BA staff to have their own hotel

By Christina Golding

A New Heathrow hotel due to open next year could put a serious dent in its rivals' occupancy levels.

A former British Airways employee is investing £28m in what will be the country's first hotel to be used exclusively by the airline's cabin crew and ground staff.

Surinder Arora, managing director of Grove International, received the go-ahead from investors to build the Arora Hotel following lengthy negotiations with British Airways.

Arora said that similar ventures could follow at other airports, if the hotel is a success. Manchester is one possibility. "I will always look at any opportunity that comes along," he added.

Arora and BA have refused to disclose the agreed room rate but the deal will ensure that the 300-bedroom hotel has a constant occupancy level in excess of 80%.

Currently, airline staff use nearby hotels, including Heathrow's Ramada and the Excelsior Hotel.

"It will definitely affect our business," said Heinz Volland, general manager of the Ramada at Heathrow, who said that 25% of business is from airline staff.

Arora spent 10 years working for BA's customer services division before leaving in 1988 to set up a family business. He acquired four houses near the airport and turned them into guesthouses.

The guesthouses, on a two-acre plot, have been demolished to make way for the hotel.