn by Radisson Hotel in Belfast. This purchase will bring its total number of hotels on the island to 14. This purchase is the Collection’s first acquisition outside the Republic of Ireland, and its first hotel in Northern Ireland’s capital city.

 

‘Major Refurbishment’

“We are very pleased and excited to have signed contracts to acquire our first hotel in Belfast and are planning to invest over €8 million on a major refurbishment that will transform the hotel,” said Paul Higgins, partner at MHL Hotel Collection. “We have seen how much guests love our fun and contemporary Moxy Dublin City Hotel, and we look forward to bringing the Moxy brand to the heart of Belfast.”

 

Moxy By Marriott

The acquisition is expected to complete before the end of this year. Following a planned €8 million refurbishment programme, the hotel will re-open in the first half of 2025. The team said discussions are already at an advanced stage to brand the hotel as a Moxy by Marriott. This would make it the fourth hotel owned and operated by MHL Hotel Collection under a franchise agreement from Marriott International and would become the second Moxy by Marriott within the collection.

 

Cathedral Quarter

The hotel at the Clarence West building has 145 bedrooms and is within walking distance of Belfast City Hall, Ulster Hall and Victoria Square Shopping Centre as well as the restaurants, bars and nightlife that the Cathedral Quarter has to offer. “We also look forward to engaging with local businesses and organisations in the region so we are best placed to support the local economy and hospitality sector, not least by creating up to 60 full and part time roles,” said Higgins.

 

The Deal

MHL were advised by Arthur Cox and Deloitte. May Street Capital were advised by MMW, Grant Thronton and ASM. The deal was brokered by JLL Dublin.

A new report published by the Irish Tourism Industry Confederation (ITIC) has warned that government labour policy will add €1.4 billion to payroll costs of tourism and hospitality enterprises between now and 2026. ITIC has said that mitigation measures are urgently needed to ensure the competitiveness and viability of Ireland’s largest indigenous industry and biggest regional employer.

 

‘Tipping Point’

“With St Patrick’s weekend behind us we’re now into the tourism season proper and it is clear that the industry is at a tipping point,” said Elaina Fitzgerald Kane, Chair of ITIC. “North America looks strong but other source markets are soft and there is an enormous cost burden being imposed on businesses which is threatening the viability of many”.

 

‘Significant Pressure’

Economist Jim Power has published a report for ITIC entitled ‘An Analysis of Government-induced costs on tourism and hospitality enterprises‘ and it argues that labour market measures including the move to a living wage, PRSI increases, pension auto-enrolment, and enhanced statutory sick pay are all adding ‘significant pressure’ on the sector and will add 6.6% to payroll costs this year alone and 19.4% by 2026.

 

The report argues for the restoration of the 9% VAT rate for the sector, changes to employer PRSI rates, and an annual enterprise support package.

 

Dublin Airport Cap

Meanwhile, Eoghan O’Mara Walsh, CEO of ITIC, warned that the cap at Dublin Airport meant that future tourism numbers were “jeopardised.” He also criticised the state’s “over-reliance” on the hotel sector for humanitarian purposes.

 

‘Hugely Destabilising Effect’

“Over 20% of all tourism beds nationally have been taken out of the tourism economy at this stage by the Government. That is having a hugely destabilising effect,” said Eoghan O’Mara Walsh.

“We are calling on Government to urgently develop an alternative plan to house Ukrainian refugees and international asylum seekers otherwise this summer there will be tourism towns the length and breadth of the country without an adequate supply of tourism beds and therefore with very little tourism activity.”

Only 14% of Irish restaurants managed to increase profitability in 2023, compared to the 70% that saw a decline – the highest proportion of any tourism sector to announce this, according to Fáilte Ireland. The Fáilte Ireland Tourism Barometer showed that 42% of restaurants were up on customers in 2023, compared to 2022, and 38% were down.

 

The research shows that the food-and-drink sector is affected particularly adversely, with 80% of respondents citing ‘rising payroll costs’, 74% citing ‘rising costs besides energy or payroll’, and 71% citing ‘rising energy costs’ as concerns.

 

‘Urgent Message’

Last month, Paul Lenehan, president of the Restaurants Association of Ireland (RAI), released an “urgent message” to the government, encouraging it to do the “right thing” for local restaurants and cafes.

 

“The rising costs we are incurring through wage inflation, food costs, [and] energy costs are out of control, and everything, including the 4.5% added to the VAT rate in the last Budget, has made our businesses completely unviable,” said Lenehan. “Our cash flow is at an all-time low. Our VAT returns made only for November and December have proved that to everybody. Our businesses are simply not viable.”

 

Pubs And Bars

Meanwhile, 50% of pubs and bars were up on customers in 2023. This compares to the 31% reporting trade to be down, according to the Tourism Barometer.

 

However, profitability in 2023 was the other way round, with 37% reporting it to be up, but 46% noted that it was down.

 

The research shows that 25% of pubs and bars expect customer numbers to be up this year, but 44% noted that they are facing a decline.

 

‘Election Year’

Earlier this month, the Licensed Vintners’ Association (LVA) announced plans to make the restoration of the 9% VAT rate for food an issue in the run-up to the local and European elections this summer.

 

“We hope this will help focus minds and that the government will take action on the VAT rate before more food-led businesses go to the wall,” said Donall O’Keeffe, CEO of the LVA. “The industry is crying out for this issue to be addressed, and the politicians would be wise to reflect on that matter in an election year, and with a general election also on the horizon.”

Ireland will play host to the first ever IRELAND X-Change in the coming days, a global incentive travel sales platform, which will bring together up to 100 of the top North American business event planners and global incentive suppliers for a week of one-to-one business meetings and networking.

 

The regions of Kerry and Dublin will be showcased as diverse and green destinations for world-class incentive programmes. Fáilte Ireland, in collaboration with Tourism Ireland, won the bid to host the sales platform, which runs from April 8-13.

 

‘Future Opportunities’

“This event, which is proudly supported by Fáilte Ireland, is the perfect platform for this community of incentive professionals to meet, network and share industry insights,” said Paul Mockler, Fáilte Ireland’s head of commercial development.

 

“Importantly it will also help establish and maintain relationships between global business event planners and Irish tourism suppliers, which will no doubt result in future opportunities for international incentive programmes to come to Ireland.”

 

Incentive Travel

Incentive travel is defined as a once in a lifetime travel experience used by organisations to motivate, incentivise, and reward top preforming employees.

 

Business event visitors are estimated to be worth 2-3 times the value of leisure visitors.

 

IRELAND X-Change

By hosting IRELAND X-Change, Kerry and Dublin will be showcased as world-leading incentive destinations, and business event planners will experience a bespoke once in a lifetime programme including Killarney National Park, Muckross Traditional Farms, before heading to Dublin for Windmill Lane Studios and the Guinness Storehouse.

 

Fáilte Ireland in partnership with Tourism Ireland, will host ten of the top North American business event planners on a familiarisation trip prior to IRELAND X-Change, where they will get to see even more of the country. This will include exploring Ireland’s Ancient East, with an incentive programme showcasing Wicklow, Kilkenny, and Tipperary, before concluding in Kerry.

 

‘Emerald Isle’

“We very much welcome the opportunity to increase awareness of Ireland among these influential business event planners, ensuring the Emerald Isle is kept top of mind and is considered as a host destination for incentive travel programmes for future years,” said David Boyce, head of business events at Tourism Ireland.

 

“Hosting this conference will help Ireland to secure a greater share of the worldwide incentive travel market, which as a segment generates annual spend of more than $78 billion (€72 billion), and its regional spread and seasonality makes it a perfect target for a destination like Ireland.”

The O’Donoghue Ring Collection has announced that three of its hotels in Killarney have achieved a Green Hospitality Eco-Certification.

 

Killarney Towers Hotel & Leisure Centre, Killarney Avenue Hotel, and Killarney Plaza Hotel & Spa have each been recognised for making positive strides towards a more sustainable future with their commitment to environmental stewardship and responsible business practices.

 

‘Milestone Step’

“The Green Hospitality Eco-Certification across these three hotels is a milestone step for our group on our environmental journey,” said Brian Lawlor, group general manager at the O’Donoghue Ring Collection “Since 2020, the O’Donoghue Ring Collection has taken a property-by-property approach to minimise environmental impacts or our properties.”

 

Global Award

The Green Hospitality Awards is an internationally recognised third-party environmental & sustainability certification awards programme. It requires businesses to implement an Environmental Management System focusing on energy, carbon, waste and water.

 

The O’Donoghue Ring Collection

Killarney Towers Hotel & Leisure Centre reduced energy consumption per sleeper by 22% compared to 2022, food waste per food cover by 67% compared to 2022, and water consumption per sleeper by 51% compared to 2022

 

Meanwhile, Killarney Avenue Hotel reduced energy consumption per sleeper by 12% compared to 2022, food waste per food cover by 69% compared to 2022, water consumption per sleeper by 36% compared to 2022.

 

Finally, Killarney Avenue Hotel reduced energy consumption per sleeper by 12% compared to 2022, food waste per food cover by 69% compared to 2022, and water consumption per sleeper by 36% compared to 2022.

 

‘Launching Pad’

“While we celebrate these fantastic achievements, we also recognise that our journey toward sustainability is ongoing. Our eco-certification serves as a launching pad for further innovations and improvements in environmental practices,” said Gemma Ring, managing director of the O’Donoghue Ring Collection.

 

“Together, with our partners and the communities we serve, we will continue to explore new opportunities to make a lasting, positive impact on our environment and society.”

The 2023 Dublin licensed-premises property market again witnessed a stable level of activity that was buoyed by good demand, resulting in a consistent volume of sales being completed throughout the year, according to a new report from Lisney Ireland. The report shows that 21 pubs changed hands, with a combined value in the order of €50 million. This compares to 24 transactions in 2022, realising a combined value of just over €53 million.

 

Dominant Purchaser Class

Almost 30% of sales completed realised sums north of €3 million, and publicans remained the dominant purchaser class, accounting for approximately 70% of all sales. Off-market transactions remained a feature of the market, accounting for almost one quarter of all sales completed, according to the report.

 

Supply

Supply remained consistent throughout 2023, with 76% of all sales completed coming from properties that were publicly offered for sale, compared to 43% in 2022. Lisney noted that supply was influenced by various factors. Certain offerings were retirement driven, others centred around business realignment, and some were debt and restructure related.

 

Core Demand

The report found that core demand in 2023 was again focused from within the industry, with publicans remaining the dominant purchaser class, accounting for 70% of the volume and 66% of the value thereof. Lisney noted that activity within this sector has increased, year on year, over the past three years, which illustrates continued operator confidence within the market.

 

Developer Activity

Investor demand also remained stable, although it accounted for a slightly lesser volume than it witnessed in 2022, realising 25% thereof and 33% of value. Developer activity reduced again, representing only 5% of volume and 1% of value, with appetite likely hampered by rising construction costs and planning delays.

 

Private Equity

The report indicates that private-equity purchasers remained active in sourcing specific opportunities within the upper tier of the market, however, they did not complete any transactions. When consideration is given to the asset classes targeted by private-equity purchasers, coupled with their specific criteria relating to profitability requirements and future business development potential, Lisney noted that it is clear that that are very few opportunities that meet their specific demands.

 

The estate agents believe that the scarcity of the opportunity pursued is a direct factor in their reduced activity within the past 24 months.

 

City Centre Premises

Lisney noted that appetite remained for well-located city centre premises, as illustrated by the sales of JW Sweetman’s, on Burgh Quay, the Barge, on Charlemont Street, the Bachelor Inn, on Bachelors Walk, the Fade Street Social investment, and Grand Social, on Lower Liffey Street.

 

The report shows that the suburban market continued to witness keen demand, with sales completed for large well-known and established premises, such as the Abbey Tavern, Howth, Mulligan’s, Sandymount, the Terenure Inn, Terenure, and McCloskey’s, Donnybrook.

 

Reversal Of Trend

While off-market activity continued to feature, the 2023 market was characterised by a dominance of transactions completed from public offerings, accounting for 76% of volume and 75% of total value. Lisney noted that this is a reversal of the trend witnessed in 2022, when off-market transactions accounted for 58% of volume and 69% of value.

 

‘Trading Challenges’

“Moving into 2024, appetite to acquire remains strong, however, trading challenges do remain. The recent increase in minimum wage, coupled with the VAT increase on food sales, will directly impact on bottom-line profit,” said Rory Browne, divisional director in Lisney’s licensed and leisure department. “We see publicans remaining as the dominant purchaser class, with developers possibly less active due to the rise in bill costs, coupled with difficulties in securing funding.

 

“Private equity we see remaining focused on the larger established cities, primarily targeting businesses that enjoy high volumes of trade with strong bottom-line profit.”

Meeran Manzoor, executive head chef of the Blue Haven Collection and Rare restaurant, speaks to Robert McHugh about how his unique upbringing influences his cooking style. Meeran Manzoor took home gold in Ireland’s Chef of the Year category at the Virgin Media Business Gold Medal Awards in January.  The menu in Rare is influenced by Manzoor’s Tamil Nadu heritage. Diners can choose from a five- or seven-course tasting menu, which are both available with wine pairings. The Blue Haven Collection includes the Blue Haven Hotel, the Old Bank Townhouse, the Schull Harbour Hotel, Hamlets Bar & Kitchen, Kiely’s of Cork and the Black Barrel, Midleton. Rare at the Blue Haven is located in the Blue Haven Hotel on Pearse Street, Kinsale, Co. Cork.

 

In an exclusive interview with Hospitality Ireland, Manzoor discusses his pride at being named Ireland’s Chef of the Year and how his unique upbringing influences his cooking style.

 

You took home gold in Ireland’s Chef of the Year category at the Virgin Media Business Gold Medal Awards. How did it feel to win such an honour?

It feels amazing. It is a great motivation factor for the team. Recognition is always good, and this is the highest form of that – particularly during a difficult time for the hospitality industry.

 

Tell us about your background – where you grew up, studied, etc.

I am from Chandigarh, in India. I moved to London when I was 18. I studied in the University of West London and studied culinary arts there. I worked in Metropolitan Park Lane and then the Dorchester. I then went on to Florida, in the USA, for one and a half years. I went to Belgium for two years, and then I arrived in Ireland.

 

What brought you to Cork?

To be honest, I was in London for six years, and I didn’t want to go back. I felt I did my time there. London was too hectic. You travel one and a half hours to go to work, and then another hour and a half to get home. It was always running, running. It is good to have better life balance. I chose to come to Ireland. Out of all the countries I have visited, Ireland took me the most time to settle in. I came to Cork in February, and it was very quiet. The week after I landed, it was snowing heavily – everything was shut down. I thought, What is happening?!

 

I came had come straight from Belgium, and everything was shut down, and there was no electricity in the place where I lived. This made me feel apprehensive, but, after three months, I knew I had made the best decision of my life. I felt very, very at home.

 

What first drew you to hospitality?

I don’t know. Now that I think back, all my childhood memories and all the movies I watched when I was a kid – everything was related to cooking. I remember being three or four years old, and it was all related to food and cooking. Now it makes sense that I am a chef because I have always enjoyed food, and memories around food have always lasted longer for me.

 

Once I became a professional chef, it gave me the feeling that I could put a smile on people’s faces and create memories for them. That gives me a great sense of pride and happiness.

 

What was your first big role? What was that like?

My first major role was my job as a commis chef. That was the most nerve-racking period of my career.

 

My first six months in the Metropolitan Hotel in Park Lane – I was so nervous, but, at the same time, I knew I had to do it. I have to succeed, and I have to give everything I have to learn everything I can.

 

For example, back home, we don’t have parsley. Every time I was told to bring parsley, I would bring coriander because they both look the same in the walk-in fridges. There were certain ingredients that I would never use back home. I had to learn what certain herb I could use for fish or meat. I put in a lot of work in the first six months of my career to learn as much as possible.

 

There were a lot of sleepless nights. It was the biggest role that I ever had. I had a very good team, who I could shadow. I had to give more, so that they would teach me more.

 

Tell us about the Blue Haven Collection and Rare restaurant – the ethos, food, service, etc.

In Blue Haven in Kinsale, we have three restaurants. There are three different restaurants and three different concepts under one roof.

 

Rare is a restaurant [to which] I bring my own heritage and values, in terms of food. I use many of the techniques that I learned in Europe with Irish produce and ingredients.

 

What makes a great restaurant?

It is a package, where you give a guest a wholesome experience, where everything clicks, not just the food.

A great restaurant is one that makes you feel at ease. It should not feel stiff or uncomfortable. It should be light-hearted, and you should feel [like] yourself. It should be a place to create memories, laugh, and have good food. That way, you will always come back.

 

What are the major challenges at the moment?

The VAT rate increase. Businesses are closing every day in this country. Staffing has also been a big issue for a long time.

 

For me, the whole food culture in Ireland offers so much. When I first arrived, I was impressed by the abundance of produce, such as great dairy, great meat. There is also great seafood, seasonal vegetables, and cheese. Everything is just here on our doorstep in every county and city. We hardly use any produce outside of Cork.

 

People need to appreciate more of what we have in this country. We send our shellfish to Spain and other European countries. People go to these countries and eat food there and rave about it, but sometimes we don’t know that it is shipped from West Cork!

 

Staffing issues, high costs and inflation are always there. It is part of being a business. There are good times and bad times. We need to educate people on how great the Irish food scene is, and the great producers that we have. If we support them, things will slowly change.

 

What are the main opportunities?

Ireland is filled with opportunities in terms of any food that you touch. There is always something that you can do with it. There is always something that you can do – fix something up and run with it.

 

For me, Ireland is the land of opportunity. There is so much potential here.

 

What do you like to do when you are not working?

I am actually expecting a child on St Patrick’s Weekend. What I am doing now and in four weeks won’t be relevant, you know! Photography is my hobby. I like cooking at home and going to other places to eat. In the last year, I have been visiting all the little cities and hidden gems across Ireland. That has been my recent hobby for the last six months.

The Irish Hotels Federation (IHF) has announced that Michael Magner has been elected as its 40th president, succeeding Denyse Campbell. The IHF is the national organisation of the hotel-and-guesthouse sector in Ireland, representing over 900 hotels and guesthouses nationwide, employing over 65,000 people across the sector.

 

‘Full Potential’

“As a Cork hotelier, I am all too aware of the impact tourism has right across our country, supporting over a quarter of a million livelihoods,” said Magner of his appointment. “Sixty-five thousand people are employed directly in hotels and guesthouses, all making an enormous contribution to villages, towns and cities the length and breadth of the country. It’s vitally important that we have the right conditions in place to live up to our full potential as Ireland’s leading indigenous industry.”

 

Background

Magner is a hotelier with 30 years’ experience. He has been an active member of the IHF since 2006 and served as chair of the Cork branch, a two-year term as national vice-president, and as a member of its National Council and Management Committee. Magner currently sits as chair of the Cobh Heritage Trust and a director of the board of Visit Cork.

 

‘Energy And Dynamism’

“The quality and calibre of people within this industry remain key to our success. From personal experience, it’s an industry with an energy and dynamism like no other, and one with so many opportunities,” said Magner.

 

“I want to ensure that we continue to nurture an environment that attracts and retains talent, and where people are supported to thrive and flourish.”

Andrea Burke, food-and-beverage team leader at the Sligo Park Hotel, has been named the 23/24 Irish Hotels Federation (IHF) National Employee of the Year. Members of the IHF nominated over 150 candidates who have consistently shown outstanding hospitality from their hotels/guesthouses to go forward for their regional IHF branch awards. Denyse Campbell, president of the IHF, presented Burke with her award at the IHF’s annual conference in the Slieve Russell Hotel, Cavan.

 

‘Unwavering Focus’

“I am pleased to present Andrea with her award for IHF National Employee of the Year,” said Campbell.

 

“Her remarkable dedication, tireless efforts and unwavering focus on delivering exceptional service to guests are truly commendable.”

 

Winner

Burke first joined the Sligo Park Hotel team as a food-and-beverage assistant in 2018. Her potential and career ambition were quickly realised, and the hotel funded her to pursue a Level 6 diploma in leadership and supervisory management at the Mayo, Sligo and Leitrim Education and Training Board.

 

This forged a pathway for promotion to team leader for the bar and restaurant in 2020, and Burke has continued to further her development, most recently undertaking a degree in bar management at Griffith College Dublin – a Level 7 qualification.

 

Rising Star Award

This year also saw the Rising Star Award presented to Hannah Pike, receptionist at the Shannon Springs Hotel, Limerick. Pike started her hospitality career in the Shannon Springs Hotel’s accommodation department in 2021, before moving to the restaurant and bar in the summer of 2022, and then to her current role in reception in early 2023. The judges commended Pike for her professionalism, maturity and adaptability when selecting her as the Rising Star winner.

 

‘Unwavering Dedication’

“We are all indebted to the remarkable teams of hotel and guesthouse employees nationwide, whose continuous efforts elevate guests’ experiences every day,” said Campbell.

 

“A special word of congratulations, also, to the 11 regional winners commended here this evening. It’s their passion and unwavering dedication that truly distinguishes our hotels as exceptional destinations, famous across the world.”

Dromoland Castle has announced the appointment of Gráinne O’Rourke as its marketing manager. In her new role at Dromoland Castle, O’Rourke will work closely with senior management and the marketing team on future projects.

 

‘Truly Exceptional Business’

“As someone who is born and bred in County Clare, I am so delighted to join the wonderful team at Dromoland Castle and the Inn at Dromoland, who are unbelievably passionate and dedicated about every aspect of hospitality. It permeates through every facet and department, and it is truly special to be part of that,” said O’Rourke.

 

“I look forward to bringing some new, exciting marketing initiatives to fruition, to further develop the experience of visiting Dromoland and working with key stakeholders in the region, to maintain the already strong positioning in the marketplace as a truly exceptional business and luxury property offering.”

 

Background

O’Rourke first became involved in the hospitality industry at 16, when her first job was at the Inn at Dromoland, Dromoland Castle’s sister property. She is a graduate of NUI Galway, with a Bachelor of Commerce degree and a major in marketing.

 

Marketing Roles

O’Rourke followed an early career path into retail sales before progressing into marketing roles within the retail and not-for-profit art sectors.

 

After spending seven years promoting Irish creative talent as special-projects manager for IFTA – the Irish Film & Television Academy – in Dublin, she moved back down to the West and took on the role of marketing and PR manager for Ireland’s largest regional shopping destination – the Crescent Shopping Centre, in Limerick – under the stewardship of Clancourt Management for a further seven years.

 

The role was multifaceted, working with up to 90 retailers and supporting their business strategies through marketing, PR initiatives, and events.

 

‘Fantastic Experience’

“We are delighted to welcome Gráinne to the team here at Dromoland Castle. She brings with her a wealth of marketing, event and communications experience and offers great insight to further develop the future plans for Dromoland Castle and Estate, in conjunction with our strong marketing and sales department,” said Mark Nolan, Dromoland Castle’s hotel director.

 

“We are confident her fantastic experience and interest in all things experiential and digital will further enhance our wonderful guest offerings across our estate.”