Hospitality news and updates: February 2024
Welcome to our second industry round up of 2024. While we can’t quite believe we’re in March, in this round up, we’ll be looking at February’s industry news!
BT Tower to turn into a hotel
London’s BT Tower is set to be reimagined as a landmark in the capital’s hotel scene as part of a £275m deal with US hotel developers MCR Hotels. The building previously has been a beacon of communication and this new deal will ensure that the iconic landmark will be preserved for a different purpose for decades to come. Tyler Morse, CEO and owner of MCR Hotels, said: “We are proud to preserve this beloved building and will work to develop proposals to tell its story as an iconic hotel, opening its doors for generations to enjoy.”
Pryzm nightclub boss blames closures on students cutting back
Having shut nearly half of their venues, Pryzm's boss, Peter Marks has said that cost of living has meant that student behaviour is changing. 'They are coming later, so they're arriving in our doors later and spending less'. Marks told the BBC, “The cost of living is singularly the biggest issue that we face. A lot of students who used to be paying, say, £800 a month for their accommodation, have been facing [higher rents of] £1,200 a month,”.
This suggests that cost of living is hitting every area of the hospitality and recreational industries, including student spending, rent and energy bills of individuals and businesses.
BrewDog joins many other businesses in closing down locations
BrewDog has announced it will close 6 of its pubs, blaming spiralling costs and the Government. Brewdog’s boss also says the UK risks losing half of its pubs and bars and 'all the millions of jobs these locations provide' as a result of ‘no help from a clueless government’. This comes 2 weeks after BrewDog opened its largest bar in London's Waterloo Station.
Brewdog is just one of many businesses having to face the harsh reality of soaring energy and rent bills, no government assistance and the knock-on effects of the cost of living crisis.
The Ivy Group is up for sale with prices starting at £1bn
In December, it was announced that Richard Caring had turned to HSBC to advise on plans to sell his stake in the business. This follows reports of “strong growth” across sales and profits in 2023.
Fighting food insecurity: Restaurants Feed London
It is reported that 1 in 10 families in London have less than £3 a day to spend on breakfast, lunch and dinner. A new campaign by Will Savage and The Felix Project urges restaurants to sign up to a new campaign that donates unused food to those in need. This summer, the campaign will launch again and restaurants in and around London are urged to join the sauce to fight food waste and feed those who are going hungry.
That’s all from us for this month’s industry update. We’ll be keeping our eyes and ears open for all of March’s industry updates and back again next month with another recap of some of the latest happenings in the industry. Until next time!