refurbishing hotels

improving delivery in the lead up to 2012

Damien Kenny – Vivid Interiors

is 2012 important to the hotel refurbishment market?

simple answer

probably not as much as some people think

is 2012 important to the hotel market in the UK?

Research in the last 5 years suggests a potential range of outcomes

Olympic games impact study – Price Waterhouse Coopers - July 2005

Summary of impact on tourism in 2012 of the Olympics- UK - £73m- London - £88m- Total £161m

European Tour Operators Association (ETOA) - June 2006A report released by the European Tour Operators Association (ETOA) indicates that countries who host the Olympic Games suffer from a drop in tourism growth in the years surrounding the event. Their projections being:-

- London 2009 - 15m international visitors

- London 2012 - 12.5m international visitors (projected)

is 2012 important to the hotel market in the UK?

House of Commons Culture Media & Sport Committee – Jan 07

Report - London 2012 Olympic Games & Paralympics Games funding & legacy

“We agrees that fears of overcrowding and high prices and poor accommodation will deter visitors from coming to London before and during the games.

To be successful, London must have sufficient capacity, acceptable prices and good quality accommodation to attached visitors during and after”

is 2012 important to the hotel market in the UK?

Department of Culture, Media & Support – winning - a tourism strategy for 2012 and beyond – May 2008

Values UK tourism as £85bn per annum employing 1.4m people

Their commitment to improving the service offer for the olympics

2010 - increase accreditation from 34% to 50% for rated hotels National Quality Assurance Scheme (NQAS)

- £1.6m fund allocated to support the programme

is 2012 important to the hotel market in the UK?

the impact of the Olympic games on tourism

Barcelona – The Legacy of the games 1992 to 2002 – Pere Duran

City Night stays per annum

Paris

Dublin

Rome

Berlin

Barcelona

London

31m

15m

14m

11m

8m

120m

current UK hotel refurbishment market

• most projects bid traditionally – no early contractor involvement

• invariably lowest price wins

• limited incentive for contractors to innovate

• high failure rate in project delivery– cost– budget

• poor market image

• adversarial contractual arrangements

how do we improve?