Keeping Control on Food Costs

Last week I took a walk though arable land and could not fail to notice that all wasn't well with the wheat crops. I suppose it is not surprising and I only have to look at my own garden and see the effects of the recent dry weather.

The impact for the hospitality sector is more food inflation. Not helped by the potential banning of grain exports from Russia, floods in Canada, India and Pakistan. And the poor cereal crops have a knock on effect on meat prices as well as bread and pasta, and there are predications of price increases on soya, palm oil and cocoa too.

So is it time to check on the basics on keeping control of food costs?

Rezidor Signs New Airport Hotel in England

The Rezidor Hotel Group has signed a new hotel in the England. The 216-room Radisson Blu Hotel, East Midlands Airport, is a new build property that is scheduled to open its doors in Q1 2012.

The Radisson Blu Hotel, East Midlands Airport will benefit from a prime location with excellent visibility – 800 meters away from the main terminal and along the M1, the country’s busiest motorway. Besides 208 rooms and 8 suites, all offering Radisson signature services such as free high speed internet access, the property will offer 1 restaurant, 1 bar/lounge, and 1 coffee shop. The hotel will also feature 750 square meters of conference and event-space while leisure facilities will comprise an extensive fitness centre with a gym and indoor pool.

"After the Radisson Blu and Park Inn hotels in Manchester, London Stansted, London Heathrow and Edinburgh, this project is our 5th airport hotel in the England. We continue to be Europe’s leading airport hotel operator – with now 32 properties in operation and under development and a total of more than 8000 rooms," said Kurt Ritter, President & CEO of Rezidor. "At the same time I’m delighted to announce this hotel as our 250th Radisson Blu; our continuously growing EMEA-portfolio now comprises more than 58000 rooms."

Parisian luxury hotels: From gloom to boom?

With record room prices of EURO 1,000 (USD 1,297) and occupancies of 95 percent, the luxury hotel sector in Paris is flourishing. But is the market ready to absorb a string of new openings forecast for the coming two years?

It's back in October 2006, when hotel news headlines in France announced that Parisian palaces—ultra-luxury hotels, such as Hôtel de Crillon and Hôtel Plaza Athénée—were going "full sail."

In those days, Paris’s six legendary luxury properties—Hôtel Le Bristol Paris, Hôtel de Crillon, Four Seasons Hotel George V Paris, Le Meurice, Hôtel Plaza Athénée and the Hôtel Paris Ritz—were notching up average occupancy of 77.5 percent, room prices of EURO 725 (USD 940) and 15 percent hikes in revenue per available room post 9/11, according to a study from French hotel industry consultants, MKG Consulting.

Ritz-Carlton Appoints Herve Humler as President & Chief Operations Officer

Ritz-Carlton has appointed Herve Humler as President and Chief Operations Officer.

Mr. Humler is one of the original founders of The Ritz-Carlton in 1983, he will be responsible for leading the brand’s operations and global growth strategy and championing its distinctive service culture. Based at The Ritz-Carlton headquarters in Chevy Chase, Maryland, he will also oversee Bvlgari Hotels & Resorts and report to Robert J. McCarthy, Marriott International Group President.

"Herve is a true international hotelier with more than 35 years in the luxury lodging business and has helped to build The Ritz-Carlton into a world-class brand," said McCarthy. "We feel most fortunate to have Herve in this position of increased responsibility where he can continue to provide his strong leadership to this iconic brand."

Hotel Industry Pulse Index: Business Expansion Probability 100 percent

HIP is a composite indicator which gauges business activity in the US hotel industry in real-time, similar to a gross domestic product measure for the industry. The latest monthly change brought the index to a reading of 89.9. The index was set to equal 100 in 2000. 

HIP's six-month growth rate, which historically has signaled turning points in US hotel business activity, continued to improve. After 20 months of the six-month growth rate being negative, the rate has gone up six consecutive months. In July, the six-month growth improved upon June's growth of 10.8 percent by gaining 17.5 percent. This compares with a long-term growth rate of 3.2 percent. It is useful to benchmark against the long-term growth rate of 3.2 percent because it is the same as the 38-year average annual growth rate of the industry's GDP.