Baird/STR Hotel Stock Index Decreased In May, Notes STR

The Baird/STR Hotel Stock Index decreased by 5.8% in May, to a level of 5,584, and it decreased by 2.8% in the year to date, through the first five months of 2022, according to a statement published on the website of hotel industry market data company STR.

Statement By Baird’s Senior Hotel Research Analyst And Director
The statement published on STR.com included one from the senior hotel research analyst and director at Baird, Michael Bellisario, wherein he said, “Hotel stocks declined in May amid the broader stock market volatility as investors grew concerned about macroeconomic slowing and inflationary pressures, among other risks and uncertainties. Hotel fundamentals have continued to improve and are showing no signs of slowing; the demand recovery is broadening, the harder-hit urban markets are rebounding, and midweek business travel is coming back at a strong pace. Despite the positive fundamental momentum, investors remain a bit skeptical and are focused on the health of the consumer amid a slowing growth backdrop.”

Statement By STR’s President
The statement published on STR.com also included one from its president, Amanda Hite, wherein she said, “Despite macroeconomic uncertainty, consumer spending on travel and hotel rooms has continued. In-person graduation ceremonies drove May performance in many university-based markets, such as New York City, which reached an occupancy level of nearly 90% – its busiest week of the pandemic-era. Leisure markets continue to show strong performance levels, with room rate growth as the prominent bright spot for the industry. Our latest forecast, released early last week at NYU, upgraded the recovery timeline for nominal RevPAR. We expect both nominal ADR and RevPAR to surpass 2019 levels in 2022. Due to increases in new supply and slower corporate demand recovery, occupancy is not forecasted to reach 2019 levels until 2024.”

Additional Information
The Baird/STR Hotel Stock Index fell behind both the S&P 500 (flat) but surpassed the MSCI US REIT Index (-6.3%) in May, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index decreased by 6.0% from April, to 9,924, while the Hotel REIT sub-index decreased by 4.9%, to 1,288.

 

Original article by Dave Simpson on hospitalityireland.com

New Pilot Grant Scheme To Boost Night-Time Economy Launched

Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media Catherine Martin has launched a new pilot grant scheme to help boost the night time economy in Ireland, according to statement published on Gov.ie.

Details
The new Night-Time Economy Support Scheme (NTESS) provides funding of €2.6 million to pubs, nightclubs, cafés and other suitable licenced/unlicensed premises to support the provision of entertainment during off-peak times, according to the statement published on Gov.ie, which also noted that the aim is to promote an increase in footfall in Ireland’s cities, towns and villages as well as providing artists with paying gigs and customers with a more alternative, diverse and inclusive night-time offering, and that this initiative is in support of two recommendations in the Report of the Night-Time Economy Taskforce.

Statements By Minister Martin
The statement published on Gov.ie included a statement from Minister Martin that said, “I want to support and develop a thriving environment at night in our cities and rural towns. This scheme aims to attract people in to our towns and cities later in the evening and night time by offering a range of cultural activities, in a variety of venues. It will also support businesses in trialling events during the earlier part of the week when it’s typically quieter with a view to developing a more long-term sustainable offering in the night-time economy.”

Minister Martin continued, “I have also listened to the sector in relation to the lack of venues for artists and performers, especially new and emerging acts. This scheme will aim to provide those opportunities for new acts, by supporting the smaller venues such as pubs and cafés to trial out new cultural activities and provide those much needed spaces and paying gigs to artists.”

Additional Information
According to the statement published on Gov.ie, the guidelines for the new scheme are available at Gov.ie/en/publication/34e09-the-night-time-economy-support-scheme-ntess-2022-guidelines/, and applications for the new scheme can be made at NTESS.tcagsm.gov.ie/.

 

Original article by Dave Simpson on hospitalityireland.com

Three Irish Food Venues Hit The Market

Three Irish food venues have hit the market.

 

Properties
As listed on Daft.ie, the leasehold interest of a restaurant opportunity in Clontarf, Dublin 3, is being sold via Dooley Auctioneers.

The leasehold interest of coffee shop/food outlet in Airside, Swords, Swords, Co. Dublin, is being sold via Redmond Property.

Lily’s of Church Street, Wicklow Town, Co. Wicklow, is being sold via REA Forkin for €425,000.

 

Additional Information
All of the above information comes from property listings on Daft.ie.

 

Original article by Dave Simpson on hospitalityireland.com

New Glamping Accommodation Opens In Co. Wexford

Glamping company Further Space has announced that it has opened a new glamping site in Co. Wexford.

Details
Six glamping pods have been installed on Forth Mountain.

Further Space, which currently has eight luxury glamping sites across Northern Ireland and Scotland, works in partnership with landowners on sustainable diversification projects. The micro-tourism company hand-picked the mountainside location, which is Further Space’s first site in the Republic of Ireland.

The Wexford launch comes as the Northern Ireland company prepares to announce a series of openings throughout the Republic of Ireland and Scotland over the coming year.

Statements By Landowner
Landowner James O’Connor, who owns Forth Mountain Stud, said that he is delighted to be welcoming guests to a part of Co. Wexford that means so much to him.

O’Connor stated, “Little did I know 30 years ago while admiring the views with my uncle Luke that I would be now able to welcome people to Forth Mountain with the help of Further Space.”

Statement By Further Space Co-Founder
Further Space co-founder David Maxwell stated, “We are delighted to be working with James for our first location in Wexford, and indeed for the Republic of Ireland. We go to great lengths to locate our Further Space pods in unique places which encourage people to reconnect with nature while creating greater health and wellbeing for our explorers.

“We pride ourselves on delivering ‘more than’ experiences at all of our Further Space sites and when our explorers choose to stay with us, they are also supporting the development of the local environment and community. Our spaces preserve cultural and natural heritage in rural areas supporting sustainable micro-tourism and promoting the welfare of the local community.

“We are excited to be working with James in a part of the world which obviously means so much to him.

“When you stand outside the pods looking across to Blackstairs Mountain and Mount Leinster, you realise there are few places more peaceful or beautiful while just a short distance away is Wexford town. We know guests will really enjoy their stays on Forth Mountain.”

 

Original article by Dave Simpson on hospitalityireland.com

Dalata Publishes Trading Update For Second Quarter Of 2022

Dalata Hotel Group plc has published a trading update for the second quarter of 2022.

Details
According to the trading update, which was published on DalataHotelGroup.com/investors/latest-financial-news, Dalata announced in April that its revenue per available room (RevPAR) was 9% ahead of 2019 levels for the March/April period, and its RevPAR is expected to be 18% ahead of 2019 levels for the May/June period.

RevPAR in Dublin for the May/June period is expected to be 18% ahead of the same period in 2019, while RevPar in the UK and regional Ireland for the May/June period is expected to be 7% and 27% ahead of 2019 levels, respectively.

Dalata is expecting adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to be in excess of €81 million for the six month period that ends on 30 June 2022.

Dalata also said that it is pleased to announce the completion of the sale of the Clayton Crown Hotel, London to a company that is controlled by AG Hotels Group for a cash consideration of approximately £21 million, and that it expects to conclude the sale of the Merrion Road residential units to Irish Residential Properties REIT plc for €42 million in the coming weeks.

Statement By Dalata CEO
The statement published on DalataHotelGroup.com/investors/latest-financial-news included a statement from Dalata CEO Dermot Crowley that said, “I am very pleased with the manner in which demand has recovered across our markets since COVID restrictions were lifted earlier in the year. Our teams in our hotels and central office have responded incredibly well to the swift recovery. Our focus on the development of our people and our strategy of keeping our core teams in place throughout the pandemic is underpinning our ability to fully operate our hotels despite the backdrop of a tight labour market. Our new hotels in Manchester, Bristol, Dusseldorf and Dublin are also trading very well and we look forward with confidence to the opening of the Clayton Hotel Glasgow City and Maldron Hotel Merrion Road in Dublin in the coming months, adding much needed additional supply to the market.

“I recognise concerns about rising hotel prices in Ireland. Our average room rate in Dublin for the second quarter of 2022 was €160. This is an increase of 20% over 2019 (on a like-for-like basis). Dublin’s highly competitive market is experiencing a period of exceptional pent-up post-pandemic demand at a time when supply is temporarily reduced as a direct consequence of the war in Ukraine. In June, our Dublin hotels are expected to reach an occupancy of 93%. Despite widespread cost inflation, we continue to honour longstanding agreed prices, including those in place for over 160,000 coach tour guests we are welcoming over this summer.

“We will continue to assist the Irish government in its response to the crisis created by the war in Ukraine by making 5% of our rooms in the Republic of Ireland available to the Department of Children, Equality, Disability, Integration and Youth for the remainder of this year at the rates requested.

“We look forward to the balance of the year with confidence whilst being aware of the potential threats caused by the general economic outlook. We are excited by the potential of our recently opened hotels and by those in the pipeline. We have strong teams in place and we will be agile and innovative in responding to any challenges that may emerge.”

 

Original article by Dave Simpson on hospitalityireland.com

No Experience, No Resume, You’re Hired! Hotels Fight For Staff

Top European hotel chains are hiring workers without experience or even a resume as executives admit years of underpaying staff have come back to bite, leaving them unable to meet post-pandemic travel demand.

Details
Thousands of workers left the hospitality industry when international travel shut down during the COVID-19 pandemic. Many chose not to return, finding better paid employment elsewhere, leaving hoteliers facing a desperate shortage.

Europe’s largest hotelier Accor ACCP.PA is running trial initiatives to recruit people who haven’t previously worked in the industry, chief executive Sebastien Bazin said in an interview with Reuters at the Qatar Economic Forum last month.

Accor, which operates brands like Mercure, ibis and Fairmont in over 110 countries, needs 35,000 workers globally, he said.

“We tried in Lyon and Bordeaux ten days ago and this weekend we’re having people interviewed with no resume, no prior job experience and they are hired within 24 hours,” Bazin said.

In the short term, Accor is filling roles in France with young people and migrants while also limiting services.

“It’s students, people coming from North Africa,” Bazin said. “And basically closing restaurants for lunch or (opening them) only five days a week. There’s no other solution.”

The new recruits are given six hours of training and learn on the job, he said.

Staff shortages are particularly pressing in Spain and Portugal, where tourism accounted for 13% and 15% of economic output respectively before the pandemic.

Hoteliers there are offering higher pay, free accommodation and perks like bonuses and health insurance.

“Many employees have decided to move to other sectors, so we are starting an industry from scratch and we have to fight for talent,” Gabriel Escarrer, CEO of Spanish hotelier Melia, MEL.MC told reporters in Madrid.

To attract staff, his company recently provided accommodation, sometimes in hotel rooms, due to a shortage of rental housing near its resorts.

Smaller hoteliers face similar staffing challenges.

The operations director of Hotel Mundial, one of Lisbon’s most iconic hotels, said it was currently trying to recruit 59 workers. Without enough staff, he fears some hotels will cut guest numbers and the range of amenities they can provide.

“If we cannot recruit, we will have to cut services,” he said. “This is regrettable and dramatic for an industry that has had no revenue for the last two years.”

“We’ve Been Blind”
Across Spain and Portugal, two of Europe’s top tourism destinations, the scenario is echoed in bars, restaurants, and hotels – the bookings they have longed for but at a cost they are struggling to meet.

Jose Carlos Sacó, 52, can only open his Madrid bar, Tabanco de Jerez, during the weekend when students in need of extra cash have no classes and are available to work.

“During the week we can’t open because we have no hands, they are studying,” he said, gesturing to his student workforce setting up tables on a Saturday.

At Madrid’s vibey La Latina district, the Angosta Tavern owner, Mariveni Rodriguez, hired migrants for the high season.

“We give the opportunity to migrants who come with a desire to work as they have no family or institutional support,” she said.

Spain’s catering industry is 200,000 workers short and Portuguese hotels need at least 15,000 more people to meet growing demand, according to national hospitality associations.

“The solution will surely be to pay more,” said Jose Luis Yzuel, from the catering services sector association.

Attempts are being made to lure workers back. In Spain, bars and restaurants increased workers’ wages by nearly 60% in the first quarter compared to a year earlier, according to official data. But the tourism industry is still the sector that pays employees the least, around 1,150 euros ($1,200) per month.

In neighbouring Portugal, salaries for hospitality workers are expected to increase 7% this year, according to a survey by the central bank and the National Institute of Statistics, but the average wage in the sector is 881 euros per month, above the minimum wage of 705 euros.

Bazin said that while hotels are only 60% or 70% occupied they can cope with staff shortages, but the crunch time will come when they’re fully booked.

“The problem I have is, when I know between early July to end of August we’ll be 100% occupied, can I service all the people?” he said.

In the past, the industry has neither paid enough or focused on developing staff, Bazin said.

“Half of it is we’ve been blind, we’ve been not paying attention to a lot of people and probably underpaying some people for too long as well,” he said. “So it’s a wake up call.”

Original article by Reuters and edited by Hospitality Ireland

Glendalough Distillery Announces Win At San Francisco World Spirits Competition

Glendalough Distillery has announced a Double Gold award win at the San Francisco World Spirits Competition for its seven year old Irish single malt aged in Japanese Mizunara casks sourced from the island of Hokkaido, Japan.

Details

The judging panel of the San Francisco World Spirits Competition remarked on the aromatics and the tasting notes of straw, fruit, honey and vanilla on the palate.
The Double Gold is only awarded to entries that receive a gold medal rating by all members of the judging panel.

 

Statement By VP, Spirits Mark Anthony Brands International

Enda O’Sullivan, VP, Spirits, Mark Anthony Brands International, stated, “This award is testimony to the drive and ambition of the Glendalough team who strive for the very best in all they do. Sourcing the best oak on earth in no mean feat but while the journey was arduous, we knew that the final destination would be glorious. This triple distilled, double gold-winning, single malt is a triumph for Irish whiskey and we look forward to extending the range in the years to come. They say what’s rare is beautiful. Mizunara aged single malt is both.”

 

Original article by Dave Simpson on hospitalityireland.com

Cliste Hospitality And SSE Airtricity Enter Into 100% Green Gas Partnership

SSE Airtricity has announced that it has signed a three-year partnership with Cliste Hospitality to provide energy solutions through its 100% green gas supplies.

Details

The partnership between SSE Airtricity and Cliste Hospitality includes five hotel properties – Radisson Blu Hotels in Cork, Limerick and Athlone, the Kilkenny Hibernian Hotel, and the Tullamore Court Hotel – that will receive green gas from 2023 and will be supplied with a total of 36.8GWh of energy. It is expected that this partnership will lead to a reduction of 7,532 tonnes of CO2 per annum for the five Cliste Hospitality properties, which will support the hospitality groups green ambitions.

Statement By SSE Airtricity Managing Director

Klair Neenan, managing director of SSE Airtricity stated, “SSE Airtricity is delighted to partner with Cliste Hospitality and assist with the target of net zero emissions. It is great to work with an organisation that shares in our values and is looking for new ways of reducing emissions. Through our bespoke energy solutions, we are proud to help Cliste take another important step on the road to net zero by significantly reducing their carbon footprint. For over a decade SSE Airtricity has been a leader in driving Ireland’s green energy revolution with many great partners across the country and we are delighted to add Cliste Hospitality to that list.”

Statement By SSE Airtricity Director Of Sales

Russell Keating, director of sales for SSE Airtricity, stated, “SSE Airtricity has a long history of providing green solutions for customers and businesses and it is a key milestone for the company to provide green gas to a prestigious hospitality group. Cliste Hospitality are thought leaders in their approach to becoming more sustainable and this agreement demonstrates the groups commitment to be greener and we are delighted to enable this change. We look forward to working closely with Cliste Hospitality in the delivery of 100% green gas supplies.”

Statement By Cliste Hospitality Director Of Operations

Chris Austin, group director of operations with Cliste Hospitality, stated, “We are delighted to partner with SSE Airtricity and their 100% green gas supply platform. This partnership is closely aligned with our carbon reduction management strategy and our commitment to continued carbon reduction strategies across our group. We are firmly committed to playing our part in creating a more sustainable present, and future, in everything that we do, and we look forward to working with SSE Airtricity to achieve our company goals in these areas.”

 

Original article by Dave Simpson on hospitalityireland.com

Galway Restaurant Aniar Celebrates A Decade Of Business

Michelin-starred restaurant Aniar of 53 Lower Dominick Street, Galway, which is part of the EATGalway restaurant group owned and operated by JP McMahon and Drigin Gaffey, is celebrating 10 years of being in business.

Statement By JP McMahon

Aniar, the Irish word for west, is led by chef-patron JP McMahon, who said, “I would like to thank the amazing chefs, floor managers and staff past and present who have contributed to Aniar’s success to date – we wouldn’t be here without you. I look forward to leading our team into the next chapter and our bid to achieve a second Michelin Star.”

 

Statement By Drigin Gaffey

Aniar co-owner Drigin Gaffey stated, “We opened Aniar with big ambitions and zero finance. JP, alongside chef Enda McEvoy, wanted to bring a new culinary vision to Ireland. Scraping together the pennies in those early days we pushed forward and achieved the first Michelin star in Galway city just fourteen months after opening. While Enda left shortly after to open his own place, together JP and I took Aniar through the highs and the lows, keeping the integrity and quality of the Aniar experience at the core. I am very proud of what we have achieved at Aniar. I would also like to take this opportunity to congratulate Jp on what he has personally achieved over the years with Food on the Edge, speaking at international symposia and The Irish Cookbook.”

 

Original article by Dave Simpson on hospitalityireland.com

Bar Sales Volumes Increased Year-On-Year In March

According to the Retail Sales Index March 2022 (Provisional) February 2022 (Final) report from the Central Statistics Office (CSO), the volume of sales in bars decreased month-on-month but increased year-on-year in March of 2022.

Details

The report, which was published on the CSO’s website, states that the volume of sales in bars decreased by 19.6% in March of 2022 from February of 2022, and that there was a 611% year-on-year volume of sales increase in bars in the third month of this year.

While the volume of bar sales increased year-on-year in March of this year, it was 40.4% less than the volume of sales recorded for pre-COVID-19 pandemic February of 2020, according to the CSO.

Food, Beverage & Tobacco (Specialised Stores) Sales

Meanwhile, the volume of food, beverages & tobacco (specialised stores) sales decreased by 10.3% in March of 2022 from February of 2022, and by 13.4% year-on-year, according to the CSO’s data.

 

Original article by Dave Simpson on hospitalityireland.com

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