Hotel & Catering Review - February 2014

Hotel

& Catering

Review

News: Industry gets ‘poor service’ wake up call Feature: Are we witnessing the birth of the celtic cub?

Wine: Michael foley on the impact of duty increases in budget 2014 Five Minutes With: Catherine Dundon

february 2014

hotelandcateringreview.ie

the next big thing in tourism:

the wild Atlantic Way

FÁilte Ireland CEO, Shaun Quinn I r e l a n d ’ s p r e m i e r m ag a z i n e f o r t h e h o s p i ta l i t y & c at e r i n g i n d us t ry

CONTENTS 2 Editor’s View 3 News & Views 12 ON The move New Appointments, Promotions and Recruitment.

14 Key to the Door Openings, Closures, Refurbishments & Acquisitions.

22 IRISH FOOD Belleek Castle in Ballina, Co Mayo, was named as the Just Ask Restaurant of the Year at the launch of Bord Bia’s Just Ask 2014 campaign which encourages diners to ask where their food comes from and urges restaurants to provide this information on menus.

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Cover Story: Where Do We Go From Here?

Maev Martin talks to three of the industry’s key figures about how Irish tourism can sustain and build on the growth in visitor numbers and occupancy rates achieved during 2013.

Irish food and drink exports were worth a9.99bn last year, according to figures released

by Bord Bia last month. This means that food and drink exports are now almost a3bn higher than they were in 2009.

28 Supply Line Essential Product Knowledge.

30 WINE Michael Foley looks at the impact that the duty increase in Budget 2014 will have on hotels, restaurants and other licensed premises in 2014.

32 PROPERTY

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Profile: The Local at Dunbrody

A local pub reminiscent of an Emergency-era shebeen is not what springs to mind when you think of a Blue Book country house hotel and estate. But that is the most recent addition to Catherine and Kevin Dundon’s operation and business is booming.

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Feature: the Birth of the Celtic Cub?

Donagh Davern reports from the Irish Hotel Property Conference which took place on December 10th in the Double Tree by Hilton Dublin Burlington Road

The ‘done deals’ of 2012 and 2013 provide an insight into the property value of the Irish hotel sector and into the level of debt which still requires realignment across the sector. Aiden Murphy of Crowe Horwath reports.

36 Five Minutes With Catherine Dundon, co-owner of Dunbrody Country House Hotel

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EDITOR’S VIEW Confidence in the Irish tourism industry about its prospects for the year ahead is at its highest level for many years with almost all accommodation providers in the sector expecting to increase or maintain business in 2014. That is according to Fáilte Ireland’s Annual Tourism Industry Review which was published in January.

Editor Maev Martin Email: maeve.martin@ ashvillemediagroup.com Telephone: 01 432 2271

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The buoyancy is reflected in the employment numbers.

It is now estimated that 137,700 people are employed in the accommodation and food service sectors alone. This represents an increase of almost 12% (14,700 extra jobs) since 2012. Fáilte Ireland estimates that total tourism employment (when other parts of the sector such as conferencing, attractions and festivals are included) is now approaching 200,000.

The Gathering delivered at least 250,000 to 275,000 extra tourists in 2013 and exceeded its revenue target, bringing a €170m boost to the Irish economy but, most encouragingly, most hoteliers don’t believe that the industry’s 2013 performance was a one-off.

In fact, almost all (98%) accommodation providers expect the same or increased visitor volumes next year and more than seven out of 10 hotels expect to increase their volume of business in 2014. Almost six out of 10 restaurants are expecting growth in volumes during 2014 and guesthouses are also expecting a good out-turn, particularly from North America. Even the B&B sector seems to have turned a corner, with 95% of operators expecting increased or existing levels of business in 2014, a marked jump in sentiment from previous years.

Perhaps the most positive Fáilte Ireland finding was that tourism businesses are now in a position to focus on activities that will grow revenue streams, such as more aggressive sales and marketing efforts, new products and services, and greater targeting of overseas markets. And the value for money rating for Ireland as a destination continued upwards in 2013.

But, despite the impressive statistics, it is very much a case of ‘a lot done, more to do’. The phrase ‘Build it and they will come’ – made famous by the 1989 film Field of Dreams – is, unfortunately, not the case when it comes to promoting the Irish tourism product.

We have a wonderful product. The figures quoted in this column couldn’t have been achieved if we hadn’t, but where the industry continues to fall down is on the issue of access. If we could improve access to the country from certain parts of the globe, the visitor and revenue numbers could be even more impressive. If foreign airlines could be persuaded to fly into Knock, Shannon, Cork and other regional airports it would also help utilise some of the excess bed capacity that still exists in our industry, particularly in the regions. The government and representative organisations should be actively encouraging foreign airlines to bring people from more diverse locations around the world and to bring them into the regions, not just Dublin. If the industry succeeds in doing this the entrepreneurial spirit of local tourism businesses and of private and State enterprise organisations will kick in, creating a more level playing field for operators in every part of the country.

hotel & catering review

“ The buoyancy is reflected in the employment numbers.

It is now estimated that 137,700 people are employed in the accommodation and food service sectors alone.”

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www.facebook.com /hotelandcateringreview Editor: Maev Martin Editorial Manager: Mary Connaughton Art Director: Geraldine Dunne Design: Alan McArthur Layout: Alan McArthur Advertising Design: Séamus Neeson COVER IMAGE: Image courtesy of Fáilte Ireland Stock Photography: Thinkstockphoto.com Production Manager: Len Wilson Production: Nicole Ennis Sales Director: Paul Clemenson Sales & Marketing Manager: Hilary O’Shaughessy Managing Director: Diarmaid Lennon Published by: Ashville Media, Old Stone Building, Blackhall Green, Dublin 7. Tel: (01) 432 2200 ISSN: 0332-4400 All rights reserved. Every care has been taken to ensure that the information contained in this magazine is accurate. The publishers cannot, however, accept responsibility for errors or omissions. Reproduction by any means in whole or in part without the permission of the publisher is prohibited. © Ashville Media Group 2013. All discounts, promotions and competitions contained in this magazine are run independently of Hotel & Catering Review. The promoter/advertiser is responsible for honouring the prize.

News & Views

NEWS & VIEWS

Tourism Ireland Welcomes Aer Lingus Expansion Tourism Ireland welcomed the announcement in December by Aer Lingus Regional, operated by Aer Arann, of the expansion of its services to Cork Airport. This involves the addition of 50,000 seats, including a new flight from Newcastle four times a week, and expanded services on existing routes from Manchester and Bristol. “The expansion

by Aer Lingus Regional of its services to Cork is wonderful news and will increase travel options for British holiday and business visitors to Cork and the South of Ireland in 2014,” says Niall Gibbons, Chief Executive of Tourism Ireland.

Donegal Tourism Goes Out of This World

New Look Jurys Inn Following a1.8m Refurb Jurys Inn Galway celebrated the completion of a €1.8m refurbishment at an exclusive event hosted at the hotel before Christmas. The investment forms part of an extensive €31m refurbishment programme currently being rolled out by Jurys Inn Hotel Group.

In attendance on the evening was local artist Margaret Nolan who was commissioned to provide a collection of paintings to celebrate the hotel’s redesign, and which are on display in the Quay Street hotel’s lobby area. Highlighting Jurys Inn’s proud Galway heritage, the pictures depict local street scenes, including the nearby Spanish Arch.

The hotel, which marked its 20th anniversary last year and employs over 60 people in the area, received a complete redesign of its lobby, bar and restaurant areas, as well as a new look across its 130 bedrooms. The hotel’s bedrooms were redesigned earlier this year, with dark wood furnishings, warm fabrics and spacious bathrooms with new chrome power showers.

All rooms also have adjustable heating, Wi-Fi and flat screen TVs. The Irish hotel group was awarded a major industry accolade when it was named the ‘Best Irish Hotel Chain’ this year at the 2013 Irish Travel Industry Awards for the second time running.

The Hotel Group was named the ‘Best Small or Independent Hotel Brand’ at the 2012 Business Travel Awards, having also received the award in 2010. In addition, the Green Tourism Business Scheme continues to recognise Jurys Inn as Ireland and the UK’s Greenest Hotel Group.

At the Celebration were Donna Halliman, Laura Canavan from Ulster Bank with Cathy Walsh, General Manager, Jury’s Inn Galway, and Clodagh Lennon from Ulster Bank.

Senior infant pupils at Gaelscoil Bhun Cranncha, Niamh Ní Chrabhagáin, Daile Ní Bhreisleáin, Aoibheann Nic Ghoil Ní Chatháin and Willow Ní hIril gave astronaut Chris Hadfield an impromptu Irish lesson on his visit to the school. Also pictured is Emma Gorman, Tourism Ireland.

Tourism Ireland has enlisted the help of former International Space Station commander, Chris Hadfield, to highlight Ireland as a top holiday destination for 2014 and beyond. Tourism Ireland will create three short films of Hadfield’s visit, featuring different themes like Gaelic games and the Irish language, our spectacular scenery and major visitor attractions, which will be shared

by Tourism Ireland with its Facebook fans and Twitter followers around the world. Colonel Hadfield recently visited Buncrana, Co Donegal, where he learned ‘cúpla focal’ Gaeilge from some of the local schoolchildren. He also attended a traditional music session and viewed the Inishowen Peninsula, the starting point of the Wild Atlantic Way, during his time in Donegal.

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News & Views Gold Accommodation Award for Connemara Coast The Connemara Coast Hotel was presented with a Gold Star Award for the second year in succession at the Irish Accommodation Services Institute Awards on January 26th for achieving excellence in accommodation service standards for the quality, hygiene and cleanliness of its bedrooms and public areas.

The four star resort hotel also recently celebrated its inclusion in ‘The Bridgestone 100 Best Places to Stay 2013’ for the fourth consecutive year and it is also a member of Good Food Ireland, which recognises and endorses establishments that use Irish, local and artisan food produce.

Staying in Galway, the Galway Bay Hotel in Salthill has been rated as one of the Top 20 Resorts in Europe in the Readers Choice Awards of the Condé Nast Traveller, which is the world’s top traveller magazine. Galway Bay Hotel was judged on areas such as food quality, excellence in service, property location, activities provided, and overall experience.

Tourism Ireland Targets German Market Twenty-four Irish tourism enterprises travelled to Offenbach in Germany in December to take part in a B2B workshop and networking event with leading German tour operators. The event was organised

by Tourism Ireland, in a bid to grow visitor numbers from Germany, the world’s largest outbound travel market. The event gave participating Irish companies the opportunity to showcase their product and to convince the influential German travel professionals in attendance to include Ireland in their holiday programmes for 2014 and beyond. Given that travel agents and tour operators continue to be the main booking channel for German holidaymakers, a key element of Tourism Ireland’s strategy is to work closely with the travel trade – both online and offline – in Germany. “Germany is the third-largest source of visitors to the island of Ireland,” says Zoe Redmond, Tourism Ireland’s manager for Central Euruope. “Right now, we are planning a busy programme of promotions for 2014, to keep the momentum growing and build on the growth in 2013.”

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(l-r): Eva Schmid, Killarney Hotels, Andreas Jakobtorweihen, Whites Hotel Group, and Emma Allen, Lee Hotels, at Tourism Ireland’s B2B workshop in Offenbach.

Jurys Scores Hat Trick at Travel Awards Jurys Inn Hotel Group has been awarded Best Irish Hotel Chain for the third year in a row at the Irish Travel Industry Awards 2014. Organised by the Irish Travel Agents Association, the awards were presented at a special ceremony in the Mansion House in Dublin. The hotel group was recognised for its commitment to delivering the highest standards and best customer service to both leisure and business travellers.

Jurys Inn has previously been named Best Hotel Brand by the Business Travel Awards on two occasions (2010 & 2012), and continues to lead in the area of sustainable hospitality, with all 31 hotels across the group holding Gold accreditation from the Green Tourism Business Scheme - the only hotel group to achieve this rating.

(l-r): Alan Buckley, Hotel Manager, Jurys Inn Christchurch, Dublin, Martin Skelly, Managing Director, Navan Travel, TV presenter Miriam O’Callaghan and Patrick Cass, Hotel Manager, Jurys Inn Custom House, Dublin.

News & Views

(l-r): Fiona Whitehead, Creative Travel & Event Management, based in Middlesex, Mary Rose Hickey, Killarney Hotels, Michelle Murphy, Kerry Convention Bureau, and David Boyce, Tourism Ireland, at Tourism Ireland’s B2B workshop in London.

Two Million Facebook Fans For Tourism Ireland

Ireland Meets London’s West End Thirty-six tourism enterprises from around the island of Ireland travelled to London in December to take part in a B2B workshop and networking event organised by Tourism Ireland. At the event, they met, and did business with, senior representatives from 45 of the top British conference and meetings organisers. Tourism Ireland highlighted the Wild Atlantic Way to the top-level decision-makers who attended from the MICE (meetings, incentives, conferences and events) sector around Britain.

Business tourism is the most lucrative form of tourism, with visitors travelling here for business purposes spending about 2.5 times more than the average visitor. David Boyce, Tourism Ireland’s head of business and sports tourism, says that the agency’s promotions have been highlighting “the variety of new and exciting venues around the island of Ireland, ease of access from Great Britain, as well as the good value rates available for meetings and conferences”.

Tourism Ireland has reached two million fans on Facebook around the world, with 825,000 new fans ‘liking’ its Facebook pages in 2013 alone. This makes Tourism Ireland the biggest tourism board in Europe and the third most popular tourism board in the world on Facebook after Australia and Discover America.

Reaching two million Facebook fans is significant because each fan has an average of 200 friends so Tourism Ireland is just one click away from having its messages and photos shared each week with about 400 million friend connections worldwide.

Merrion Square Chosen as European Innovation Example Fáilte Ireland’s Merrion Square project has been chosen as one of twenty cases of innovation and best practice by the European Commission in a new report –‘Enhancing the Competitiveness of Tourism in the EU’.

The report contains 20 examples of tourism projects across Europe that have utilised best practice when implementing tourism projects which have led to increasing the competitiveness of the tourism industry across Europe. Each of the 20 cases broadly illustrates one of four major themes; extending the season and diversifying the supply of tourist services; training, skills development and building capacity; developing the use of ICT; marketing and promotion.

The Merrion Square project was chosen under the marketing and promotion theme as an example of a tourism project which used innovation to improve the basic market proposition and exploit new marketing tools. By highlighting examples of how policy can be put into action the report aims to support other countries and cities across Europe to develop similar approaches. A full copy of the report can be found at: www.ec.europa.eu

(l-r): Tourism Ireland CEO Niall Gibbons, Brian Harte, Head of E-Marketing with Tourism Ireland and E-Marketing Executive Sarah Fitzpatrick at the Facebook announcement.

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News & Views

Bord Bia Marketing Fellows Ronan Gormley and Emer Dunne at the announcement of the career-enhancement programme on January 14th last.

Rugby Stars Club Together at Druids Glen The Druids Glen Resort in Newtownmountkennedy, Co Wicklow, recently announced Irish and Leinster rugby stars Rob Kearney, Dave Kearney, Fergus McFadden, Ian Madigan and Leo Cullen as their new ambassadors for 2014. The five star rugby players, who are all keen golfers, lined out for the official announcement and to help launch the Resort’s golf membership options for 2014 which start from €1,000 per annum.

Druids Glen Resort has two championship golf courses, Druids Glen and Druids Heath, and won the ‘Best Overall Golf Resort’ award in the Golfers Guide to Ireland 2013. The Druids Glen course is famous for hosting the Irish Open on four occasions, along with the prestigious Seve Trophy. Druids Heath once hosted the Irish PGA Championship.

Free Food Event Listings on Flogastronomy

bord bia launches recruitment drive Bord Bia announced on January 14th that recruitment is underway to select 20 ambitious individuals to take part in a year-long careerenhancement programme in association with the UCD Michael Smurfit Graduate Business School. The Bord Bia Marketing Fellowship offers graduates from all disciplines the combined opportunity of obtaining an MSc International Marketing Practice masters from the UCD Michael Smurfit Graduate Business School while completing action learning assignments on behalf of Irish food companies in one of 12 key overseas markets. Participants receive a bursary of €22,800 in addition to having their tuition fees paid. Applications are welcomed from graduates with a minimum of two to three years work experience and an interest in business development and sales. Some placements will require fluency in a second language. Applicants will undergo a rigorous selection process and the 20 candidates demonstrating the most potential to add value to the Irish food and drink industry will be selected. The closing date for applications is Wednesday, March 5th, 2013. For further information or to submit an application visit www.smurfitschool.ie/bordbia.

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www.flogastronomy.com, the blog devised

by Flogas for those with a passion for food, is in the process of creating a calendar of food festivals and charity food demonstrations throughout Ireland. Whether it’s a large scale affair or a smaller, local one for a cause close to a community’s heart, Flogastronomy.com is happy to help organisers promote their event, free of charge, to its growing network of visitors. All details should be forwarded to flogastronomy@gmail.com.

“We are working with well-known food blogger, Caitríona Redmond of Wholesome Ireland, to promote and support the food and local community throughout Ireland,” says Eoin O’Flynn of Flogas Ireland. “We’re also happy to receive food news, views, recipes and there’s an opportunity to become a guest blogger as well!” In addition, if local restaurants and chefs have any recipes, cooking tips and culinary-related news that they would like to share, or if any Hotel & Catering Review readers are interested in becoming a guest blogger, they can contact Caitríona Redmond on flogastronomy@gmail.com.

News & Views

Millie Mackintosh, star of the hit TV series Made in Chelsea (centre), with her sister Alice (right) and Deirdre O’Brien, Tourism Ireland, at the Molly Malone statue in Dublin.

When Millie Met Molly Millie Mackintosh, former star of the hit TV series Made in Chelsea, was in Dublin to celebrate the New Year. Invited here by Tourism Ireland in London, over two days Millie enjoyed some of the great shopping on South William Street and Drury Street, trying out popular restaurants like Crackbird and Fade Street Social and venues like The Liquor Rooms, indulging in a spot of pampering at Brown Sugar and taking in tourist attractions like the Guinness Storehouse. She also joined in the New Year’s celebrations at The Countdown Concert in the city centre.

Photos and video footage of Millie checking out some of Dublin’s ‘hotspots’ were captured during her two-day visit and were shared by Tourism Ireland on social media, including Facebook (more than 314,000 fans in Britain alone) and with influential travel and lifestyle media around Britain. Millie has also been tweeting about her time in the city to her 746,000+ followers on Twitter. The aim of the visit is to generate greater awareness of Dublin as a cool, happening city, and of the many great things to see and do here, among ‘social energisers’, one of Tourism Ireland’s key segments in Britain.

“Tourism Ireland in Great Britain has a strong and comprehensive programme of promotions in the pipeline for 2014,” says Niall Gibbons, CEO of Tourism Ireland. “The most recent figures from the CSO – up to the end of November – show a welcome return to growth in British visitors of +5%. Our plan is to welcome an additional 200,000 British holiday visitors per year by 2016 (+20%).”

Wilde’s Receives Michelin Red Guide Recommendation Wilde’s at Lisloughrey Lodge, situated on the outskirts of the village of Cong, Co Mayo, has been highly recommended by the Michelin Red Guide 2014.

Originally from Kylemore in Connemara, Wilde’s Head Chef Jonathon Keane has been referred to as ‘one of the country’s most exciting chefs’.

The Michelin Red Guide recognises restaurants with excellent cuisine and service, carefully reviewed and selected for recommendation by a panel of experts.

It adds to the wealth of accolades Lisloughrey Lodge has been awarded in recent months, including the Food and Wine nomination for ‘Best Chef in Connacht’, the RAI Connacht award for ‘Best engagement with the Gathering’ as well as Hotpress magazine’s ‘Best Unique Places to Stay’ award.

“Each member of the kitchen team is unbelievably passionate about what they do and they all bring their own talents and skills to carefully creating every single dish we prepare and serve,” says Jonathon Keane. “For those attributes to be recognised by the Michelin Red Guide is simply fantastic.”

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News & Views

(l-r): Genealogist Karel Kiely, Mark Henry, Tourism Ireland and prize-winner Mary Powell, plan Mary’s visit to the homestead of her ancestors in Co Wexford before she set off on her journey.

Growth Plans for Roots Tourism Following the success of The Gathering initiative last year, Tourism Ireland recently announced that encouraging the diaspora home to trace their Irish heritage will remain a key focus in 2014 and beyond.

With hundreds of clan gatherings and family meetings taking place right around Ireland as part of The Gathering, Tourism Ireland dubbed 2013 ‘Ireland’s Family History Year’. To celebrate the success of the year, Tourism Ireland teamed up with Ireland’s largest family records database, RootsIreland.ie, for a special promotion on Facebook, which included the chance to win an ancestral holiday in Ireland over the New Year’s period. The lucky winner was Irish-American Mary Powell from Churchville in New York who has roots in Galway (the King family), Cork (McCartys) and Wexford (Duggans). As part of her prize, RootsIreland.ie arranged for Mary and her husband to visit the homestead of her ancestors in The Burrow, near Rosslare, and to meet with her long-lost Wexford cousins. She was overwhelmed by the experience and plans to return to Ireland very soon, this time with her extended family, so that they too can find out more about their Irish heritage.

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Salon Culinaire Opens for Business Taking place from March 11th to March 13th at King’s Hall Belfast, IFEX expects to host almost 250 chefs who will be taking part in 14 ChefSkills category competitions, including the Department of Agriculturesupported IFEX Northern Ireland Chef of the Year. In addition, La Parade des Chefs will feature four teams of eight, primarily from Northern Irish culinary colleges, operating in a glass-fronted, ‘real time’ restaurant setting, preparing, cooking for and serving 60 covers each.

For those who hope to compete, (l-r): Sean Owens, IFEX Salon Culinaire ChefSkills and the team event, La Parade Director, Brendan Baxter, former IFEX gold des Chefs, are now open for entry. Entry medal winner and Head Chef at Fusion, and forms are available to download at www.

Soraya Gadelrab, Event Director, IFEX at the IFEXExhibition.co.uk and must be launch of the IFEX Salon Culinaire 2014. submitted before February 8th 2014. Both The ChefSkills Theatre and La Parade de Chefs are supported by the Department for Employment and Learning (DELNI) and by Stephen’s Catering Equipment who, for the past ten shows, has provided all of the major catering equipment that the 250 chefs will use.

In addition to the DELNI and Stephen’s Catering Equipment, other supporters for the Salon Culinaire include Flogas, who will be fuelling the cooking in The ChefSkills Theatre and at La Parade des Chefs. The biennial IFEX event is set to be visited by over 5,000 industry professionals over the three days. Exhibitors include Hendersons Foodservice, Masseys for Catering Equipment, Flogas, Lynas Foodservice, Matthew Algie, Golden Glen Catering, BD Foods, Scomac, Scan Coin, Frylite, Brakes, Bewleys, Rational UK, Solmatix, Bunzl Rafferty and Bunzl McLaughlin.

News & Views Industry Gets ‘Poor Service’ Wake Up Call Leading food and hospitality authority Georgina Campbell is running a new six-day business development programme over four months which aims to help Irish tourism and hospitality businesses to develop and prosper by becoming more customeraware. The initiative has been designed and developed exclusively for this sector in conjunction with independent professional development company Conor Kenny & Associates.

“Over the last five years, perhaps partly because of damaging recessionary cost-cutting, we have seen standards fall in many areas, notably service, failing customers and causing market share to drop,” says Georgina. “While it is heartening to see visitor numbers slowly increasing once more, it is no longer good enough to hope that romantic marketing will entice a whole new generation to our shores - and, more importantly, neither can it ensure that they will enjoy their stay and wish to return. What matters most is the experience they have when they come here, and that means that poor standards and product (whether mediocre accommodation or indifferent food), poor marketing and poor service won’t be forgiven no matter how evocative the message. We are often asked for advice - ‘How can we both raise standards and make our business more profitable?’, or even ‘What do we need to do to win Awards?’. While certainly a challenge, it is one we felt compelled to answer through this programme.

Financial investment may well be required in some cases, but sometimes solutions can be surprisingly simple and inexpensive to put in place - and it usually comes down to putting the customer first.”

Speaking at the 2014 Georgina Campbell awards in October 2013, Georgina highlighted a number of trends in the accommodation sector. “Female-only floors in business hotels may well be coming this way soon and, while bling is a thing of the past of course, customer demand is motivating practical changes in bedrooms and bathrooms. The baths that were ripped out a few years ago are being replaced in many cases, and double beds are being replaced by queen size twins or the uber-comfortable new zip and links. On a more general note, tired furnishings have been very noticeable recently. This is becoming a real problem where it affects basic comforts, eg mattresses and bedding which are well overdue for replacement.”

She also highlighted the continuing problem in the industry with unregistered accommodation. “A worrying number of established businesses are opting to de-register from the Fáilte Ireland Approval scheme to reduce their cost base, most notably to avoid local rates which are often felt to be unfairly levied,” she said. “It is illegal to open accommodation for business in Northern Ireland without inspection and certification by NITB but unfortunately there is no such requirement in the Republic. Our visitors and our leading hospitality businesses deserve better. Some establishments are letting the side down and it is not a level playing field in business terms. We urgently need a simple and inexpensive system of mandatory registration, perhaps independent of Fáilte Ireland.”

The new Business Development Programme will be held at a number of venues around the country. It began on Tuesday, February 11th at The Marker Hotel, Dublin and will end on Thursday, May 29th at The Merrion Hotel, Dublin. For more information: Log onto http://georginacampbelllearning.com/ For bookings contact Linda Halpin on (01) 6633685.

Georgina Campbell (left) of Georgina Campbell Guides, and Grace Gallagher, Managing Director of Conor Kenny & Associates, at the launch of the new Hospitality Business Development Programme.

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News & Views

Madeline Wright celebrates winning the IHF Cork Branch Employee of the Year Award with colleagues from the Blue Haven Hotel, Kinsale at the IHF Cork Branch Gala Dinner in the Maryborough Hotel.

The Perfect Ambassador for Our Industry That is how the Chairman of the Cork Branch of the Irish Hotels Federation, Michael Magner, described Madeline Wright, who is about to embark on a 12-month period as an ambassador for the hotel industry in Cork as the winner of the inaugural Employee of the Year award.

Madeline, who is a hotel receptionist at the Blue Haven Hotel in Kinsale, Co Cork, was chosen from a shortlist of three candidates at the Cork Branch of the IHF tourism ball at the Maryborough Hotel recently.

Organised by the Cork branch of the IHF, the 72-member hotels and guesthouses in Cork were encouraged to put forward their nominations for the inaugural hotels’ sector Employee of the Year award. The soldout event was a huge success, with more than 300 attending the gala dinner at the Maryborough Hotel. More than 11,000 was raised for branch, promotional and marketing activities in 2014.

St Patrick’s Festival Gets €1m Grant This year’s St Patrick’s Festival has got the biggest individual festival grant for 2014 from Fáilte Ireland with €1m being made available to build on the success of The Gathering. Festival 2014 runs from March 14th to 17th with festival flagship events such as Céilí, Treasure Hunt, Big Day Out and the Parade running each day of the programme. I Love My City, the festival’s flagship cultural programme, will include a series of tailored events in key cultural institutions across Dublin City.

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Fáilte Ireland Partners with Expedia Internet-based travel website company Expedia will now display a national rating for all Irish accommodation registered with Fáilte Ireland.

Expedia hosts a number of major accommodation booking sites, including expedia.com. hotels.com and venere.com and has localised sites for 29 countries. This change means that from January Expedia will share any registered accommodation’s star rating and accommodation descriptor (e.g.

Guesthouse, Hotel, B&B) as it appears on the consumer site www.discoverireland.ie.

IHF Annual Conference At Knightsbrook Hotel The Irish Hotels Federation’s 2014 Showtel Trade Exhibition, which is part of the federation’s annual conference, will take place in Knightsbrook Hotel & Golf Resort, Trim, Co Meath on February 24th and 25th. The IHF is encouraging its 900 members to take part. “The exhibition is a must for any supplier of goods or services to the sector and places are now only available on a reserve list basis,” says IHF Showtel organiser Stephanie Keating. All-Ireland food service business, Brakes, and energy provider, Electric Ireland, were recently announced as the headline sponsors for the 2014 Annual Conference and Showtel Trade Exhibition.

News & Views

Pictured at the launch of the Dublin Coffee & Tea Festival 2014 are (l-r): Patrick Bewley, Bewleys, Garath Scully, Master Roaster for Robt Roberts, Stephen Morrissey, former World Barista Champion, and Colin Harmon.

First Ever Coffee & Tea Festival Creates a Stir The Irish Foodservice Suppliers Alliance (IFSA) and the Speciality Coffee Association of Europe (SCAE- Irish branch) recently launched the inaugural Dublin Coffee & Tea Festival, which will take place from September 12th to 14th 2014 at the Industries Hall in the RDS Dublin.

The Dublin Coffee & Tea Festival will feature The Roasters’ Village, which will house a vast range of coffee and tea mirco roasters and retailers, and The Cupping Room, a purpose-built cupping room allowing members of the public and media to cup and taste a wide variety of teas and coffees from different Origin countries for the first time in Ireland. It will also include The People’s Stage, which will showcase a range of video footage and presentations from farmers, importers, green bean traders, and coffee and tea enthusiasts, and The Festival Roastery, a micro roastery which will allow the public and media to experience the roasting process first hand.

At the Festival, SCAE will run a number of their national competitions allowing the public to view the very best in action over the three days and the National Home Barista Championships will allow the home baristas take to the stage to demonstrate their skills. In addition, The Food Village area will comprise a range of hand-picked artisan food and beverage suppliers whose product compliments the coffee and tea drinking experience.

Standing - Bernard Gibbons, Paul Thompson, Stephen Goff, Aoife O’Driscoll and Paul Farren with Joe Deignan, sitting, all from Powerscourt Golf Club, and Minister of State for Tourism & Sport Michael Ring.

Powerscourt Scoops Best Parkland Venue Award Powerscourt Golf Club has been voted the best Parkland Venue in Ireland for 2014 by the Golfers Guide to Ireland.

Located on the 1,000 acre Powerscourt Estate in Enniskerry, Powerscourt features two Championship courses designed

by Peter McEvoy and David McLay Kidd. The annual awards are organised by the Golfers Guide to Ireland, one of the most popular golf magazines in Ireland, to recognise outstanding performers in the Irish golf industry.

Castlewood House is Best Bargain in the World Castlewood House in Dingle has been named the world’s best bargain hotel by TripAdvisor as part of their 2014 Travellers’ Choice awards for hotels. Harvey’s Point in Donegal Town was named by TripAdvisor as the top hotel in Ireland. The Killarney Park Hotel was named top luxury hotel, while Kelly’s Resort Hotel & Spa in Rosslare won the best family hotel category. Meanwhile, Bay View House Bed & Breakfast in Clonakilty was named Ireland’s best B&B. Overall, Ireland’s best performing town was Killarney, home to 16 winning properties in this year’s awards more than Sydney, Bangkok and New York.

For the complete list of 2014 TripAdvisor Travellers’ Choice awards for hotels winners, go to www.tripadvisor.co.uk/ TravellersChoice.

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On The Move

On the Move New Appointments, Promotions and Recruitment Laura Kelly Joins the Family Business The fifth generation of the Kelly Family, Laura Kelly, is returning to take the helm beside her father Bill, and grandmother Breda Laura Kelly Kelly, at Kelly’s Resort Hotel in Rosslare. The eldest daughter of Bill and Isabelle Kelly, Laura joined the management and staff of Kelly’s when it reopened its doors on February 14th.

Laura has gained vast experience both in the business and tourism sector through her studies in UCD and later in the Hotel Management School of Switzerland.

After completing her degree in Commerce and Italian, Laura decided to further her education by applying to the famous Ecole Hôtelière de Lausanne. Travelling to many parts of the world, Laura has gained invaluable work experience in Singapore, New York, London, and recently with Club Med in Turkey and Morocco.

New GM at Fitzpatrick Castle Hotel Mark Scott Lennon is the new General Manager at the Fitzpatrick Castle Hotel where he will be responsible for overseeing the day-to-day running Mark Scott Lennon of the hotel. Mark was appointed a Director in 2012. He continues the Fitzpatrick family’s hotelier tradition into a third generation, following in the footsteps of his grandparents, Paddy and Eithne Fitzpatrick, and his mother, Eithne Scott Lennon. Mark, who has been working at the hotel since he was 16 years old, has a BA in Economics and Politics from University College Dublin. While in UCD, Mark worked abroad during the summer months at the Marriott Renaissance Hotel in Vancouver and Gurney’s Resort & Spa in Montauk, New York. After his graduation, Mark began the management trainee course at Fitzpatrick Castle Hotel where he gained experience working across all

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departments. While working as a Duty Manager and as a member of the sales and marketing team, Mark completed a Masters in Hospitality at Dublin Institute of Technology.

New Business Manager at Noel Recruitment Jerry O’Sullivan has been appointed Business Manager for the Permanent Hospitality Division at Noel Jerry O’Sullivan Recruitment. The Killarney man is synonymous with hospitality recruitment along with training, auditing, food safety and compliance.

Noel Recruitment has been awarded Nationwide Hospitality Recruitment Agency of The Year for the sixth year in a row. The Noel Group consists of Noel Recruitment, Orange Recruitment, and Skills Team Training Solutions. The Group has branches in Dublin, Kildare, Cork, Waterford, and Galway.

Industry Veteran Spearheads Viceroy New York Irishman Gerard Denneny has been appointed as General Manager of the new Viceroy New York Hotel. Gerard was Gerard Denneny responsible for overseeing the successful launch of the 29-storey, 240-bedroom hotel on West 57th Street in October 2013. A graduate of the Dublin Institute of Technology, Mr Denneny holds a BSc in Hotel and Catering Management and has over 20 years of management experience in luxury hotel properties all over the globe. Most recently, Gerard was the General Manager at the then Jumeirah Essex House New York. Previously, he held senior positions at the 5-star property Jumeirah Carlton Tower in London and the Four Seasons Hotel in Dublin. Prior to that, he worked with some of Ireland’s finest hotels, including The Merrion Hotel, The Morrison Hotel and The K Club.

International Property Consultants Savills Dublin 33 Molesworth Street Dublin 2 +353 (0) 1 618 1300

Savills Cork 11 South Mall Cork +353 (0) 21 427 1371

Savills Belfast 32-36 May Street Belfast +44 (0) 28 9026 7820

Cork Hotel Opportunity – Leading 4 Star with 78 Bedrooms

For Sale by Private Treaty

Oriel House Hotel, Ballincollig, Cork z z z z z

z z

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Modern 4 star hotel with 78 bedrooms The only hotel in Ballincollig – a thriving suburban Cork town Located c. 10 minutes from Cork City Centre and c.15 minutes from Cork International Airport Impressive Conference & Banqueting facilities Excellent Leisure Club and Spa facilities including 25m swimming pool and gym with over 1,400 members Strong corporate base – employers in Ballincollig include Abtran, EMC2, Trend Micro and VMware Very profitable business with excellent growth potential in the vibrant Cork market with Trending.ie reporting RevPAR growth of almost 10% in 2013 BER no. 800212631 Contact

Tom Barrett Brooke Sheehan Denis O’Donoghue

+353 (0) 1 618 1415 +353 (0) 1 618 1373 +353 (0) 21 490 6118

tom.barrett@savills.ie brooke.sheehan@savills.ie denis.odonoghue@savills.ie

In 2013, Savills completed almost 60% of all hotel sales by value in Ireland.

Whatever the value of your property, we have the experts to look after you.

Call the Savills Hotels & Leisure Team today.

Anna Gilmartin Surveyor

info@savills.ie

Aisling Waldron Hotel Analyst

Denis O’Donoghue Associate

Tom Barrett Head of Hotels & Leisure

Brooke Sheehan Senior Surveyor

Aaron Spring Surveyor

Jennifer Warren Surveyor

savills.ie

key to the door

Key to the Door Openings, Closures, Refurbishments and Acquisitions

The Dawson Brasserie on 35 Dawson Street, Dublin 2.

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Dawson Brasserie Open for Business Since opening its doors in November, The Dawson Brasserie on 35 Dawson Street, has experienced an ‘unbelievable’ reception from guests and the general public. That’s according to its new owners Shane Mitchell and John and Rebecca Quinn, who are also the proprietors of Asador on Haddington Road in Dublin 4. Paul McNamara, formerly of Chapter One, heads up the kitchen. Shane Mitchell spent over eight years working in telecoms and finance before moving in to the catering industry in 2008.

He worked in The Cliff Town House on Stephen’s Green for two years, over-seeing the re-branding from Bentley’s Oyster Bar & Grill to the CTH. He subsequently joined the team at Peploe’s Wine Bistro where he worked as Restaurant Manager for

hotel & catering review

over two years. John Quinn is Managing Partner of Avar Capital and is the former managing director of JD Champion Ireland, a subsidiary of JD Sports Fashion plc. Rebecca Quinn has over 10 years’ experience in the hospitality industry where she worked as a General Manager. The front of house team is headed by General Manager Ewan McDonald who has worked in the hospitality sector for over 12 years. Previous tenants at 35 Dawson Street include Café Clara, La Stampa and Balzac.

Blarney Golf Resort on the Market for a2.5m Tom Barrett of Savills has been appointed to sell the Blarney Golf Resort in Blarney, Co Cork on behalf of the Receiver Billy O’Riordan of PricewaterhouseCoopers. The 61-bedroom four

key to the door

star hotel is situated on approximately 68 hectares (168 acres). The hotel, which opened in phases from December 2005 to July 2006, comprises 61 bedrooms, a bar, restaurant, and conference and banqueting facilities. The main function room can cater for up to 200 people. It has a fully-equipped leisure centre which features a 20 metre pool, kiddies pool, sauna, steam room, Jacuzzi and gym, which currently has approximately 700 members. The championship 6,712 yard, par 71 golf course was designed by renowned golfer John Daly. The golf club currently has approximately 350 members. Savills are offering this freehold property for sale by private treaty with a guide price of a2,500,000.

Oriel House on the Market for a6m Oriel House Hotel, the only hotel in Ballincollig, is for sale at an asking price of a6m. Savills Hotels and Leisure have been appointed to sell the property on the instruction of Kieran Wallace, Receiver, KPMG. The hotel, which has a four star rating, was extensively redeveloped and extended in 2006.

It features 78 bedrooms, two bars, a restaurant, conference and banqueting facilities for up to 480 people, and a leisure club featuring a 25 metre swimming pool and spa. It is situated on a site of approximately 2.3 acres and has approximately 250 surface and underground car parking spaces.

According to Trending.ie, the hotel market in Cork city experienced RevPAR growth of 10% in 2013.

Tom Barrett, Director of Hotels and Leisure at Savills, says the estate agents sold five Cork hotels in the past 15 months, including the Ambassador Hotel, Cork International Airport Hotel, the Kingsley Hotel, Radisson Blu Little Island and The River Lee Hotel.

Red Carnation Hotels Acquires Lisloughrey Lodge Receiver Kieran Wallace of KPMG has sold Lisloughrey Lodge in Cong, Co Mayo, to Red Carnation Hotels. The sale of the four star boutique hotel was advised by Savills and the hotel was marketed at a guide price of a2.5m. Lisloughrey Lodge, located adjacent to the Ashford Castle Estate, features 50 bedrooms and suites, The Quay bar, Wilde’s restaurant, conference and banqueting facilities, a fitness centre and treatment rooms. In 2013 Red Carnation Hotels acquired Ashford Castle, which is currently undergoing a multi-million euro refurbishment. The Irish hotel transaction market was very active in 2013, recording a total investment volume of approximately a200m,

and Savills Tom Barrett says the agency advised on almost 60% of deals based on value. Properties included Sheen Falls and the Clarion Hotels at Dublin Airport and IFSC.

Kennedy Wilson Buys Shelbourne Hotel Debt International real estate investment and services firm Kennedy Wilson has completed the purchase of notes with an unpaid principal balance of approximately $310m secured by The Shelbourne Hotel in Dublin.

The company acquired the notes for $152m. The purchase price consisted of $70m of equity from the company and $82m in bank financing.

Kennedy Wilson, together with its institutional partners, has acquired approximately $11.2bn of real estate and real estate related debt globally since the beginning of 2010, including $1.5bn in Ireland. Bank of Ireland and IBRC’s predecessor Anglo Irish Bank combined to lend more than a200m to a group of Irish developers to buy and refurbish the Shelbourne in 2004. Shelbourne Hotel Holdings, which owns the property, valued the hotel at a86.5m at the end of 2011, compared with a246m in 2007, according to filings with the Companies Registration Office. The filings show that the firm had total debts of a289m.

Donald Trump Buys Doonbeg US property mogul Donald Trump has bought The Lodge at Doonbeg and Doonbeg Golf Club for an estimated a15m. It will be rebranded Trump International Golf Links, Ireland. The Lodge at Doonbeg consists of 218 hotel suites, a spa and several restaurants, all of which will be managed directly by Donald Trump’s hotel management company, the Trump Hotel Collection. The billionaire New Yorker has a range of golf interests around the world, including Scotland. Luke Charleton and David Hughes of EY were appointed joint receivers to the business in January.

Oriel House Hotel, Ballincollig.

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Cover Story

Where Do We Go From Here?

Maev Martin talks to three of the industry’s key figures about how Irish tourism can sustain and build on the growth in visitor numbers and occupancy rates achieved during 2013.

Obstacles to Growth 2013 was the year when growth returned to the Irish tourism and hospitality sectors after a long and torturous drought. But are there major hurdles that Irish tourism needs to overcome in 2014 in order to keep the momentum alive and ensure that visitor numbers equal or exceed those of 2013? “North America, Germany, France and Britain are the markets that will generate growth and that poses a challenge for a lot of businesses that are still dependent on the domestic market, particularly hotels outside Dublin,” says Fáilte Ireland’s Chief Executive Officer Shaun Quinn. The UK market has experienced a drop of one million in annual visitors since 2007.

“While we recovered by about 5% last year we are still way down on where we were so growing the UK market is one of the industry’s biggest challenges. There is a particular challenge for tourism businesses to become more adept in the Internet space because an increasing number of transactions are taking place online. You can be price competitive but if you aren’t closing the sale in the area that people are looking to close the sale then you won’t get the business. We also know that there are segments in our key markets

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Like Fáilte Ireland, promoting the Wild Atlantic Way will be a major focus of Tourism Ireland’s activity around the globe in 2014.

that need to have a more tailored offering. We can’t sit back on the growth figures achieved in 2013 – the business is there to be won but we have to be smarter and more aggressive to win it.”

Niall Gibbons, Chief Executive of Tourism Ireland, cites maintaining our competitiveness with other destinations as one of the key challenges for the industry during the year ahead, along

“ With visitors up 7% following a very successful year of The Gathering, there is now a renewed confidence among hotels and guest houses, many of whom are more upbeat about the prospects for their businesses.”

Cover Story

with ensuring value for money for our overseas visitors. “Access is another critical factor - we know there is a direct correlation between direct access to Ireland and growth in visitor numbers,” he says. “Tourism Ireland will be working hard to maximise the promotion of new and existing air and ferry services to Ireland to drive demand for those services.”

Getting Our Priorities Right The Wild Atlantic Way will be officially launched in March and its development is a key priority for Fáilte Ireland this year. “We see it as more than a driving route – it is a brand to reposition the west of Ireland,” says Shaun Quinn.

“The areas most dependent on the home market are located on the west coast so we are putting a lot of resources behind that brand.

The second priority is Dublin – the capital is doing well in the business traveller area but there is room for improvement in leisure traveller numbers so we need to

Fáilte Ireland CEO Shaun Quinn speaking at the organisation’s Annual Tourism Industry Review on January 9th.

reposition Dublin internationally as a stronger brand. The third area is the south and east which are regions that are very strong in terms of their built heritage. The market is interested in consuming this product but it needs to be packaged better. In addition, we believe there is further growth to be had in business tourism. In the last couple of years we have been successful in securing large conferences and meetings for Ireland and we believe that the incentive business is on the way back, which is good news for the industry.”

Like Fáilte Ireland, promoting the Wild Atlantic Way will be a major focus of Tourism Ireland’s activity around the globe in 2014.

Niall Gibbons says that Tourism Ireland will also capitalise on the tourism potential of major events like Limerick City of Culture, the ‘Grande Partenza’ or ‘Big Start’ of the Giro d’Italia, as well as the Croke Park Classic, when the University of Central Florida takes on Penn State in their

college football season opener.

“The greatest investment will be in markets which deliver the best return, in terms of holidaymaker numbers and revenue i.e. North America and Mainland Europe,” says Niall Gibbons. “The organisation will have a busy programme of promotions in Britain, which remains our largest market in terms of overall visitor numbers, and new and emerging markets of high potential will be targeted, including Brazil and Russia, where Tourism Ireland will have representation for the first time ever in 2014. The segmentation of consumers in our markets - introduced successfully during 2013 in Britain and the US - will be rolled out across all markets in 2014, beginning with Germany, France, Canada and Australia.”

Tourism Ireland will target three key audiences -‘Social Energisers’, a younger, fun-loving audience looking for an exciting time in a vibrant destination, ‘Culturally Curious’, an older audience that wants to explore new places and broaden their minds, and ‘Great Escapers’, an audience interested in rural holidays, wishing to ‘take time out’. Niche segments will also be targeted, including golfers, business and incentive visitors.

“Communications will be targeted more closely to their particular needs and interests, and those of their friends (particularly on social media), and will have ‘share-ability’ to ensure greater reach,” says Niall Gibbons.

“Topical messages and special offers that will trigger ‘book now’ impulses will be communicated on a regular basis – whether it’s highlighting an upcoming U2 concert in Dublin, golf around a ‘Major’ win by one of our golfing champions, or ‘surf ’s up’ on the west coast.”

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Cover Story

The Return of JLCs – A Barrier to Employment IHF Chief Executive Tim Fenn says that cost competitiveness remains a significant challenge.

“This is an issue that the IHF is continuing to engage directly with Government on this year across a number of fronts, including local authority rates and the Joint Labour Committee system ( JLCs),” he says. “The current funding of local authorities is based on an antiquated system that sees taxes being extracted relative to the size of the premises without sufficient recourse to the profitability of the business operating in that property. With hotels paying a90m a year in rates alone – a1,500 on average per bedroom, regardless of trading circumstances – these excessive charges are crippling many hotels and guesthouses.

We also have the situation now where we have a return to JLCs at a time when we have one of the highest minimum wages in Europe. JLCs by their very nature are complex and inflexible and they impose unnecessary barriers to employment, particularly at entry level. Our industry does not need any additional employment regulation.”

Growing Regional Hotel Business While Dublin hotels had a great 2013, growth in the regions has been at a markedly different pace. Can anything be done to redress the balance in 2014? “The Wild Atlantic Way is designed to bring more overseas tourists into the west of Ireland,” says Shaun Quinn. “We will invest a8m into further developing the Wild Atlantic Way this year. We have spoken to operators overseas and we have shown them the proposition and the feedback

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has been amazing so we are confident that it will stimulate growth for the west of Ireland, including hotels in that region.

We bid for and secured the World Adventure Summit in October which will bring in about 700 tourism operators and that will further broaden the appeal of the west.” Tim Fenn says that the IHF is working closely with Failte Ireland and with Tourism Ireland to give tourists new reasons to visit the regions. “One thing The Gathering has highlighted is the need for us to be more imaginative in how we market Ireland abroad, giving holidaymakers new and compelling reasons to venture out of the main holiday hot-spots,” he says. “The Wild Atlantic Way is an excellent example of this and has the potential to re-energise tourism along the entire west coast this year.”

The NAMA Effect Since the onset of the financial crisis back in 2008, a significant number of hotels have come under the control of financial institutions, including foreignowned institutions seeking to exit the market, domestic banks and NAMA. There have been periodic reports in recent years that NAMA is distorting the market by keeping a huge number of failed businesses alive. However, Shaun Quinn maintains that this isn’t as big an issue as it was a few years ago.

“The issue about competition is still there and will remain for a while but it isn’t anything like it was a few years ago and that is because tourism has recovered,” he says. “The best approach to addressing any distortion in the market is to grow our way out of it.” Tim Fenn believes that it is essential for hotels to exit from under the control of financial institutions and for ownership

to be restored to those who have a long-term interest in the industry. “A vibrant tourism industry needs a functioning banking sector,” he says. “There is a pressing need to address excessive levels of overhanging debt which, as of the end of 2012, was estimated to stand at a6.7bn. Over a third of this is in the process of being restructured, refinanced or recycled. Another major issue facing hotels and guesthouses as recovery takes hold is reduced access to finance and credit facilities, which are essential for ongoing investment in the refurbishment of premises, employment of additional staff and increased marketing activity.

However, with visitors up 7% following a very successful year of The Gathering, there is now a renewed confidence among hotels and guest houses, many of whom are more upbeat about the prospects for their businesses.”

PROFILE

The Local at

Dunbrody

A local pub reminiscent of an Emergency-era shebeen is not what springs to mind when you think of a Blue Book country house hotel and estate.

But that is the most recent addition to Catherine and Kevin Dundon’s operation and business is booming. Maev Martin reports.

Set in 300 acres of parkland in Arthurstown on the Hook Penninsula in Co Wexford, the 24-bedroom Dunbrody House offers a fine dining experience for guests in an exquisite country house environment. And while ‘The Local’ public house is not what some might expect, it is in keeping with what the Dunbrody operation is all about – rest and relaxation without pretension. “Often one part of our operation is quiet, particularly at this time of the year, but all aspects of the estate – the hotel, the spa, the cookery school and our new licensed premises are busy,”

says Catherine Dundon. “And the hotel was fully booked for the month of January, which is a new but welcome development and a reflection of the turnaround that has occurred in our industry in recent months.”

The Local public house opened its doors to customers in late 2013. “I think we are the only Blue Book member with a standalone public house on our estate,” says Catherine. “The only promotional activity that we engaged in for the pub was on Facebook but it has generated a whole new market for us. Since we opened it has been

The Local at Dunbrody

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PROFILE

Kevin prepares a plate.

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absolutely rocking with a huge amount of local business coming through the door. It has been way more successful than we could have anticipated.”

An old bicycle and lights enclosed in jam jars hang from the ceiling and advertisements from yesteryear adorn the walls but there is a modern twist – a rustic looking kitchenette at the back of the bar featuring a traditional stove pizza oven from Italy which provides Margherita pizzas, a local burger, beer battered fish and chips and garlic prawns. Everything is under a10. “All the food served in The Local is prepped in Dunbrody and our baps are freshly baked to Kevin’s recipe,” says Catherine. “Desserts include apple crumble and we recently introduced a new dish – roast chicken with homemade chips and salad.” The Dundons also operate a complimentary shuttle bus service during the last two hours of opening time which runs every half hour to Arthurstown, Campile, Ramsgate and other towns in the surrounding area. And there’s live music to entertain the punters.

So why did they decide to open a traditional, standalone pub on the estate? “We thought that our spa or cookery school would generate local business but they don’t and the local pub in Arthurstown closed 18 to 19 months ago so that left a huge gap in the area,” says Catherine. “There was no sign of the pub re-opening and the nearest pub was in Duncannon.

Also, we were looking to create a new market for what we do. We thought about putting self catering cottages in our courtyard area or setting up a farmer’s market but in the end we decided to convert our old outbuilding – a coachhouse where cars were serviced - into a pub. It’s a low key, casual pub which is open four nights a week – Thursday, Friday, Saturday and Sunday - and we will probably open seven days a week in high season. The pub opens at 4pm and is ticking over by 5pm with families coming in to dine. An hour

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later we get an older clientele and they are usually gone by 9pm when the young people come in. The pub in Arthurstown village that closed was frequented mainly by men but in our pub I see all the ‘GAA Mas’ and mums from school and lots of couples who didn’t frequent the previous pub on a regular basis so it is great to see them coming here from Passage East, Campile and other areas, as well as Arthurstown.”

According to Catherine, the pub currently constitutes 15% to 17% of the estate’s turnover and they have plans to further expand their drinks offering. The bar at Dunbrody House already serves craft beers from The Dungarvan Brewing Company and Longueville Artisan Cider from fellow Blue Book member Longueville House in Mallow.

“We want to bring craft beer in on draught in The Local,” says Catherine. “But Kevin is also looking at developing our own brand of craft beer on draught.

We hope to do it this year. He is working with Richard Corrigan on this. Richard wants to be able to offer an Irish craft beer in his restaurant, The Bentley, in London and he wants to offer it in The Park Hotel in Virginia, which he purchased recently.”

Star Ratings There are now 10 Michelin starred restaurants in Ireland, the latest being Campagne and The Lady Helen Restaurant at the Mount Juliet Hotel, both of whom joined the exclusive club last year. Is this an accreditation that Dunbrody House has in its sights? “I don’t think a Michelin star would bring us that much more business,” says Catherine. “In fact, it might even put people off. We are a country house so we can be more informal and relaxed. The Irish establishments that have secured Michelin stars so far are mainly restaurants. However, a lot of pubs in the UK and France have the Bib Gourmand accreditation (for exceptional food offered at reasonable prices) and we would be looking to get Bib this year. The Local isn’t a gastro pub – it is more like having a really good chipper in a pub – but it is about applying the attitude to taste and flavour that we have in the hotel to the pub scenario.”

Food Tourism Is Ireland likely to acquire the reputation for quality fine dining that countries such as Spain and Denmark have achieved in recent years? “If we can keep the Monsantos out and protect what we do it is a realistic proposition,” she says. “Given the quality of food that is produced in this country it should be an easy sell for Bord Bia and Tourism Ireland.

US visitors who taste good Irish food are really impressed. We have found that they rave about the

PROFILE

Wexford strawberry and the quality of our carrots and that is because they don’t have access to the ingredients that we have access to in Ireland. For example, in Raglan Road Irish Pub and Restaurant in Disney, Florida, which features a modern Irish menu by Kevin, the fish comes from Boston and that is the best they can get! There is a perception of us as a great food island with great produce but the challenge is to encourage foreign journalists to experience the Irish restaurant product to help get the message across and change perceptions.

In conjunction with Bord Bia and Bord Iascaigh Mhara, Dunbrody House ran site visits and demonstrations for Scandinavian journalists a couple of years ago so they could experience Irish shellfish.

If there was more of that type of activity it would help to build a bridge in peoples’ minds between the good food and the restaurant dining experience.

Apart from traditional media, social media is a great forum for getting the good food in Ireland message out there, particularly Irish food bloggers’ events.”

Locally Sourced Locally sourced ingredients are very important to Catherine and Kevin. “The fish served in Dunbrody House comes from Kilmore Quay to as far as Dunmore East,” says Catherine. “Our shellfish is from Duncannon, our vegetable supplier is in Campile

which is four kilometres away, and we produce a lot of our own vegetables. We have an old style herb garden at Dunbrody so if, for example, the mint leaves for the Mohitos are running low in the bar we can just pop out to the garden and get some. Our duck is Skeaganore Duck from West Cork and our cheeses are from all over the southeast of the country. Our venison comes from Glendine House across the road and from Wild Irish Game in Wicklow.”

Dunbrody House

Outlook 2014 Catherine says that pressure on room rates and people deciding not to eat out were the two big problems they had during the recession but they noticed a change in late autumn 2013. “People weren’t negotiating as much on the phone or complaining about the rate,” she says.

“Also, customers were drinking bottled water in the restaurant again, ordering wine and cocktails in the bar, and champagne before dinner and all of a sudden we were back to telling people that we were fully booked.

We get a mix of nationalities at Dunbrody House but most of our visitors are domestic and from the UK. They love this type of heritage property in the UK but it can be difficult to capture those visitors and sell effectively to them so we are currently trying to figure out how to do that better this year. We will also be looking to consolidate and build on the US business that is coming through.”

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Irish Food

Diners Urged to Look for Food Origin Information Belleek Castle in Ballina, Co Mayo, was named as the Just Ask Restaurant of the Year at the launch of Bord Bia’s Just Ask 2014 campaign, which encourages diners to ask where their food comes from and urges restaurants to provide this information on menus.

Recent research from Bord Bia (The Foodservice Channel Insights Report, a consumer survey carried out by Mintel during September 2013) shows that when it comes to dining out, consumers rate value for money and efficient service as the key factors when choosing a venue. Another priority for Irish diners is the importance of supporting the local economy.

The availability of local produce on the menu featured in the top three influencing factors when selecting a restaurant, pub or hotel.

“Our philosophy is to use local, seasonal ingredients from our land, sea and air which wouldn’t be possible without our fantastic local producers and suppliers,” says Belleek Castle’s Head Chef Stephen Lenahan. “Winning the monthly Just Ask award back in March 2013 has really made a difference – our restaurant is busier and our customers are interested in talking with us about our sourcing and suppliers. We’re absolutely thrilled to have been chosen as the overall winner for 2014 and we appreciate how lucky we are to have such a wealth of high quality produce on our doorstep.”

Dry-aged in-house, the restaurant’s beef is sourced from local farmers and supplied by Michael McHale in Castlebar and Michael Carr in Ballina who

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also supply Belleek Castle with lamb, pork, bacon and chicken.

Game is supplied by Pat White in Claremorris and Wild Irish Game in Co Wicklow. Most of the fish is sourced from Joe Garvin of Ballina and gravlax is produced in-house. Paddy Ward in Co Donegal supplies fresh crab, while mussels are picked

by Padraig Gannon in Achill Island.Vegetables and organic herbs are supplied by Enniscoe House in Crossmolina and Alfred Devers from Ballina, and seasonal produce grown in a polytunnel on the castle grounds is also used.

“I’m delighted that we’re in a position to recognise Belleek Castle for the effort that they have put into working with and sourcing from local suppliers,”

says Maureen Gahan of Bord Bia. “The development of their polytunnel on the grounds of the castle is just one example of the commitment by Stephen and his team to the philosophy behind the Just Ask campaign. Not only can diners enjoy the freshest food but they can also play their part in supporting the local economy. It’s very encouraging to see the rise in support for the Just Ask campaign over the past five years.”

First launched by Bord Bia in 2009, support for the Just Ask campaign has grown significantly among the restaurant trade in recent years. It acknowledges eateries around the country that display a commitment to transparency with regard to the sourcing of the ingredients they use.

Kieran Fox, Yvonne Kathrein, Maya Nikolaeva and Stephen Lenahan in the polytunnel at Belleek Castle.

Irish Food

Food & Drinks Exports Approach

a10bn for First Time Irish food and drink exports were worth a9.99bn last year, according to figures released by Bord Bia last month. This means that food and drink exports are now almost a3bn higher than they were in 2009.

The value of Irish food and drink exports approached a10bn for the first time in 2013, according to figures released by Bord Bia on January 8th. This represents an increase of nine per cent on the previous year and 40% in the last four years, with revenues almost a3bn higher than in 2009. Export values for dairy produce and ingredients exceeded a3bn for the first time and strong performances for meat and livestock (a3.3bn) and prepared foods (a1.65bn) all contributed to the positive outcome.

Key Markets The UK remains the largest export destination for Irish food and drink with 42% of exports worth an estimated a4.1bn reaching that market in 2013. Exports of food and drink to other EU markets increased by 11% in 2013, reaching a3.2bn, with the key markets of Germany, France and the Netherlands all recording double digit growth. Exports to China grew by over 40%, with values trebling over the last three years to reach a390m in 2013.

It is now Ireland’s sixth largest market overall, driven in particular by strong dairy and pork exports.

Seafood and beverage exports are also growing solidly, albeit from a lower base, while eventual access to the beef market will act to further broaden the industry’s presence in the world’s fastest growing market.

Bord Bia says that the market environment for Irish food and drink remains positive for the year ahead, boosted by the strong growth recorded in 2013. A further rise in output is expected across key sectors and ongoing strong demand is anticipated in emerging economies. In a Bord Bia industry survey carried out among Irish food and drink manufacturers more than eight out of 10 reported higher or similar turnover in the last 12 months. Innovation remains important for many food and drink companies with 91% of exporters reporting that they had introduced new products in the last three years. 75% of exporters expect their export sales to grow in 2014.

Key Initiatives Bord Bia will participate in fifteen trade exhibitions in 2014 which will attract in excess of 800,000

business executives in Europe, Russia, the Middle East and Asia.

These include Gulfood, the world’s biggest annual food and hospitality show, which takes place in February in Dubai and is expected to attract over 77,000 food buyers from around the world.

Bord Bia plans to invest almost a3.5m during the year in a new targeted marketing campaign under the ‘Origin Green’ banner to promote Ireland as a source of world-class sustainably produced food and drink. The ‘Origin Green’ sustainability programme, which was launched in June 2012, now encompasses 37,000 farms and more than 290 companies, accounting for 85% of Ireland’s food and drink exports. Origin Green ambassadors include Glanbia, Dawn Meats, Kepak, Irish Distillers, the Irish Dairy Board, and Kerry Foods.

Aidan Cotter, Chief Executive, Bord Bia with Bord Bia Chairman Michael Carey at the launch of Bord Bia’s export figures on January 8th.

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Feature

Are We Witnessing the Birth of the Celtic Cub? iStock/thinkstock.com

Donagh Davern reports from the Irish Hotel Property Conference which took place on December 10th in the Double Tree by Hilton Dublin Burlington Road.

I am sitting in the newlybranded ‘Doubletree by Hilton Dublin - Burlington Road’ along with over 150 other delegates ready to listen to a range of speakers at the Irish Hotel Property Conference. To most of the attendees, they are still sitting in the Burlington – or

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the ‘ Burlo’ as it was affectionately known – but the newlyrefurbished lobby, bar, restaurant and meeting space, along with the hard-hat-wearing construction workers in the car park, point to the change underway.

While Peter Malone introduces the first speaker to the stage,

down the road in the RDS, 1,000 people queue to bid on property in the latest Allsop auction. With hoteliers, brand representatives and bankers mixing at the first of the day’s coffee breaks at the conference, and the gavel falling on the first of the property sales in the Allsop auction, I have to

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remind myself that this really is Ireland! Could it be that we really are getting back to normal in the Irish hospitality industry; could we have turned the corner?

Market Uplift The first speaker is Naoise Cosgrove, a Partner in Crowe Horwath. He sets the positive tone that punctuates the entire day by outlining the RevPAR growth rates so far this year of 10% in Dublin, nine per cent in Cork, seven per cent in Galway, and even five per cent in Limerick – a market where we are constantly warned about the oversupply of hotel rooms. His talk highlights the uplift in the Dublin market, with the Convention Centre Dublin having already welcomed 800,000 delegates and generated a50m in GDS revenue in the 12 months to October. He also compliments the government’s decision to maintain the lower VAT rate of 9% to help tourism drive business. And why wouldn’t they, when the sector accounts for 3% of GDP and employs 170,000 people at a time when unemployment is one of our biggest challenges.

hotels. He said that the motivation to buy an Irish hotel was a mix of Ireland’s perceived positive turnaround, stabilised trading conditions, the return of the debt markets, and obviously the expectation of stronger returns and a perception of ‘exceptional value’. The significant discount in terms of replacement value versus pricing was also an important factor, he believed, particularly for clients from the Far East. Major sales throughout the year which

were highlighted included the Trinity Capital (a35m) to US investors; Fota Resort (a21m) to Chinese investors; Ashford Castle (a18m); The Ritz Carlton; Sheen Falls Lodge (a5m) to UK investors; Glenlo Abbey (a4m) to Irish investors, and Kilkea Castle (a3m) to US investors with Irish partners. Mr Collins emphasised that we would not see the return of the ‘Celtic Tiger’ but that maybe we were witnessing the birth of the ‘Celtic Cub’!

Next up was Paul Collins, Head of Brokerage with CBRE. He is delighted to announce that hotel trading is now at three per cent to four per cent of the stock of 856 registered hotels in Ireland, which is back to pre-boom levels, but his delight is tempered by the much lower prices achieved and his estimate that there is still ‘five years of distressed selling yet’ to take place. Although the hotel buyers this year were dominated by investors from the US, there were also purchasers from China, the UK and Switzerland, and even the Irish themselves bought

iStock/thinkstock.com

Industry Facing 5 Years of Distressed Selling

“ Although the hotel buyers this year were dominated by investors from the US, there were also purchasers from China, the UK and Switzerland, and even the Irish themselves bought hotels.” hotel & catering review

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A Successful Acquisition Next onto the podium was Michael Regner, CEO of the Martinez Hotel Group, who took us through the selection, acquisition and re-launch of The Morrison Hotel – now also part of the Hilton branded family.

The a7m renovation over two and a half months is now behind them and the property has already increased market share by 33.4%, RevPAR by 59.6%, and total revenue by an impressive 34%. The hotel has also climbed from number 47 in Dublin on Tripadvisor pre-purchase to a number seven ranking, just three short months after reopening. Mr Regner explained their reasons for choosing Hilton’s Doubletree brand for this designer hotel, outlining the access to Hilton Honours members, the access to Hilton’s GDS capabilities and their flexibility in keeping the brand and ‘DNA’ of The Morrison intact. He said that this has given the hotel ‘the best of both worlds’.

More positivity followed as short presentations by Nikki O’Donnell of NODA – the Morrison Hotel’s designers; Charlie Sheil of The Marker – Ireland’s first new hotel opening in three years, and David Monks of the Doubletree by Hilton on the Burlington Road, gave us an insight into renovations and re-brandings. In the case of the latter, increased conference enquiries have resulted in the recruitment of three new staff for this area, with Hilton conference

Who can provide the ultimate branding solution for Irish hotels?

enquiries exceeding their own self-generated enquiries in the first six months of rebranding.

The Ultimate Branding Solution A panel discussion then took place where representatives from international brands such as Starwood and Worldhotels ‘battled’ with our home-grown brands of Great National Hotels and Dalata to see who could provide the ultimate branding solution for Irish hotels. It was clear from the debate that the brands now did a lot more research before agreeing to appear over the door of an Irish hotel, with Niall Kelly of Starwood claiming that in the boom years ‘people made decisions without doing their homework’. Pat McCann of Dalata complimented the Hilton brand who ‘stayed and fought the good fight’ but warned that hoteliers have to look at the cost of maintaining a brand year after year. He also mentioned what he termed the ‘dilution’ of the big brands in a market where customer loyalty was changing rapidly and said that these big brands are now

“ It was clear from the debate that the brands now did a lot more research before agreeing to appear over the door of an Irish hotel.”

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hotel & catering review

reinventing themselves. Some concern was expressed at the levels of commission paid to third party websites but it was agreed that at least with commission, unlike other marketing costs, you know that you are getting a return.

At lunchtime, bankers, financiers, hoteliers and potential investors all mingled freely. The Irish management companies such as TIFCO, Dalata, Carlton and Great National, were all there. In addition, representatives from brands such as the Wyndham Hotel Group, with over 18 brands in their portfolio, introduced themselves to the event with the hope of forming some future alliances.

After lunch Hugh Taylor of Michels & Taylor Asset Management took to the stage and explained that they would not be a management company but a brand company. Having explained that they would be registered in Ireland and have a dedicated team based in Dublin, it was disappointing that the actual brand name was not launched as the company are already about to take over the management of the Citywest Hotel.

Owen Travers of AIB Corporate Banking – one of the conference sponsors – emphasised the bank’s ‘long standing relationship with the hotel and hospitality sector’ in Ireland, a relationship which ‘we take very seriously’. He outlined the banks need for a ‘clear business plan’ when considering any hotel

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financing and that cash-flow rather than loan-to-value rates was now their focus when considering loans. It was good to see a mention of loans they had already approved for clients for capital investment in areas such as energy efficiency projects and the words ‘overdraft facility’ were even mentioned in the presentation. This will be a welcome return for the many seasonal hoteliers who relied on the overdraft to get them through the winter in the past!

NAMA Will Not Support Non-Viable Hotels Patrick Ryan, Senior Property Advisor for Hotel and Leisure with NAMA, was the last individual speaker of the day. The fact that his key remarks made the front page of The Irish Times business section the following morning shows the importance of his comments. He attempted to dispel some of the ‘myths’ bandied about regarding NAMA by emphasising that NAMA will not support non-viable hotels. He said that NAMA have the utmost respect for hotel jobs and hotel suppliers’ income but ‘won’t pump cash into a loss making business’.

“NAMA has security over just 13% of the Irish hotel industry” he said, and has raised a160m in hotel asset and loan sales to date. Limerick, he explained, is ‘a challenged area’ in terms of the hotel market and he said they had ‘significant exposure’ in the city. He went on to explain that the Competition Authority has

investigated NAMA a number of times and found that they have no case to answer in terms of their alleged dominance in the Irish hotel market. His criticism of the burden which local authority rates place on Irish hotels was welcomed by the audience. Mr Ryan also outlined the number of hotels which are in NAMA’s hotel portfolio by province and referred to the recent publicity which the incomplete hotel in Kilternan has received, saying he would be more than happy to speak to anyone in the room who has any interest in acquiring this hotel after his talk. He ended on an upbeat note by outlining the reasons why the trading outlook is positive, including the pillar banks return to lending, the retention of the lower VAT rate, the future revaluation by local authorities which will bring ‘welcome respite to hotels suffering the heavy burden of rates liability’, and ‘the absence of any

“ Hoteliers were concerned that international investors are just here for the short term capital gain and will be long gone before any tax on their capital appreciation kicks in.”

meaningful development for some years which will allow improved prospects for existing hotels’.

123 Properties Change Hands Allsop went on to sell a24m worth of property that day, with 123 properties, ranging from a hotel suite to a golf course, changing hands in what auctioneer Robert Hoban called a ‘vibrant property market’. As the conference drew to a close, some hoteliers said that, although Mr Ryan of NAMA was encouraging them to ‘roll out the red carpet’ for the international investors to our industry, they were concerned that these investors are just here for the short term capital gain and will be long gone before any tax on their capital appreciation kicks in. Irish hoteliers may have already missed the boat in terms of gains they could make on the back of the Irish property market stabilisation. Although they have made it through the worst of the recession, there is still a considerable way to go.

Donagh Davern FIHI is a lecturer specialising in the area of hospitality management at the Cork Institute of Technology

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SUPPLY LINE

SUPPLY LINE Essential product knowledge Frecco A Refreshing New Concept for Drinks A Frecco is an individually frozen taste explosion of fruit, herbs and spices that is set to revolutionise how hotels, cafés and even bars serve drinks. Made from all natural ingredients and carefully crushed and blended to form intensely flavoured purées, each Frecco is then frozen in single serve portions to lock in the flavour and natural goodness. Served hot, they can be a credible alternative to fruit infusions and teas, while served cold with ice, they are a refreshing and less sweet option to cordials or other soft drinks. They can also be used for mocktails or as a base for cocktails. With over twelve varieties in the range, you can choose from wild berry, cranberry, ginger and lemon, spiced apple, or traditional mulled wine to serve hot, while flavours such as iced coffee, mocha, traditional cloudy lemonade and strawberry lemonade can be served cold over crushed ice. All drinks are available in two formats – unwrapped versions, known as Naked Freccos, and individually wrapped single serve portions, where individual drinks are required such as behind a bar, in a café environment, or even on an out-ofhours room service menu.

For further information visit www.frecco.com

Gill & Macmillan Ireland’s Favourite Foods Publishers Gill & MacMillan recently launched three excellent books from Ireland’s top chefs. Neven Maguire’s ‘The Nation’s Favourite Food’ features 100 tried and tested recipes. Beautifully laid out with plenty of photos, the book is sure to help any chef learn and perfect the classics. ‘The Weekend Chef’ by Catherine Fulvio brings a more relaxed attitude to cooking at the weekend, with easily prepared meals in abundance. Finally, Ross Lewis’ ‘Chapter One - An Irish Food Story’ is a hefty tome packed with beautifully prepared meals based on the popular restaurant which champions the best of Irish artisan food produce. For chefs looking for new ideas or twists on the originals, each one is well worth a look.

To discover more, visit www.gillmacmillan.ie or your local bookstore.

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hotel & catering review

SUPPLY LINE Biome Bioplastics Compostable Coffee Pods Coffee-pod machines are becoming increasingly popular with usage up by 45.1% between February 2012 and 2013 in the UK, equating to around 186 million capsules. Unfortunately, single serve coffee pods are not easily recyclable. Mixed material pods are sent to landfill and those brands that do offer a recycling service have few recycling points and limited collection service.

With mounting pressure around the environmental impact of their success, the coffee industry urgently needs more sustainable packaging options. In response to this challenge, Biome Bioplastics has developed a portfolio of compostable materials for coffee pods based on renewable, natural resources, including plant starches and tree by-products. These bioplastics will degrade to prescribed international standards in composting environments. Based on the success of the biodegradable pods, Biome Bioplastics is working with manufacturing and brand partners to develop a number of natural polymer-based solutions for the hot drinks industry, with further announcements expected in the coming months.

For further information visit www.biomebioplastics.com.

Samsung Eco Drum Samsung’s latest offering in the industrial washing machine market features a special Eco Drum Clean programme which extends the product’s life, improves performance and keeps the machine looking new. Maximum hygiene levels keep the drum clean and odour-free; hot water (70°C) and a high speed 90-minute wash cycle removes detergent residue and bacteria from the drum. The Eco Drum Clean Auto Alarm can also notify staff when the cleaning programme is necessary.

Visit www.samsung.com

Ruffl Restaurant App Aimed at finding available tables for customers and filling empty seats for restaurant owners, new iPhone and Android app Ruffl is making waves in London. Using geo-location and a network of participating restaurants, the app allows customers to search and instantly book available tables. Restaurateurs have their own app and can update in real time the number of available tables, offers and any discounts they may have. While the app is currently based in central London, a company representative confirmed plans to expand to large cities around the world, including Dublin.

For more information on the app go to www.ruffl.co.

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Wine

taking stock:

The Impact of Budget 2014 Michael Foley, Marketing Director at Findlater Wine & Spirit Group and Chairman of the Irish Wine Association (IWS), looks at the impact that the duty increase in Budget 2014 will have on hotels, restaurants and other licensed premises in 2014.

For hoteliers and restaurateurs the last Government Budget in October 2013 was bittersweet. Here to stay was the 9% VAT rate on the hospitality industry - badly needed though far from guaranteed at the time - but up went the duty paid on wine by another 15% which was received with a mix of incredulity, shock and dismay. While much of the media jokingly focused on this being a ‘middle class’ tax, where an additional levy on a bottle of €20 Chablis or Fleurie was nothing to fuss over, little attention was paid to the effect that this increase would have on the food and drink sector.

The total increase over the last two Budgets was a staggering 56%. We already had the highest level of excise duty in Europe and October’s increase has just magnified this effect.

Michael Foley, Marketing Director at Findlater and chairman of the Irish Wine Association

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Wine excise now accounts for €3.18 per bottle (or €38.23 per 9L case); this means essentially that for a €9 bottle of wine €4.88 (or 54% of the purchase price) is attributable to excise and VAT. The IWA wants to get the message across that wine is an integral part of the hospitality industry, which employs 190,000 people. We are absolutely crucial for a restaurant’s profitability – up to 70% of which comes from wine. It is inevitable that jobs in the hospitality sector will be lost unless the government reviews its approach to taxation on wine.

The timing of the last Budget – just before the Christmas rush – may have dampened the explicit impact of this increase, but as we face into 2014, beginning with the traditional fallow period of January and February, will we see restaurants and hotels struggle once again?

pubs: the next big thing Long looked down on as the poor relation in the wine service world, pubs are gearing up to be the next big thing in terms of wine service. Though only accounting for approximately four per cent of the wine market, I believe that there are significant gains to be had in this area. I see the pub sector as providing a massive opportunity.

This ties back in with the pub being an integral part of the tourist experience. Wine can play a unique role as more pubs move towards a more comprehensive food and drink offering.

However, for pubs to capitalise on this

opportunity, more thought will have to be given to the visibility of wine in terms of presence at the point of sale.

Studies of the most effective pubs in New York have shown how they have embraced this concept and have reaped the commercial benefits. We have already seen the exponential increase of craft beers in our pubs, which is a far cry from the monopoly of the big three or four global brands just five years ago, so this year may very well see pubs tackling wine with the same gusto.

New Approaches to Pricing The traditional ‘cost plus’ system of calculating margins, where a simple percentage is added on top of the cost price per bottle across the board has, over the last number of years, proven to be an ineffective, yet persistent, means of pricing wines in the hospitality industry. It only benefits cheaper wines and puts more premium wines further out of the reach of consumers. However, there has been a slight but very definite trend away from this model. A number of the more proactive outlets now use a cash margin calculation based on the reasoning that beyond a certain price point a percentage margin becomes a hindrance. This method recognises that gains made at this point should be ‘locked in’ rather than inflated by a percentage rule, with the benefit being increased sales of the more premium products. The most notable evidence of this was the unprecedented - and

Wine

A More Affordable 2014

-17% -13%

-23%

-12.5%

-20%

Erik and Michelle Robson, proprietors of wine bar group ely, have absorbed the 2013 duty increase, changed how they buy their stock and restructured their margins in order to restore the true price-quality ratios of their wines following two debilitating Budget increases compounded by a general global increase in costs.

The following examples highlight the scale of the savings available: Beringer Founders Estate Zinfandel:

very publicised - move by ely wine bars in January to actually reduce their prices, citing a fresh approach to margin calculation as one of the reasons behind this.

So is this the year of smarter, more competitive pricing?

Top Tip - Training Furthering the wine service knowledge of front of house staff can result in easy

€30 from €39 (-23%); Penfolds Koonanga Hill 76 Shiraz/Cabernet: €35 from €42 (-17%); Katnook Estate Cabernet: €69 from €79 (-13%); Kanonkop Pinotage: €49 from €56 (-12.5%) and Cono Sur 20 Barrels: €36 from €45 (-20%) These wines are distributed exclusively by Findlater Wine and Spirit Group.

win-win situations that are commonly underestimated: consumers are rewarded with a bottle perfectly paired with the food and the situation, while the outlet benefits from an up-selling opportunity and happier clientele.

Findlater Wine & Spirit Group is very active in this area and has made serious investments in staff training over the past number of years. In 2013 we took this one step further

by introducing The Findlater Certificate of Excellence course.

Conducted by Findlater Education and Development Manager Noel Tymlin, who is a WSET diploma holder, the course comprises both theoretical and practical classes for front of house staff on their own premises over the course of three hour-long modules.

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Property

The Hotel Transaction Market in IrelanD

...And Funding Issues Inhibiting Future Transactions The ‘done deals’ of 2012 and 2013 provide an insight into the property value of the Irish hotel sector and into the level of debt which still requires realignment across the sector. Aiden Murphy of Crowe Horwath reports.

Debt restructuring in the hotel sector is necessary to create a level playing field where all hotels can compete fairly while carrying a level of debt which is affordable. I expect 2014 to be a year where funding institutions commit to major restructuring of bank loans within the hotel sector.

The expectation is that up to 300 of the circa 900 registered hotels in Ireland, circa 44% of Ireland’s hotel bedroom stock, will require a re-geared funding structure to become sustainable in the present marketplace.

The remodelling of the funding structure can be attained by way of changed ownership or where existing owners are allowed to refinance elsewhere at appropriate settlement terms. Alternatively, an option would be to allow the existing owners to renegotiate the loan agreement such that a top slice of debt is effectively written off. The refinanced/re-geared hotel would then be able to better compete in the marketplace with recently-transacted hotels. In many instances, these newlytransacted hotels are cash purchases and the buyers have been in a position to inject a significant amount of cash for

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capital expenditure. This enables these newly-acquired hotels to boost their market position and kick-start their turnover recovery.

Looking at hotels that transacted in 2012 and 2013, it appears that the hotel market is producing three distinct categories of hotel product:

Average Sales Price per Room (based on 2012 & 2013 transactions)

Category

Location of Hotels

Tier 1

Dublin City Centre Hotels a140,000

Tier 2

Other Large Urban a49,000 Centres & Dublin Suburbs

Tier 3

Regional Properties / Other

a17,000

*The above categories exclude the sales of resort type properties such as Fota Island Resort, Ashford Castle, and Parknasilla Hotel & Spa. These properties often include large estates where buyers are seeking to unlock value and therefore the price per room is not representative.

Tier 1 – Dublin City Hotels In order to achieve a transaction, the market needs a willing buyer with funding. The extent to which the interested buyers exist will influence the pace at which hotels are brought to the market. Hotels located in Dublin city centre that were placed on the market in 2013 had multiple bidders and so encouraged additional flow of

product. This trend will continue into 2014 as both receivership hotels and consensual bankpromoted hotel assets are brought to the market. Traditionally, hotel investors tend to have a longer term strategy for their property and need to be in a position to invest in upgrade works during the initial ownership period. I expect that the owners who have recently acquired hotel assets in Ireland will also have a commitment to the market for a

Property

number of years. The predominant type of buyers for Dublin properties are investors drawn to a good financial investment, rather than the traditional hotelier. I would expect, therefore, that this style of buyer will have a preference for purchasing further properties to add scale to their hotel portfolio.

This characteristic alone will sustain demand for centrallylocated Dublin properties.

Tier 2 – Hotels Located in Other Large Urban Centres & Dublin Suburbs The hotels falling within Tier 2 are attracting a different set of buyers.

The strategy adopted to date by agents with hotel properties within this category is to offer a low guide price as a means of attracting interested parties and creating a buzz around an asset sale. Having then stimulated the interest of potential buyers, subsequent due diligence will reveal the handsome investment yield offered by the property based on achievable profit. The fundamentals that will secure investment in hotels in this category will be the opportunity to acquire a performing asset

Aiden Murphy of Crowe Horwath.

that offers a high ratio between replacement costs and the reserve price. The buyers within Tier 2 tend to be domestic business people who have accumulated and retained wealth, despite the recession, and now feel that the time is right to buy. Some of these buyers are in the hotel trade and will, ideally, be looking to buy a hotel in their locality or as an investment for a family member.

Some will have an understanding of the hospitality trade and will seize available opportunities.

Tier 3 – Hotels Located in Regional Areas The Tier 3 assets cover a wide grouping of hotels for which

prices are very depressed. For many, the fundamental problem is that the hotels are trading at breakeven or are loss-making.

Some of these properties will be, at best, lifestyle businesses where the venture is a ‘vocation’ and a committed, hard-working owner will be required to make the business a success. Properties within this tier can often be in a location where circumstances or market position have changed, e.g., a newer hotel has opened in the vicinity or the location is now bypassed. Many of these hotels are considered to be in a poor state of repair due to under-investment in recent years.

Hotels within this category will be sold for the lowest fraction of their replacement cost. The key for these properties will be for the new owners to understand their local market, offer superior service, and keep a tight control on costs at times when there is limited demand for product.

Funding Issues The recurring theme from the hotel transactions completed over the last two years is the predominance of cash buyers acquiring the open market hotels.

The activity of banks to date has tended to be focused on refinancing hotels from exiting institutions such as Bank of Scotland Ireland (BOSI). The

“ A welcome surprise for the year ahead would be the emergence of a new merchant bank that would support business banking, business reinvestment, restructuring projects and consolidation... Such a new banking entity would need to provide medium to long-term funding for hotels and be capable of taking on an equity stake.” hotel & catering review

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Property

pillar banks, AIB and Bank of Ireland, have the capacity to take on new hotel projects and can grow their loan books by taking on hotels where the basic elements are right. They will conduct extensive due diligence, benchmark performance to comparable properties, and take a strategic view on which property to fund.

The current limited number of banks willing to provide funding to hotels means that strong projects may be declined as banks avoid over-concentration in one particular sector or location.

The expectation in any soft market, where quality assets are available at historically low valuations, is that some level of consolidation will occur, whereby domestic hotel owners or groups look to expand their hotel portfolio. This feature has been absent to date as existing hotel owners are often struggling with unsustainable debt levels. However, it is likely that consolidation will emerge in 2014 as banks eventually sign off on restructuring, which will allow proven operators to pursue further hotel investments.

It will be no surprise if 2014 is the year that a hotel REIT emerges, aligning investors with specialist hotel managers. I believe an opportunity exists for the creation of a portfolio of a core group of properties centred on the assets of an owner or financial institution. The unwinding of the seven-year tax deals, which concluded in 2006, also presents the potential for new assets to be brought to the market where a REIT could be a suitable acquirer.

A welcome surprise for the year ahead would be the

Breakdown of Hotel Transaction Tiers by Value (2012 & 2013)

n Tier 1 – Dublin City Hotels

27%

n Tier 3 – Regional Properties / Other

65% 8%

emergence of a new merchant bank that would support business banking, business re-investment, restructuring projects and consolidation. To achieve a stable and confident hotel sector there is a requirement for hotels to be appropriately funded. Such a new banking entity would need to provide medium to longterm funding for hotels and be capable of taking on an equity stake. The introduction of a new merchant bank in Ireland could be the catalyst to spark a fix to the current investment problem.

Conclusions Reviewing the market performance in 2013, hotels located in prime urban centres and higher end hotels appear to be the main benefactors of the recovery in the sector. This recovery in profit margins in the Dublin market has further increased the asking price per room. Meanwhile, the majority

“ I expect 2014 to be a year where funding institutions commit to major restructuring of bank loans within the hotel sector.”

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hotel & catering review

n Tier 2 – Other Large Urban Centres

While Tier 1 Dublin City Centre hotels only account for 10 properties in a sample of 53 considered for this paper, they account for 65% of the value of hotel transactions completed in 2012 and 2013. of hotels, categorised in Tier 3, are waiting for the rising tide to reach them. Outside Dublin profit levels for hotels are still less than 60% of the peak levels experienced by the sector in 2007/2008. The cost base for nearly all hotels is such that turnover growth will translate into profit increases and the prospect of improving profit levels is what will maintain investment activity and interest in Irish hotel assets.

The momentum created by re-geared hotels and transactions completed to date will in turn put added pressure on funders and owners to agree a fix for the remainder of the hotel stock, which will otherwise be left at a competitive disadvantage. I believe 2014 will bring to a conclusion many of the fixes that are long overdue and are necessary for a sustainable hotel sector in Ireland.

About the Author Aiden Murphy is the Recovery and Restructuring Partner with Crowe Horwath who are specialist consultants to the hotel sector. Aiden is he author of the Crowe Horwath Annual Ireland Hotel Industry Survey.

FARM tat o & Celer iac, PoFRESH Rosemar y Grat in Ingredients

Denis Harford is a third generation farmer, locally growing Irish celeriac for Keelings.

Celeriac would traditionally have been imported from Holland and other parts of Europe but by growing it in Ireland we now have a sustainable, locally sourced supply of this vegetable. It’s a far fresher product that is harvested today and in your kitchen tomorrow. Grown in North County Dublin and delivered shortly after into Dublin city, Irish celeriac requires no air miles and therefore is good for our eco-system when compared to imported celeriac from mainland Europe.

Like celery, celeriac is an excellent source of vitamin K. It is also a very good source of fibre, Vitamin C and phosphorus, and a fair source of potassium. Celeriac (celery root) is the root of a variety of celery, though a different variety than we usually eat as celery. It differs from most root vegetables in that it is not very starchy.

The flavour is mild and reminiscent of celery and parsley.

• Celeriac can be eaten raw in salads.

• It can be boiled and eaten as mashed potatoes.

• Many spicy curries are made with this root vegetable.

• It can also be fried and eaten often as an alternative to potato fries.

• It can be grated raw over delicacies as garnishing.

• It can also be cooked in soups and stews.

ped (o pt ional) • 6 rashers bacon, chop • 420ml double cream • 350ml milk • 2 garl ic cl oves, sl iced ly chopped • 1 tbsp rosemar y, fine and sl iced • 1 red chill i, deseeded • 1 tbsp Dijon mustard red and thin ly sl iced te ar qu , ed el pe g) 00 5 • 1 celer iac (about d very thin ly sl iced an ed el pe , es to ta po g • 500 and n, if using, until cooked co ba e th ll ri G 4. s ga C fan/ • Heat oven to 180C/160 epan, aside. e boil in a medium sauc th light ly br own, then set to rd ta us m d an i ill rl ic, rosemar y, ch • Bring cream, milk, ga then turn of f. pr oof grat in dish. en ov an to on e ur ixt m m ea on.

• Pour a little of the cr r with bacon, then seas te at sc c, ia ler ce of r ye ocess, Arrange a la and repeat the same pr e ur ixt m m ea cr e th of • Pour over some more with a layer of potato. g in sh ni fi c, ia ler ce d alternat ing potato an bake for 1-11/2 hrs, en th e, ur ixt m m ea cr nder of • C over with the remai bles are tender. until go lden and vegeta ins, then serve.

• Leave to sit for 5 m

Met hod

When only the freshest will do...

To order please contact: Dublin: +353 (0)1 813 5600 • Cork: +353 (0)21 496 8088 Wexford +353 (0)53 914 7447 • Belfast +44 28 9032 4236 • www.keelings.com

Five minutes with

Catherine Dundon Catherine Dundon – co-owner of Dunbrody Country House Hotel with celebrity chef husband Kevin Dundon – tells us about her typical day, her life as President of the Blue Book and her plans for the future.

Can you describe a typical day at Dunbrody House?

I don’t think there is any typical day! You hit the ground running as soon as you come in the door and you could be doing anything, from dealing with wedding enquiries or online bookings to social media or advertising planning. Towards the end of the week, it all gears up towards your weekend business – who’s coming in and if they’ve been in before, if there’s a special occasion. But at the beginning of the week, you don’t know what’s waiting for you!

You recently took over as President of the Blue Book. Can you tell us about that experience so far?

We’re very happy with our membership - at the moment we’re trying to consolidate it and make sure we’re all on the same wavelength. And, not getting too corporate, to put procedures in place so that we can communicate better with both guests and members or potential members. The membership encompasses a really broad range of properties, including restaurants, guest houses and hotels, and I suppose the common thread is the pursuit of excellence across the board. The vast majority of properties would be owner-managed, like Dunbrody is, and they would all be architecturally unique none of them are a purpose-built hotel. Restaurants might be a little bit different but we all have similar challenges facing us.

What’s the outlook for Dunbrody House for 2014?

From 2013 we started seeing a big improvement.

There’s less pressure on rates and there’s more of a willingness to stay two nights instead of one. We’ve certainly seen a big increase in our cookery school bookings and in the spa bookings. A lot of that has to do with Kevin’s TV show, Modern Irish Food, which

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hotel & catering review

certainly pushed a lot of cookery school business.

That show is now live in the US across the public channel and we’re getting a lot of American bookings.

The south-east wouldn’t be a traditional American destination but we’ve started getting a lot of bookings much sooner than we would normally get them.

Will we see any major new initiatives at Dunbrody House this year?

Kevin is very keen to simplify our menu, to strip it back and allow the flavours to come through.

When we opened first, we kept the menu very local and very simple, and it did evolve into much more restaurant-style food. What we’ve found is that the demand seems to be moving away from the very fancy food. People aren’t looking for home cooking but for more funky food with fabulous ingredients such as lobster, scallops or Dublin Bay prawns, but done very simply.

Brakes is an all Ireland foodservice business with depots in Dublin, Lisburn, Strabane & Galway.

Brakes foodservice offers a next day delivery service across Ireland on a fleet of multi temperature vehicles.

Having a field sales team including many trained chefs, we are ideally structured to help businesses who serve food to thrive.

The introduction of additional categories now allows us to provide the complete ‘one stop shop’ solution.

Our product range includes: - Ambient - Frozen - Chilled - Non-Food - Fresh meat, poultry & fish - Fresh bread & milk - Produce For more information contact us on 0818 720 720 Proud sponsors of the Irish Hotel Federation Conference.