Three-star hotels blast ‘boring' jibe

Proprietors of three-star hotels have hit back at accusations that their establishments are "tired and boring" and that they need to be more innovative if they are to survive.

Hoteliers at the Hotel Marketing Association's annual "question time" meeting last week warned that three-star hotels were being squeezed by the tough economic conditions.

Peter Taylor, managing director of the predominantly four-star Hanover International chain, said that four-star hotels were increasingly trading down, putting three-star hotels under pressure.

"Three-star hotels are in a very difficult situation in the UK," he said. "The product is often tired and boring, and guests don't want to eat in the restaurant. What is more, the market is competing increasingly with the budget sector, which offers good rooms and product."

Carl Leaver, managing director of budget-end chain Travel Inn, warned that three-star hotels had to differentiate themselves to survive. "We do not need a product that is simply a little less than a four-star hotel," he said.

But owners of three-star hotels have rejected the attacks, pointing to the fact that more than half the UK hotel market is still made up of three-star properties.

Peter Cashman, chief operating officer at Choice Hotels, which has properties in all three markets, said: "The markets that are suffering most are the former two-star hotels and the bed-and-breakfast market. Yes, there are some three-stars that are tired, but there are a lot of tired budget hotels. I could also list tons of four-star hotels that are tired."

And Andrea Callis, general manager of the 37-bedroom Best Western Fowey hotel, said that the reality was that four-star hotels were often losing out to top-end three-star establishments, not the other way round.

But Paul Dermody, chief executive of De Vere Group, agreed that while the market for three-star hotels was still very much there, three-star hotels did need to position themselves better.

De Vere's three-star Village Leisure Hotels division, for instance, differentiated itself by offering health clubs, a branded pub and a restaurant.

by Nic Paton

Source: Caterer & Hotelkeeper magazine, 23-29May 2002