In the last week, there were two worrying developments in the United Kingdom that could affect hotel demand, operations and confidence.
I have a friend who is fond of saying in such situations that gone are the gatekeepers, the custodians created to make life more pleasant, negotiable and satisfying.
First, there's the publication of the official report of the inquiry into the devastating Grenfell Tower fire, which occurred more than seven years ago, on June 14, 2007, and in which 72 residents died.
A huge concern was the danger of the cladding used on Grenfell Tower and countless other buildings, but rarely if ever hotels.
Homeowners realizing they owned homes with such cladding either were presented with huge bills to rectify the issue, or a home that was suddenly worthless.
Critics heaped blame on manufacturers of cladding products, the government and local authorities. The inquiry called this “systematic dishonesty,” on ”incompetent” companies involved in refurbishment work in 2011; on the 2010 Conservative-Liberal Democrat government that “ignored, delayed or disregarded” safety matters; and on the local authority, the Royal Borough of Kensington and Chelsea and its housing division, the Tenant Management Organisation, which is said showed a “persistent indifference to fire safety.”
The report even criticized the London Fire Brigade, which it said, “lacked a strategy to evacuate the building once they had lost control and had an unfounded assumption the type of blaze which occurred at Grenfell Tower could not happen.”
Will anyone be held to account amid the huge weight of detail, responsibility, instructions and confusion?
What leads to so many organizations and people not realizing that due care and attention is not being played out?
It is a question that should be worrying to all.
Even if hotels and resorts do not have these same logistics or materials, there can never be sufficient checks and safety materials, drills and training.
The outlook of High Streets
The second worrying report is on the state of British High Streets, a theme I have returned to countless times.
Last week business consultancy PwC published a report titled “Store openings and closures H1 2024,” which outlined the perilous state of the country’s retail veins.
The paper did say there was cause for optimism, stating that “compared to H1 2023, 13 fewer outlet categories are in decline, and half of all net closures are concentrated in just three categories,” which are banks, pharmacies and pubs.
A perfect High Street, in my opinion, has several characterful pubs, hotels and restaurants, book and record stories, coffee bars and drop-in centers, as well as shops I might not be interested in, but I assume others are. Variety, community and vitality.
What I see often are High Streets comprised almost solely of charity shops and nail and hair salons — and yes, they have their place and need.
Banks are in decline, and that is largely of their doing. Banks used to be community-focused, as did post offices, but there has been a sustained effort to get people doing all such business online. At some point, the banks can say no one uses the branches anymore.
At the beginning of this year, I tried to set up an appointment with my bank, only to see that the nearest branch was four miles from my home. I duly discovered the branched was comprised of one very kind person sitting behind a laptop in a corner of a lobby of a swimming pool center.
Wouldn’t it be nice if I could have had my appointment after or before, or both, enjoying a coffee and then lunch at a hotel or pub … if either existed.
Some commentators have said people now prefer to go to one-stop-gets-all shopping mega-malls and the like, but my goodness, how dull is that! But the report adds that even shopping centers are seeing a reduction in demand.
PwC said in its report that in the eight years between June 2016 and June 2024, 6,945 stores, including hotels, bars and restaurants, closed, while 4,661 opened.
It comes down to footfall, or the lack of it. This is a job for visionary urban planners.
PwC added that “footfall is a significant part of the explanation for this trend. Currently 15% to 20% lower than before the pandemic, the decline in numbers of shoppers has dampened sales and the profitability of some stores and hospitality operators. High Streets, in particular, have continued to suffer, with a decline in footfall in every month of 2024 so far, except for March, explained by the earlier Easter holidays.”
But there's more optimism, at least for the hospitality sector, the report added: “How consumers choose to prioritize their [spend] and take up their time has changed. There’s been a continued shift, with consumers seeking new experiences and spending more time with friends and family. This should be welcome news for the hospitality sector.”
The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.