(15/09/23) S Hotels and Resorts, the Thailand-based
hospitality investment and management company that is part of
Singha Estate PCL, has unveiled plans to renovate several hotels
in key cities across the UK, including the Mercure Manchester
Piccadilly Hotel, Mount Royal Hotel Edinburgh, and The Grand Hotel
Leicester, as well as extensive upgrades at another eight hotels.
The UK is S Hotels’ largest market,
accounting for 65% of the rooms in its global portfolio. The
company currently has 27 hotels comprising 2,940 keys nationwide,
operating under world known brands such as Mercure and Holiday
Inn, and situated in key business and leisure
destinations across the country.
S Hotels is maximising its UK assets with the
divestment of underperforming properties and the reinvestment of
funds – supplemented by additional investment of around GBP 16
million (approximately 712.2 million Thai Baht) – in the renovation of assets with
high potential. This strategy is expected to result in an occupancy rate of
more than 75% and a 10-15% increase in ADR for the properties.
Suite living room at the Mercure Manchester Piccadilly Hotel
In 2021, S Hotels purchased additional
50% stakes in 26 of its UK hotels, and the company recently
completed the head lease acquisition of the 76-key Mercure Perth
Hotel in Scotland, as part of its efficiency improvement strategy
in the UK.
The company has also disposed of three properties: Mercure
Newbury Elcot Park Hotel, Mercure Burton upon Trent Newton Park
Hotel, and Mercure London Watford Hotel.
S Hotels is now embarking on the latest
stage of its asset enhancement strategy in several key assets in
the UK. A major renovation has now commenced at 280-room Mercure Manchester
Piccadilly Hotel (pictured above) including upgrades to guest rooms, corridors and
the lobby area.
At the 169-key Royal Mount Edinburgh City, which commands
a prime location in the historic heart of Scotland’s capital city,
overlooking Edinburgh Castle, the renovation will encompass the
hotel’s guest rooms, lobby, corridors and façade, as well as
Scott’s restaurant on Princes Street.
The Grand Hotel Leicester is a 104-key property
which is set in a Grade II listed Victorian building,
located close to the Cultural Quarter in Leicester’s vibrant city centre. A renovation project will now be undertaken that
encompasses the hotel’s guest rooms and public areas.
S Hotels also recently completed the
leasehold acquisition of the 91-rooms Mercure Glasgow City Hotel
for GBP 7.5 million, which will help to unlock the hotel’s full
potential. This will be followed by a renovation of the rooms and
public areas in 2024.
In parallel with the upgrades being made to its
bricks & mortar assets, S Hotels has invested in the
improvement of the IT infrastructure of its UK portfolio, to optimise its guest experiences and drive operational and
commercial efficiencies.
“The UK is an important market for S Hotels & Resorts, so
we are excited to move ahead with this latest phase of our
portfolio enhancement strategy,” said Dirk De Cuyper, CEO of S
Hotels & Resorts. “The hotels we are renovating
command prime locations within key business and leisure
destinations. This makes them important assets and these
enhancement projects will help to maximise the hotels’ potential.
Moving forward, we will continue to optimise our portfolio and
take advantage of the rapid recovery of tourism and hospitality in
the UK, and around the world while boosting our revenues.”
At present, the group has 38 hotels and resorts
comprising 4,552 keys in five countries: Fiji, Maldives,
Mauritius, Thailand and the UK.
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