Derry go round
Garvan O'Doherty is only 40, but he's already a part of Londonderry's folklore. In the stories told about him he does, apparently, own half the city - the second largest in Northern Ireland - and is as handsome as he is rich.
Sitting in the marble-encrusted reception area of his new £3m hotel and bar, Quality Hotel Da Vinci's, O'Doherty laughs at the suggestion that he has acquired half of the city and says he wishes it were true. As for the "handsome" description? "No comment," he says, shaking the mop of grey hair which gives him a distinguished, high-flying businessman-like appearance. Then he throws a let's-get-back-to-business look.
There is a lot of business to talk about. While O'Doherty doesn't quite own half of Londonderry, he does own nine out of the north side of the city's 80 pubs and the only two hotels near the city centre. These include some of Londonderry's most prominent entertainment venues. The pubs are the Carriag, Da Vinci's (the new hotel was built next to the existing pub), McGinley's, Sandino's, the Townsman, Peadar O'Donnell's, the Gweedore, Shantallow House and the Collon Bar. There is one nightclub, Squires - attached to the Townsman - the 40-bedroom Trinity hotel and the new Quality Hotel Da Vinci's.
Together they form the Garvan O'Doherty Group. The pubs are not a chain. Each has its own distinctive image, and the group is a blend of working- and middle-class establishments. "We couldn't supply a similar type of product," O'Doherty says. He is proud to add that his group, which began 15 years ago after he wound down his father's publican interests and started to invest his own money in his own ventures, is "involved in every sector of Derry life". However, O'Doherty admits that having so many different pubs - they range from working men's and community pubs to trendy wine bars - has posed problems. "We have tried not to be too varied because they can attract competition quickly. In time we are going to have less but make it far better," he adds.
But he is quick to add that having a diverse range of establishments merely reflects what is happening across Britain. "In terms of UK trade, we would reflect the same concepts and themes in having café-bars and big nightclubs," says O'Doherty, whose first foray into the hospitality scene was via the Love Bug disco.
Being aware of what his counterparts in Britain are doing is crucial to O'Doherty. He mentions that he frequently looks at trade magazines as well as making trips across the water to see ideas in action. "We try to look at what's out there, and we do borrow ideas from others, although we have to be careful not to go over the top."
While pubs are in his blood, O'Doherty says it was a natural progression to move into hotels. And certainly the four-storey Quality Hotel Da Vinci's, which admitted its first guest in May this year, could easily compete with any equivalent London establishment. The 70-bedroom hotel was opened in partnership with the US-based Choice Hotels group and sports minimalist design with maximum taste and cheap prices. The average rack rate is £50, plus £5 for breakfast. O'Doherty says the hotel is doing better than expected - occupancy for July was 68% - with estimated turnover for the year put at £3m.
As well as being attached to Da Vinci's pub, the hotel also boasts a new 150-seat bar called Spirit. Although it has a selection of beers, the bar will also have a good list of wines and Champagnes to appeal to the largest number of customers, including businessmen.
The £3m investment so far in the Quality Hotel Da Vinci's precedes a £2m development on the land beside the hotel, which currently houses a coal depot. "I want to spend another £2m on this site, which will include a conference centre," says O'Doherty. "It's going to be absolute cutting-edge hospitality, which will include the developing of food, drink and entertainment." The project, known as phase two, should be opened by November, and along with the purpose-built conference centre, it will have banqueting facilities and will be able to accommodate 300 delegates.
Da Vinci's was O'Doherty's second major hotel investment in Londonderry. Four years ago he opened the Trinity hotel, a modern city centre building with a 200-seat bar, 90-seat restaurant and 40-seat brasserie.
It is no coincidence that the opening came just after the 1995 and 1998 ceasefires and the Good Friday agreement. The coming of peace to Ulster signalled the start of O'Doherty's mini-building and development boom - as Da Vinci's illustrates. He says: "I originally bought the pub in 1991 but was waiting for the right time to develop it, and that came with the stability brought about by peace."
Like a lot of Northern Ireland's businessmen, O'Doherty has firm opinions about Ulster's political situation and how it affects his business. He talks with the authority of a man who has been developing his group in a climate where a bar can be wiped out in seconds with a 500lb bomb.
"For too long politics has dominated [issues here]. What we really need is for it to be put in its right place - eighth down the line in terms of priority - so we can get on with everything else."
Of course, with the situation in Ulster now dramatically improved, O'Doherty, like his business compatriots, is keen that tourists should be encouraged to come to the city. And within the auspices of the city's chamber of commerce they are working together to make that happen. At the moment only about 1.6% of Ulster's gross domestic product comes from tourism, but O'Doherty believes there is only one way for this figure to go, and that is up.
This may mean O'Doherty facing some challenges to his position as king of Londonderry's pub/hotel businesses. He is the first to admit that because of the previous unstable political situation there was very little competition. "We probably did have 10 years on our own," he admits.
That, however, has all changed. Other people are buying into the city. But while peace has brought business growth, it has also led to a growth in property prices. As mercenary as it may sound, O'Doherty knew that his best business tactic was to buy pubs while the Troubles still had their grip on Northern Ireland. He says: "Obviously, at the time, property was low; but now you are looking at a 500% increase for buying the building and developing the product. But the problem is that the market and returns haven't increased by 500%."
But O'Doherty is striving to bring establishments to the city that will help to build the market and raise the returns. Leaning back in one of the leather chairs that adorn Quality Hotel Da Vinci's reception area, he exudes complete confidence in what he is trying to achieve in the city. It is also clear that he is excited by the challenges ahead.
"These are fascinating times in the industry. The pace of change has accelerated, and customer preferences are seriously affected by worldwide communication, and the standards that they want have risen.
"But I am very positive about the future. It's a serious business with very big stakes." And, as always, O'Doherty intends to be at the forefront of it.
Facts
The Garvan O'Doherty Group
7 Northland Road, Londonderry BT48 7HY
Tel: 01504 266676
Average spend across the group, including food and drink: ranges from £4 to £40
Total number of staff in group: 300
Estimated annual turnover for Quality Hotel Da Vinci's: £3m
