Budget bonanza hits Edinburgh
By Gillian Drummond
Edinburgh yesterday became the latest UK city to offer its visitors an alternative to pricey hotels or low-price bed and breakfasts, with the opening of its first budget lodge property.
The Apex International Hotel in Grassmarket, close to Edinburgh Castle, is a £6m development with 99 bedrooms, offering accommodation at £49.95 a night. It also boasts what the owners claim is Scotland's first rooftop restaurant, the 76-seat Gallery.
Behind the project is Arrow Leisure, which already has pub interests in Edinburgh. Its target market is corporate and conference business Monday to Thursday, and leisure guests Friday to Sunday.
"We are trying to get customer loyalty. It will be the same rate whether they stay in January or during the Edinburgh Festival. Not everyone can afford the Balmorals and Caledonians of this world," said general manager John McLaughlin.
The Apex will face its first tough competition in June when Whitbread opens a Travel Inn in nearby Morrison Street. Its room rate is expected to be £35.50.
Other Edinburgh hoteliers said they welcomed the openings and assured Caterer that they would not be slashing prices to compete with the budget lodge market.
"It's important that destination cities like Edinburgh have a range of accommodation," said Stephen Carter, general manager of the Caledonian Hotel. He added that the demand for luxury hotels was still "very buoyant".
And Valentino Calabrese, general manager of the Holiday Inn Garden Court, said: "We welcome the competition, it's healthy."
Asked whether he would be cutting prices, Mr Calabrese said: "I don't think so. We believe our product is worth what we charge."
Anne Doig, travel press manager at Edinburgh and Lothians Tourist Board, said: "It's great news, we definitely need hotels at budget prices. I'm sure that the market is big enough without them having to fight for it."
She added that Edinburgh hoteliers were now doing good business all year round. Average occupancy last October, for example, was 81%, she said.
