Crown Hotel Programme (CHP) Year 2

Kate Wimpeney

Director of Commercial Operations

Today’s Agenda

• 10:30 Welcome & CHP UK

• 11:00 International CHP - HRG

• 11:45 Host hotel presentation & Q&A

• 12:00 Show rounds of hotel and light lunch provided by venue

• Showarounds of local hotels arranged

▫ Here, Millennium Baileys, BW Cromwell, Park

International, Radisson Edwardian Blu Vanderbilt,

• 13:00 HRG guests depart for shawarounds

• Return from lunch for Redfern guests

Agenda

• What is CHP, and what are the benefits?

• The CHP process

• Minimum standards and other considerations

• Rate terms

• Vital statistics

• How to identify Crown rates

• On-going management

• Market performance

• News from the chains

• Market predictions

• Continuous improvement

What is CHP?

• CHP scope was top 75% of locations’ consolidated spend

• It’s the 1st non-commissionable Government hotel programme

• It balances consolidation opportunities with volume delivery and coverage

• RfP once a year, but responsive and ever changing

• Guarantees a number of rooms available at this rate in busy markets

• Flexible cancellation terms

• Breakfast included in most rates (with a few exceptions) – mainly serviced

apartments & Tune Hotels

CHP Benefits

For the department

• Government now buying as one

customer

• Aggregated £ and volume to

ensure lowest rates

• Consistent rate delivery

• Focus on key locations

• Fully supports delivery of

Procurement Policy Principals of

£75/£115

• Aids budgeting

For the traveller

• Consistency of product

• Rate expectations met

• Choice in key areas

• Flexible terms

• Good availability

• Hotels all now familiar with

CHP and requirements

• Fewer payment issues on check-

out

The CHP Process

• Data is collated from both agents and the top 75% of common locations

form the backbone of CHP

• Areas specific to only one agents receives key focus

• Likewise high volume requirements specific to only one department will

be identified and incorporated

• The RfP is issued annually in December so loading can begin as soon as

possible in the New Year for minimal ‘downtime’

• Hotels are selected based on rate, minimum standards, rate terms and

conditions, and a quantifiable demand has been identified

CHP Minimum Standards

• Lockable door and peep hole or door chain • En-suite facilities including shower or bath • Tea/coffee making facilities • Television and remote control • Wardrobe/hanging space • Work area and chair • Non smoking room • Rooms guaranteed for late arrival • 24hr security cover and/or procedures • 24hr reception/concierge cover • Easily accessible dining for breakfast & evening meal • Ironing facilities • Hair drying facilities • Adjustable temperature control/solution

Additional criteria

• Hotels nearest departmental locations are selected where possible

• Proximity to mainline & tube stations

• Ensure event lead cities can still support the demand at peak times

• Value adds and guest comfort - free wifi, food and beverage offers

• GDS connectivity for instant availability and confirmations is desirable

• Established relationship with departments is always considered

• Good track record of service

• Consistent CHP availability

Rate terms and conditions

• All Crown rates include VAT

• All Crown hotels have committed to billback to HRG and Redfern

• If the rates does not say that it includes Breakfast, then it does NOT

include Breakfast (for non-Crown content)

• Most Crown rates are cancellation on the day of arrival

• There are no early departure fees

• Rates are guaranteed for late arrival

• There will be some in more remote/rural locations – independents that

will have less flexible terms

CHP Vital Statistics

• 2159 hotels on the UK programme

• Across 754 towns and cities

• 718 hotels are cheaper this year then last

• Many rates held year 1 to year 2

• 175 hotels in London

▫ 152 rates £115/<

▫ 78 between £116 - £125

• Over half of Redfern current bookings are booked on Crown rates

How to identify a Crown Rate? You can search for just Crown hotels by

checking this box on the search screen

On the results page the 1st star

indicates a Crown hotel, the 2nd star

next to the rate name indicates Crown

rates

Always check cancellation policy in the

‘full rate information’ and ensure if

flex is required, flex is booked

On-going management

• Rate audits to ensure good availability

• Ensure only approved room types loaded

• Allocation uptake monitored

• Data share with HRG with allocation redistribution if required

• Take up any instances of reported payment challenges with hotels/chains

• Take action with hotel (block for example) if CHP availability is a

challenge

• Remove hotels from programme if measurable complaints received in a

short period

Top 20 Cities by Nights - Redfern Nights

76696

19676

17812

14673

13874

10915

13515

6774

6635

6221

6130

5697

4919

4212

4172

4049

3762

3491

3291

2976

London

Manchester

Birmingham

Leeds

Bristol

Liverpool

Newcastle

Sheffield

Edinburgh

Cardiff

Nottingham

Croydon

Glasgow

Southampton

Coventry

York

Reading

Plymouth

Blackpool

Oxford

Top 20 Cities by Nights - HRG Nights

57564

12625

11363

8380

5124

4934

4926

4398

4260

4239

4121

3383

3364

3336

3216

3015

2850

2741

2679

2633

London

Bristol

Glasgow

Birmingham

Portsmouth

Edinburgh

Cardiff

Plymouth

Liverpool

Manchester

Salisbury

Farnham

Gloucester

Leeds

Aberdeen

Exeter

Witney

Bournemouth

York

Blackpool

How is CHP Performing?

All Locations

Market

Share ARR

Advanced Non-

Flex 2% £ 73.42

BAR 26% £ 72.27

CHP 56% £ 68.37

Budget Brands 14% £ 65.89

Overall £ 70.42

Prices are excl. VAT

How is CHP Performing?

London Provinces

Market

Share ARR

Advanced

Non-Flex 2% £ 119.35

BAR 21% £ 104.54

CHP 49% £ 101.70

Budget Brands 28% £ 79.97

Overall £ 99.65

Market

Share ARR

Advanced Non-Flex 2% £ 65.29

BAR 27% £ 76.00

CHP 57% £ 61.92

Budget Brands 15% £ 56.65

Overall £ 63.48

How is the market performing?

• The expected post Olympic ‘slump’ has not manifested

• London has sustained the additional bedstock for 2012

• Business buoyant, with record occupancies in August

• Already BOB is for September and October is strong

• Rates this up in many provincial areas YOY this summer

• Aberdeen has seen the highest rate increases in the UK

• Oxford, Reading, Exeter, Peterborough,

• Worcester and Cambridge remain difficult markets to

achieve £75 B&B in

• Sheffield, Cardiff, Blackpool and Nottingham remain

softer

The Olympic hangover that never was

£-

£20.00

£40.00

£60.00

£80.00

£100.00

£120.00

£140.00

£160.00

Jan Feb Mar Apr May Jun Jul Aug

2012

2013

News from the chains

• Travelodge have completed refurbishment at over 80 hotels incl.

Covent Garden, City Road, Southwark and Waterloo

• This summer has seen the opening of 3 new hotels in Bham – Hampton

by Hilton, Holiday Inn Express and Ibis Styles

• Premier Inn announce – The Hub, ‘a new generation of compact, city

centre hotel’

• Accor opened a new Adagio (extended stay brand) in Liverpool

• Ibis Euston – communal area refurbishment complete

• Travelodge have opened London Vauxhall – 148 beds

• Grange Wellington - £102 – trial until end Dec 13

• London Indigo Kensington opened Dec12

Market Predictions

• We will not see any softening in the London market now until Jan

• Hotels in the capital will be looking to increase rates next year to

regain ADR

• £75 will become even more challenging in the key provincial areas

that have performed well in 2013

• The new openings in Bham, Ncastle, Sheffield, Lpool will see rates

remain lower

• Departments will need to exclude hotels previously used to drive

down ARR with some ‘favourites’ exceeding budget in buoyant

provincial locations