Last year was a difficult one for group hotels and one that exposed their greater vulnerability to world events than that of their independent counterparts. Many saw their occupancy levels decimated after the events of September 2001, as corporate business dried up overnight.
Thankfully, things picked up a bit during the second half of 2002, particularly in the major cities, but not before hoteliers and their marketing gurus had had to put their creative brains in overdrive to entice back business and create new customers. Many resorted to discounting in the process - a dangerous move, because going too low can mean losing market position for good. In the meantime, groups have had to continue to invest in both the product and their staff without necessarily seeing a quick return.
So what is the outlook for the next 12 months? 2003 is likely to be another challenging year, with continued uncertainty in the Middle East threatening to destabilise world economies. Further globalisation is possible, as the big players continue to swallow up the smaller ones (the top 15 hotel companies already have 24% of the world's total room supply, as against 15% 10 years ago); and the branding machine continues to steamroll ahead.
Closer to home, the sector is getting increasingly competitive as more companies increase their portfolios. In 2002, for example, Hotel du Vin, Alias Hotels, Luxury Family Hotels and Apex International all launched new properties.
The 2003 Group Hotel of the Year Catey is likely to go to a group that has read this jigsaw of market conditions and has developed a strategy to deal with them. The winner is likely to have continued to invest, both in staff and in the operation, despite difficult trading conditions. And they are likely to have built a sensible business mix from a variety of different areas.
Last year's winner of this award was the Hilton London Metropole. In the case of this hotel, size is indeed everything. It made its mark on the hotel scene after a £100m investment, a move the judges described as being both brave and astute and one that had brought business to this country.
Judges' criteria
The Group Hotel of the Year category is open to any group hotel of any size and at any market level that demonstrates:
* Excellence in its chosen market;
* Consistency of product and service;
* Success as a business; and
* Particular achievements in the past year.
This year's winner will be announced at the Catey Awards on Tuesday 1st July.
Previous Winners:
2002 Hilton London Metropole
2001 Hotel Du Vin Bristol
2000 The Berkeley Hotel, London
1999 Travel Inn, County Hall, London
1998 The Savoy, London
1997 Malmaison, Edinburgh
Sponsored by: JohnsonDiversey
Back