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Fri, 15 September 2023

S Hotels Renovates and Upgrades IT Infrastructure at Key Properties in UK

(15/09/23)  S Hotels and Resorts, the Thailand-based hospitality investment and management company that is part of Singha Estate PCL, has unveiled plans to renovate several hotels in key cities across the UK, including the Mercure Manchester Piccadilly Hotel, Mount Royal Hotel Edinburgh, and The Grand Hotel Leicester, as well as extensive upgrades at another eight hotels.

The UK is S Hotels’ largest market, accounting for 65% of the rooms in its global portfolio. The company currently has 27 hotels comprising 2,940 keys nationwide, operating under world known brands such as Mercure and Holiday Inn, and situated in key business and leisure destinations across the country.

S Hotels is maximising its UK assets with the divestment of underperforming properties and the reinvestment of funds - supplemented by additional investment of around GBP 16 million (approximately 712.2 million Thai Baht) - in the renovation of assets with high potential. This strategy is expected to result in an occupancy rate of more than 75% and a 10-15% increase in ADR for the properties.

Suite living room at the Mercure Manchester Piccadilly Hotel. Click to enlarge.
Suite living room at the Mercure Manchester Piccadilly Hotel

In 2021, S Hotels purchased additional 50% stakes in 26 of its UK hotels, and the company recently completed the head lease acquisition of the 76-key Mercure Perth Hotel in Scotland, as part of its efficiency improvement strategy in the UK.

The company has also disposed of three properties: Mercure Newbury Elcot Park Hotel, Mercure Burton upon Trent Newton Park Hotel, and Mercure London Watford Hotel.

S Hotels is now embarking on the latest stage of its asset enhancement strategy in several key assets in the UK. A major renovation has now commenced at 280-room Mercure Manchester Piccadilly Hotel (pictured above) including upgrades to guest rooms, corridors and the lobby area.

At the 169-key Royal Mount Edinburgh City, which commands a prime location in the historic heart of Scotland’s capital city, overlooking Edinburgh Castle, the renovation will encompass the hotel’s guest rooms, lobby, corridors and façade, as well as Scott’s restaurant on Princes Street.

The Grand Hotel Leicester is a 104-key property which is set in a Grade II listed Victorian building, located close to the Cultural Quarter in Leicester’s vibrant city centre. A renovation project will now be undertaken that encompasses the hotel’s guest rooms and public areas.

S Hotels also recently completed the leasehold acquisition of the 91-rooms Mercure Glasgow City Hotel for GBP 7.5 million, which will help to unlock the hotel’s full potential. This will be followed by a renovation of the rooms and public areas in 2024.

In parallel with the upgrades being made to its bricks & mortar assets, S Hotels has invested in the improvement of the IT infrastructure of its UK portfolio, to optimise its guest experiences and drive operational and commercial efficiencies.

“The UK is an important market for S Hotels & Resorts, so we are excited to move ahead with this latest phase of our portfolio enhancement strategy,” said Dirk De Cuyper, CEO of S Hotels & Resorts. “The hotels we are renovating command prime locations within key business and leisure destinations. This makes them important assets and these enhancement projects will help to maximise the hotels’ potential. Moving forward, we will continue to optimise our portfolio and take advantage of the rapid recovery of tourism and hospitality in the UK, and around the world while boosting our revenues.”

At present, the group has 38 hotels and resorts comprising 4,552 keys in five countries: Fiji, Maldives, Mauritius, Thailand and the UK.

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