Consortium to hit aquisitions trail
by Dominic walsh
Grand Heritage Hotels Europe, the fledgling marketing consortium aimed at historic properties, looks set to move into the field of management contracts and joint ventures.
Its US parent company has acquired three hotels this year, including the Clift Hotel in San Francisco, for a total of more than $50m, and its European subsidiary is now ready to go down a similar route.
Grand Heritage Europe was set up a year ago by Robert Davis, former European vice-president of marketing for Inter-Continental Hotels, but to date the company has restricted itself to marketing representation.
Its next significant move will be the launch next week of its first directory, to be sent to travel agents, conference and incentive buyers, members and guests. It contains details of 30 hotels in the USA and Europe, of which 16 are in the UK.
The UK portfolio includes Thornbury Castle in Avon, Bailiffscourt in West Sussex, the Milestone in London, One Devonshire Gardens in Glasgow, and Giuseppe Pecorelli's four Exclusive Hotels in Hampshire, Sussex, Surrey and the Cotswolds.
Mr Davis described target hotels as "landmark properties that are historically, culturally and architecturally significant".
The cost of membership of Grand Heritage varies, but is made up of three elements:
A joining fee of between £1,000 and £3,000;
A monthly marketing fee of between £600 and £2,000 depending on number of bedrooms and the level of business generated;
An over-rider based on the amount and source of business produced.
In return hoteliers gain access to global marketing through a central reservations system based in Phoenix, and sales offices in New York, Washington DC, Paris, London and Scotland.
Although marketing will continue to be the focus of the company's business, Mr Davis said this week he was in the early stages of negotiating a joint venture acquisition of "a significant property in the UK".
"We have a number of investment groups prepared to invest in Grand Heritage as long as we can find the right properties," he added.
Mr Davis and business development director Timothy Hadcock - formerly of Cunard Hotels - are also "actively" seeking management contracts. "We've turned around about six properties in America so we've got a good track record," said Mr Davis.
He hopes to add another 20 properties in the British Isles, with particular emphasis on Scotland and Ireland. He is also keen to sign up another marketing partner in London.
