Tuesday, 1 April 2014

The Hotel Administration Cycle Just Keeps Turning

Another day, another set of "Akkeron" hotels go into administration. 

We just sit here and shake our heads saying "That's appalling" and then watch it happen all over again. Swallow Hotels, London and Edinburgh Inns, Akkeron Hotels - same hotels different contracts. A decade of wheeling and dealing? Who owns what? Who manages what? Who has freehold? Who has leasehold? Multiple limited company names. Into administration; out of administration. Who really cares?

And we all know it's not just Akkeron. There are hotels being shifted around on paper on a daily basis but what is the consequence for our industry. Is Scottish tourism going to be driven by property speculation and clever management contracts?

You know it may make great financial and economic sense for the property speculators and management companies but it does diddly squat for team building and personal development or for indeed quality of experience or the investment in the fabric of the buildings for the future good of the destination.

Where is the incentive in the management contract to invest?

I remember way back in the day when Grant Sword and Laurence Young were respectively in charge of their family chains; you knew that standards and reinvestment were absolutely key to their longevity and indeed their repeat business.

Hitting fifty must have made much more nostalgic but I'm sure we had a better tourism product when more hotels were in safe hands.

Let's hope that the future is in the nads of the independent Scottish hotelier. Pun partially intended.
Read about Akkeron's latest administration
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