Richard Branson’s Virgin Hotels to open first London hotel in Shoreditch
Virgin Hotels, the luxury lifestyle hospitality brand owned by Sir Richard Branson’s Virgin Group, has announced its first London hotel will open this August in Shoreditch.
London will be the eighth Virgin Hotels opened by the business magnate, having just announced a new property in Kenya and the launches of Virgin Hotels Edinburgh and Virgin Hotels New York in 2023.
The 120-bedroom hotel will be located at 45 Curtain Road in the heart of Shoreditch.
Sir Richard Branson, founder of the Virgin Group, commented: “We’re all absolutely delighted that Virgin Hotels Collection will be opening a Virgin hotel in London.
“Since the inception of Virgin Hotels, we’ve had our sights set on London; a place that so many of our customers either call home, or name as one of their favourite destinations – and of course where Virgin’s story started.”
“At Virgin, we’ve been disrupting the travel industry for more than 40 years, from land to air to sea – even to space. Our success comes from identifying where we can make a difference.
He added: “Virgin Atlantic customers have always said to me that we give them a wonderful experience in the sky, but they don’t have the same Virgin experience when they land. Well, we’ve sorted that in Las Vegas, New York, Edinburgh and now London too.”
The hotel will form part of a long-term agreement between Virgin Hotels and real estate investment and development group Reuben Brothers.
Go ahead given for new nine-storey hotel in London’s Square Mile
Plans to build a new hotel between the Museum of London and the Barbican have been given the green light.
The buildings at 1-8 Long Lane will be combined and developed into a single, nine-storey hotel with 128 rooms, including a 10 per cent provision for disabled access.
It comes as figures by the Greater London Authority’s London Plan found an additional 58,000 bedrooms of serviced accommodation will be needed across the capital by 2041.
The need for visitor accommodation has been reinforced by the City of London Visitor Accommodation Sector Commercial Needs Study, dated January 2023, which identified a demand capacity for an additional 350 rooms per annum in the City of London to 2037.
Shravan Joshi, chairman of the City of London Corporation’s Planning and Transportation Committee, said: “This new hotel will deliver much needed accommodation for visitors to the City, as it continues its transformation into a seven day and evening destination.
“Its location at Long Lane is ideally suited to this vibrant area.”
He added: “The Square Mile has a unique history and culture, which naturally attracts global audiences.
“Hotel development is therefore key in supporting the business and cultural attraction of the City, especially as it complements our business function and potential for future economic growth.”
The development will join a number of other retail and hospitality developments that have been approved in the City over the past few months.
Earlier this week, a plan to add three storeys and a roof garden to the former London HQ of Deutsche Bank were also given the green light by the City of London Corporation.
The scheme, developed by London-based architects Orms will increase capacity at 75 London Wall by 40 per cent to 688,000 sq ft.
Real investors Gamuda Berhad and Castleforge Partners will be joint partners for the redevelopment, which is set to be completed in the third quarter of 2027.
Midscale London hotels outperform cheaper rivals as back-to-the-office drives weekday bookings
Midscale hotels are currently on top of the accommodation food chain in London, new data has found, as revenue available per room across the semi-affordable chains has risen seven per cent over the year to April.
The figures, published by CoStar and shared exclusively with City A.M., found demand was driven by customers looking for a room at a midscale hotel during the middle of the week.
Since the reopening of offices following the pandemic, commuters have been returning to the capital for business meetings and social events.
CoStar said revenue improvements have been occupancy-driven, “offsetting any losses in pricing”.
“Reductions in room supply have supported occupancy growth as demand softened in recent months, limiting revenue loss to some extent,” the firm said.
The health of the midscale market contrasts trends spotted in the more budget side of London’s hotel market.
At economy chains, revenue available per room was down seven per cent in the year to April. CoStar blamed increased supply compounded with softer demand patterns that may be affecting these hotels.
“From a consumer perspective, price sensitivity may also have influenced rate growth in recent months, with weekend pricing experiencing a seven per cent decline year over year, indicative of the leisure segment’s performance,” the firm said.
Cristina Balekjian, director of UK Hospitality analytics, said: “Overall, London hotel performance is expected to experience stable growth, which could impact hoteliers’ ability to drive profitability.
“The summer months are expected to be more robust, however. As of the end of May, occupancy on the books is trending about two percentage points ahead of last year’s performance, while market participants are also reporting stronger trading for the summer months, as events across the capital and the ongoing recovery of the international market support demand into London hotels.”
She added: “Nonetheless, some challenges are likely to remain. Pricing could be challenged, especially in areas and classes with greater additions to supply, while a more price-conscious and value-driven customer base could make competition tougher.”
Norcros shares rise as bathroom supplier shows signs of resilience amid DIY slump
Shares in Norcros rose slightly this morning after the bathroom and kitchen supplier showed signs of resilient trade amid a slowdown in the home improvement market.
Analysts at Shore Capital slapped a ‘Buy’ rating on the stock after the London-listed firm revealed a slightly better-than-expected profit for the period.
Operating profit came in at £39.9m in the year ending March, up 45 per cent on last year.
However, revenue slipped 11 per cent to £392.1m as the company was impacted significantly by market conditions, including power interruptions in the first half of South Africa.
Meanwhile, in the UK and Ireland, the firm recorded an underlying profit of £38.4m, up over £1m on last year’s figure.
Thomas Willcocks, chief, said: “I am delighted with the performance over this period and excited by the significant opportunities that remain in the more resilient mid-premium market segments that we hold leading positions in.
“Our strategy is building from a position of strength and scale as we actively leverage the customer and operational synergies within the group.”
The firm held its guidance for the year.
Shares in Norcos have jumped 13 per cent year-to-date despite the very public challenges faced by home retailers as shoppers are feeling the pinch.
Analysts at Shore Capital, said: “Norcros’s UK businesses showed resilience with LFL sales down 3.3 per cent , which we believe is a better outturn than the majority of listed peers and the overall market, due to its positioning in the more resilient mid premium segment of the RMI market.”
David Beckham-backed Guild gains entry into Esports World Cup Club
Guild Esports, a gaming company co-owned by David Beckham, has confirmed its entry into a number of competitive gaming competitions.
This morning, Guild Esports said its ‘Serenity’ team had gained re-entry into Apex Legends, a first-person, online multiplayer game published by Electronic Arts and developed by Respawn Entertainment.
The team also recently qualified for the Esports World Cup and will represent the company at the tournament, competing for a share of the $2m (£1.5m) prize pool.
Beckham-backed Guild previously competed in Apex Legends between October 2021 and June 2022 and has returned to the esport for the EWC.
Alongside Apex, Guild said it has qualified for the Esports World Cup in ESL R1, a high-profile sim racing competition.
Each esports team must qualify for the EWC in at least two games to be eligible for the Club Championship, and as such Guild has now met the requirement for entry.
“Apex Legends is the perfect game to secure our entry into the Club Championship. Our talent scouts have long been on the lookout for the perfect team to bring us back to the esport.
He added: “We’ll be cheering them on as they take the Esports World Cup by storm – we can’t wait to see what they can do.” Guild is a global gaming-focused media business that fields professional players in gaming competitions under the Guild banner.”
Crest Nicholson: House builder’s profit craters 71 per cent ahead of new chief’s arrival
Shares in house builder Crest Nicholson have fallen by 11 per cent after the firm forecast earnings would fall by one third amid challenges in the property sector.
The board of the FTSE 250 firm said operating profit slid 71.9 per cent on last year to £6.2m, while revenue over the six months to April was down 8.9 per cent to £257m.
Crest Nicholson said it was still feeling the pinch from a tough market, with volatile mortgage rates and low consumer confidence having eaten into property builders’ bottom line in the last 18 months.
Over the period, Crest completed the build of 788 new homes, slightly below last year’s reading of 894.
Back in March, Crest said it is likely to build 11 per cent fewer homes in the financial year 2024.
Today’s results come just one day before Martyn Clark’s arrival as the new chief executive officer.
He replaces Peter Truscott, who has been the boss since 2019 and during his time in charge reshaped Crest Nicholson’s strategy and oversaw an efficiency drive.
Truscott said: “We have made some important operational progress in the first half of the year against our strategic priorities.”
“We are on track to achieve a five-star customer service rating, have a clear and comprehensive plan to resolve the legacy and operational issues, and continue to focus on maintaining a strong balance sheet.
“The group is continuing to focus on completing its low margin sites, with FY23 and FY24 being the peak years of impact and the majority of the remainder expected to be traded through during FY25.”
Can St Jude (Bellingham) save this lost cause? Tories hope for Euro 2024 success
RISHI Sunak and Tory candidates across England will be praying for a national morale boost when England play Serbia in the opening match of their Euro 2024 campaign this weekend.
The Prime Minister sits around 20 points back in most polls but some in his party believe a few England wins could put the country in a better mood – and perhaps a more forgiving one.
Sam Holland, the Tory candidate in Dagenham and Rainham, told City A.M. that “if people feel we’re winning and doing well, it creates a sense of euphoria – and that might start to have an impact on the campaign.”
Evidence however is mixed that football results affect elections. Some in the Labour party blamed Harold Wilson’s defeat in 1970 on England’s catastrophic World Cup defeat to West Germany, complete with a series of howlers from goalkeeper Peter Bonetti, a few days beforehand.
Though Wilson pooh-poohed the idea, one minister wrote that “the moment Bonetti made his third and final hash of it on Sunday, everything simultaneous began to go wrong for Labour for the following Thursday.”
Philip Cowley, Professor of Politics at Queen Mary University of London, told City A.M. that the evidence is “very mixed” and while “it seems possible there was a late swing against Labour there were lots of other potential causes.”
In Euro 2024, England will play Serbia, Denmark and Slovenia before the election, as well as second round match if we get that far. A quarter final would be played just a day or two after the July 4 poll.
“If presumably, the hope is for a feel good factor to kick in and propel them to victory, we have to factor in that the election takes place before the quarter finals have taken place. England or Scotland are going to have performed quite spectacularly well in any group or Round of 16 games for there to be any sort of feel good factor,” Cowley continued.
Another Tory candidate, channeling his inner football pundit, told City A.M. that “the manager’s career hangs in the balance” when asked about Rishi Sunak – and under pressure England boss Gareth Southgate.
“The next few weeks are going to be vital as we build some momentum and convince the fans to stick with the long term plan that is working,” they said.
Labour will hope to avoid too many own goals as the party releases its manifesto later today.
Confidence in UK property market starts to dip ahead of election
Confidence in the UK housing market is starting to dip despite signs of improvements in recent months, according to the latest property surveyor report from the Royal Institution of Chartered Surveyors (RICS).
A net balance of eight per cent of property professionals saw home buyer demand falling rather than rising in May, marking the weakest reading since November 2023.
Buyer demand was weakest in the South East and South West of England, the report said.
Respondents to the survey also reported a fall in the number of sales agreed during May, although it is expected that sales volumes will rise modestly over the coming three months.
Despite this, the outlook for the next twelve months remains relatively upbeat, with 43 per cent of survey participants anticipating an uplift in sales activity, rising from 33 per cent in April.
Justin Young, chief executive of RICS, said: “Despite an improving overall outlook, today’s data reveals that confidence in the housing market is beginning to dip – just as parties launch their manifestos.”
The report also showed demand continued to outstrip supply across the UK’s rental market.
A net balance of 35 per cent of professionals saw tenant demand rise rather than fall.
RICS said the growing gap between supply and demand for lettings “indicates that rental prices will continue to rise for the foreseeable future, albeit at a slower pace than previously”.
Labour, which is currently leading the polls, has promised to reform planning rules to build 1.5m more homes. Keir Starmer’s party also said it would give a “first dibs” to locals to end developments being sold off to international investors.
Meanwhile, the Conservatives have committed to building 1.6m homes over the next parliament. The pledge comes despite the party failing to deliver on their promise of delivering 300,000 homes annually in the last four years.
Labour worked hard to woo business, but now comes the real test
The Tory party manifesto, undeliverable and shaky though it was on the numbers, did have something going for it. The gradual abolition of national insurance to be replaced with a single income tax; more housebuilding; cutting the time it takes to get spades in the ground on major infrastructure projects. If you take it at face value and (perhaps more challenging) believe this current iteration of the oldest political party in the world is capable of delivering it, there wasn’t necessarily much to quibble with on the economic front.
It is Labour’s test today, and it is fair to say that the stakes are higher. The party has spent five years wooing the business community and has done a professional job of it. Keir Starmer and Rachel Reeves both admit privately that Labour has to work harder than the Tories to prove it has business’ interests at heart. Certainly, the rhetoric of wealth creation we will hear is welcome. Starmer is, we believe, genuinely aware that public spending – fixing things – requires growth. There is, however, one constantly repeated rumour that is setting off all sorts of alarm bells.
It is true that our tax system is broken. Property taxes are way out of date, business rates are designed for a pre-online world, a code that should be a 1000 pages at most runs to more than 20,000. Capital gains tax is not perfect, either. But to hike it – and one has to assume that a failure to rule that out when compared with the spending plans and state of the finances – would be a tax on entrepreneurship, a tax on risk, at the worst possible time.
The City will need to hear Rachel Reeves spell out her plans for CGT over the coming weeks. If she doesn’t, it is fair to say investors will assume the worst.
‘Nothing equates to a British pub’: TV hardman and ex-Eastenders star Ross Kemp on the perfect pint
TV’s favourite hardman, Ross Kemp, has been everywhere from Albert Square to Afghanistan but admitted, “nothing equates to a British pub.”
The 59-year-old, best known for his performance in Eastenders as Grant Mitchell, the son of longtime landlord of the Queen Vic, Peggy, and warring brother to Phil, told City A.M. he would “never say never” to the prospect of one day making a venture into the world of hospitality.
“My favourite line is, you never say never to anything in life…if there is an opportunity, and I think it could be profitable, why not give it a shot…I’d never rule it out,” he said.
“I think hospitality is the cornerstone in most communities…the pub is a central hub for many people in this country..not only with the cost of living crisis, but because it’s been such a hard time with Covid 19,” the former soap star added.
Ross Kemp on pubs
Television journalist made the comments as he embarked on a quest with brewing giant Heineken to uncover what makes a perfect pint.
The documentary maker has launched a mini-series with the brewery company to help landlords pour the best beverage for their customers with its new Smartdispense technology. The tech helps keep beer chilled from the keg to the tap.
Ross Kemp, a regular pub goer, told City A.M. it wasn’t very difficult to get on board and support Heineken with its venture.
“I don’t generally get involved in things and endorse them unless I think they’re absolutely 100 per cent doing what they say on the side of the can,” he said.
The technology also helps minimise environmental impact by reducing up to 85 per cent of the beer, cider, water, chemicals and CO2 usually wasted during line cleans.
Lawson Mountstevens, managing director of Star Pubs, Heineken UK’s pub business added: “Heineken Smartdispense has many benefits to help the everyday publican as well as their punters – who want to be able to spend their hard-earned cash on quality products.”
“Our research found that almost 60 per cent of Brits left an establishment after the first pint because the quality wasn’t up to scratch. In order to continue running a successful pub, you need to be able to rely on the quality of your pints to retain those important customers.”
Publicans aren’t the only ones who’ve been feeling the heat. The price of pints across the country has skyrocketed in recent years, and it could rise further when a new law comes into force in October.
Mounstevens added: “The hospitality industry is worth tens of billions to the UK economy – with pubs and brewing in particular making up over £20bn employing almost 1m people.
“The success of our industry is not only down to hard-working publicans up and down the country but also down to consumers who work just as hard and more than ever are wanting bang for their buck. As we all know, that hard-earned cash isn’t stretching as far as it could a few years ago.”
“As an industry we’re not immune to the impact of increasing costs such as food, energy and raw materials. Whilst we’ve tried to absorb everything we can, unfortunately, we have had to pass some costs on.”
“Equal to everyone”
With the sector under pressure, Ross Kemp described pubs as “equal to everyone” and admitted it’s where he would go to unwind after returning from filmmaking across several war-torn countries.
“When I was doing extreme world, the first thing I would do after saying hello to my family is wander down to my local pub, and buy a pint.
Ross Kemp
“[And] I would sit there on my own drinking, particularly if I was in Ukraine or if I’ve been to Afghanistan or Syria or Iraq or somewhere where the place is hostile. I would go down and have a silent pint on my own or two, and then I’d join in with everybody else,” Ross Kemp said.
“It wasn’t because I needed the drink. It was because I just wanted to sit in a place where I felt safe, and I felt that was my happy space.”
“There is nothing that I think equates to a great British pub. It’s part of what makes Great Britain great and it’s something that we should protect,” he added.