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Old Jan 2, 2023 | 2:47 pm
  #341  
hugolover
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Join Date: Oct 2008
Posts: 11,592
Originally Posted by chrism20
Just a quick question on this part and I'd be interested to hear yours and others thoughts on it. Is it really just a case of Glasgow rates not recovering as fast or is market saturation also a big issue?

The number of rooms that have been added in Glasgow in recent years is incredible and there are still quite a few rooms to come online.

Glasgows rates remind me very much of when the oil industry slumped in Aberdeen and all the new hotels came online.
Yes, you're right. Lots of new rooms, all clamouring for the same market and fresh new hotels able to discount with a better product than the likes of the DT. Edinburgh is doing well because of tourism, I think the next few months will be interesting on what is normally a quiet time on that front.

Glasgow was never touristic like Edinburgh, so there was a lot of corporate and events business. That's still not back. You can see across the city its struggling a bit. Walk up Sauchiehall Street and there's a lot of closures. I noticed Diesel on Buchanan Street is gone and vacant. It used to be GLA was more of a shopping city, but does it really lose out compared to EDI?

London is its own world, "what pandemic?" is what I noticed there.

Is it even known if Hilton is to continue with Glasgow? Was the lease extended? Bear in mind that as per the management contract the hotel is returned to a good state before its handed back or its extended.

Post-pandemic its obvious to me that Hilton have no interest in management contracts. Franchising is the way forward.

Freetotravel makes a good point about the provinces. It wasn't pax guzzling down the £3 tanker that kept it afloat, but the corp business and NCL rates are super depressed. As Hilton neglect their hotels so badly by way of crappy management contracts they're in an even worse position to bounce back with a tired product.

It's similar with the airlines, with many C pax now being leisure, they actually expect a decent product (shock horror fact when its not OPM).
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