As part of the latest phase of the firm’s 3P (profit, portfolio, planet) strategy, it is initiating refurbishments at Mercure Manchester Piccadilly Hotel, Mount Royal Hotel Edinburgh, and The Grand Hotel Leicester, plus extensive upgrades at another eight properties.
Under the ‘portfolio’ section of the 3P strategy, which is focused on an asset rotation and enhancement program, S Hotels & Resorts is maximising its UK assets with the divestment of underperforming properties and the reinvestment of funds – supplemented by additional investment of around £16 million (approximately US$20.1 million) – in the renovation of assets with high potential.
S Hotels & Resorts is now embarking on the latest stage of the asset enhancement strategy, with a major refurbishment of Mercure Manchester Piccadilly Hotel, the 280-key landmark hotel in the heart of this major city, including upgrades to its guest rooms, corridors and lobby area. This project is intended to reaffirm the property’s position as one of Manchester’s leading hotels for leisure breaks and events.
At the 169-key Royal Mount Edinburgh City, which commands a prime location in the historic heart of Scotland’s capital city, overlooking Edinburgh Castle, the renovation will encompass the hotel’s guest rooms, lobby, corridors and façade, as well as Scott’s on Princes Street, the popular restaurant.
Infused with the vintage charm of Scottish culture and surrounding architecture, this transformation will aim to tell the story of Edinburgh by incorporating the colour palette of Princes Street Gardens and capturing the city’s literary history.
The Grand Hotel Leicester is a 104-key property which is set in a Grade II-listed Victorian building, located close to the Cultural Quarter in Leicester’s city centre. A renovation project will now be undertaken that encompasses the hotel’s guestrooms and public areas.
S Hotels & Resorts also recently completed the leasehold acquisition of the 91-room Mercure Glasgow City Hotel for £7.5 million, which is intended to help unlock the hotel’s full potential. This will be followed by a renovation of the rooms and public areas in 2024.
Furthermore, the firm latterly completed the head lease acquisition of the 76-key Mercure Perth Hotel in Scotland as part of its efficiency improvement strategy in the UK.
Dirk De Cuyper, CEO of S Hotels & Resorts, stated: “The UK is an important market for S Hotels & Resorts, so we are excited to move ahead with this latest phase of our portfolio enhancement strategy.
“The hotels we are renovating command prime locations within key business and leisure destinations. This makes them important assets and these enhancement projects will help to maximise the hotels’ potential. Moving forward, we will continue to optimise our portfolio and take advantage of the rapid recovery of tourism and hospitality in the UK and around the world while boosting our revenues.
The UK is S Hotels & Resorts’ largest market, accounting for 65% of the rooms in its global portfolio of 38 hotels and resorts, comprising 4,552 keys in five countries – the remainder being Thailand, Maldives, Mauritius and Fiji.
In the UK, the company currently has 27 hotels comprising 2,940 keys, operating under renowned brands including Mercure and Holiday Inn, and situated in leading business and leisure destinations across the country.