Hotel & Catering Review - Issue 5 2019 by Ashville Media Group

ISSUE 5 2019

Jess Murphy’s Kai turns

Senior Tourism Are you missing out?

plus

The Rabbit’s Epic Road Trip

Superior Taste ly Botaniceadl Brew

Fentimans artisanal beverages - a treat for your tastebuds since 1905

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Contents ISSUE 5 2019

IN THIS ISSUE

14 17 Natural beverages, the Fentimans way

“Fentimans makes its drinks using the time-honoured, traditional botanical brewing technique, a process that takes a full seven days to create the perfect artisanal beverage. It’s this technique that produces the impressive depth of flavour that today is the hallmark of Fentimans drinks”

REGULARS

NEWS

BUSINESS MATTERS

BOOK SHELF

BACK BAR

22 28

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EXPLORING OUR RELATIONSHIP WITH IRISH FOOD

UCC has launched the country’s first postgraduate course with a dedicated focus on Irish food culture

INK LANDS IN DUN LAOGHAIRE FoodSpace has made the leap onto the high street with Ink at Dun Laoghaire’s LexIcon

NEW OPENINGS Some of the latest venues set to open their doors in Ireland’s hospitality industry

FOOD HEROES With Kai, Jess Murphy has mastered the art of a good lunch. The award-winning chef talks about her love affair with Galway and why she champions Irish food producers

ACQUISITIONS Sean O’Driscoll from iNua talks about the regional hotel industry and why the onus is on hotels to diversify

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Editor Denise Maguire Art Director: Áine Duffy Designer: James Moore Creative Director: Jane Matthews Photography: Food on the Edge, Shane O’Neill, Ballynahinch Castle, Irish Guild of Sommeliers, Welbilt, DELI-LITES, Dunnes Stores, Photographicmemory.ie, Minibar Systems, Jenn-Air, Baidu, Percipia, Hodder & Stoughton, Brewer’s Publications, Penguin, Dan Dennison Stock Photography iStock Infographics: www.flaticon.com Production: Nicole Ennis Sales Director: Trish Murphy Managing Director: Gerry Tynan Chairman: Diarmaid Lennon

Published by: Ashville Media, Unit 55 Park West Road, Park West Industrial Estate, Dublin 12, D12 X9F9. 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 2018. 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.

Editor’s View Welcome to issue 5 of Hotel & Catering Review 2019 Senior tourism is worth €13 million to the Irish hotel industry. That’s according to a survey carried out by Active Retirement Ireland that also revealed that a significant number of Irish hotels aren’t meeting the needs of older guests. Single supplements are a major issue and an unnecessary one when Active Retirement members are booking their stays mid-week, out of season. So why aren’ t more hotels capitalising on the lucrative ‘senior tourism’ sector, particularly when these bookings are being made during off-peak times of the year? With Active Retirement members making a significant contribution to the Irish tourism industry, hoteliers would be wise to view older people as the valuable customers they are. For more on this, turn to page 31. For this issue, we also chatted with Jess Murphy, owner and chef at Kai restaurant in Galway. Kai celebrates its eighth birthday this year and in that time has become a must-visit for tourists and regulars alike who relish the ever-changing seasonal menu. We also caught up with Sean O’Driscoll, chief operating officer at iNua, on the back of the company’s eighth acquisition. Sean says a lack of understanding about the relationship between regional Ireland and seasonality has created a difficult situation for lots of hotels outside Dublin. The VAT increase and changes to drink driving legislation have also impacted hotels outside the capital and will continue to do so throughout 2019. For more on the regional hotel industry, turn to page 28. As always, there’s plenty to enjoy in this issue. If you have any thoughts or opinions on this month’s content, please do drop us a line.

Editor: Denise Maguire Email: denise.maguire@ ashvillemediagroup.com

Denise Maguire www.hotelandcateringreview.ie | info@hotelandcateringreview.ie @HC_Review | facebook.com/hotelandcateringreview

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Your monthly round-up…

GoT TOURISTS SPENT €58M IN NORTH LAST YEAR

MY GOODNESS, MY GUINNESS The Guinness Storehouse recently celebrated a momentous milestone by welcoming its 20 millionth visitor, Maria Christian from New York who visited Ireland for her first time with Tipperary born fiancé Chris Coen.

Picture courtesy of Andres Poveda

1.1m visitors a year to visit Limerick A new four year tourism strategy for Limerick predicts that the number of visitors visiting the city will reach 1.1 million a year, generating more than €360 million in revenue and creating 1,500 new jobs by 2023. The plan, which has identified Limerick’s position as a gateway to the Wild Atlantic Way, plans to revitalise local tourism and points to four broad areas that are central to developing the sector – waterways, activities, heritage, arts and culture. These will be delivered though four themes – Into the

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Blue (waterways), Energy Unleashed (activities), Vibrant History (heritage) and Alive and Kicking (arts and culture).

New industry figures from Tourism NI have revealed that one in every six out-of-state visitors were inspired to travel to the North in 2018 because of Game of Thrones. A report in The Irish Times shows that fans from India, North America, China, Australia and from across Europe travelled to Northern Ireland to see for themselves where some of the show’s epic battles were filmed. There are more than 26 filming locations and over 23 visitor experiences that fans can enjoy in NI, along with coach tours and specialist tour services. According to John McGrillen, chief executive of Tourism NI, permanent attractions will include the Game of Thrones studio tour, which is due to open in spring 2020 at the Linen Mill Studios in Banbridge. Meanwhile, a “Derry Girls experience” has been suggested for Derry to capitalise on the success of the Channel 4 show. A Derry Girls mural, unveiled in the city centre earlier this year, has already become a picture opportunity for tourists and locals alike.

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‘Food On The Edge Ambassador Programme’ Announced The international launch of Food On The Edge 2019 recently took place at Robin Gill’s newly-launched Darby’s restaurant in London. The event saw the announcement of the 2019 venue which will once again be NUI Galway, the themes and a list of speakers to date. A new Food On The Edge Ambassador Programme will also feature at this year’s event. JP McMahon, founder and symposium director of Food On The Edge, said, “Each year we receive a large number of inspirational applicants hoping to partake and speak at Food On The Edge. These applicants are very often doing wonderful things for Irish food and developing the industry in their own way. While we have limited capacity of speaking slots, we wanted to do something to acknowledge these food champions. I hope this initiative will widen the reach of Food On The Edge and act as its legacy into the future, eventually expanding onto a global scale.” Six people will be selected to be the Food On The Edge Ambassadors for 2019. Applicants can visit the event’s website for more details. Food On The Edge 2019 takes place on the 21st and 22nd of October in Galway.

‘INDECISION’ ON TOURISM POLICY THREATENS SECTOR

The new Chairperson of the Irish Tourism Industry Confederation (ITIC) has warned that a lack of government focus will negatively impact the tourism industry. Speaking at an event on the organisation’s 2025 strategy for the sector, Ruth Andrews said that government inaction on tourism included soaring costs of business, inadequate overseas marketing budgets, new regulations curbing self-catering tourism accommodation and increased taxation and labour regulations. ITIC estimates that growth in 2019 at 3% will only be half of what official estimates had stated earlier in the year. The organisation also issued a 12-month

progress update on its eight-year roadmap for the sector which showed that the tourism industry in 2018 delivered a 6% increase in revenue and tax receipts to the exchequer as well as creating 35,000 new jobs in the sector. However ongoing growth is being threatened by weakened competitiveness, inadequate government investment and rising costs of business. The report estimates that revenue can grow by 65% and that 80,000 jobs will be created across tourism and hospitality in the coming years. However, this is predicated on the policy recommendations within the strategy being implemented by industry, tourism agencies and government.

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A DIGITAL DAY In The Life Of Ireland Actor Tom Skerritt, who planned on exploring his Irish roots, also joined the group

Tourism Ireland and Steller.co, the world’s largest travel storytelling app – in conjunction with Fáilte Ireland and Tourism NI – recently invited 28 of North America’s most followed travel influencers to visit Ireland. These influencers collectively have a following of more than 53 million. On the 28th of April, the influencers were dispatched around the island of Ireland,

tasked with creating multi-media stories for the Steller app. They had exactly 24 hours to create their stories through video and photos. The series of stories they created have been collated into a new collection on the Steller platform – called ‘A Digital Day in the Life of Ireland’ – revealing what 24 hours in Ireland has to offer for travellers everywhere.

Irish Distillers wins big at World Spirits Competition

Irish Distillers scooped 11 Double Gold medals at the recently-held San Francisco World Spirits Competition 2019. Success in San Francisco followed wins for the Midleton portfolio at the Ultimate Spirits Challenge last month, where new whiskeys Red Spot and Jameson Bow Street 18 Years Cask Strength stole the show, scoring 98 and 97 points respectively. Following a near-perfect score Red Spot, which was re-introduced in

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2018 after 50 years, was awarded the Chairman’s Trophy for the single pot still Irish whiskey category.

MARK MCGOWAN IS NEW RAI PRESIDENT The Restaurants Association of Ireland has announced the appointment of Mark McGowan as the President of the Association. Along with his family, Mark owns and operates Scholars Townhouse Hotel in Drogheda. He grew up in his family pub, McGowans of Phibsboro, which instilled in him a passion for tourism and hospitality. Commenting on his new role, Mark said: “It is an honour and privilege to be elected President of this organisation. I have been on the council for over five years; I have spent a lot of time discussing and debating with my council colleagues over various issues that we have been faced with. I would like to express my gratitude to my wife Andrea and my family for their unconditional support and I will do my very best to ensure there is progress within the sector.”

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WALSH WHISKEY LAUNCHES Writers’ Tears Double Oak Walsh Whiskey has created a new core expression for its Writers’ Tears range which focuses on aged Single Pot Still and Single Malt premium whiskeys. Writers’ Tears Double Oak is a blend of the two premium whiskey styles aged in two types of wood – American and French Oak. It’s triple-distilled, non-chill filtered and bottled at 46% ABV. Double Oak is the third core expression in the Writers’ Tears range which includes the Copper Pot and Cask Strength versions.

Appointment Cormac Vesey has taken up the role of Executive Head Chef at Kilkenny Hibernian Hotel. A native of Dunshaughlin, County Meath, Cormac graduated from Waterford Institute of Technology with a Higher Certiﬁcate in Culinary Arts in 2010 and in the same year was awarded the Student of the Year title by his department. Since then he has worked in kitchens in New Zealand, France, England and Canada. He has also been part of the culinary team in some of Ireland’s most renowned restaurants including the ﬁve-star Killarney Park Hotel, Waterford Castle Hotel and the Michelin-starred Cliff House Hotel, Ardmore.

€106.7M WORTH OF HOTELS TRANSACTED IN OPENING QUARTER OF 2019

A vegan cheese board… and Buckfast! The Lighthouse Cafe in Galway has launched a vegan cheese board to kick off its summer evening openings. In a nod to a Galway staple, it’s BYOB and Buckfast is welcome! The Vegan Cheese Board includes a blue and camembert cheese from Little Green Leaf in Cork, a whipped vegan feta infused with lavender and thyme, rosemary salted walnuts, pear chutney, prunes, pickles and crisp breads.

A new report from Cushman & Wakefield has found that the opening quarter of 2019 saw a significant boost in hotel transaction activity. Turnover in the first three months of the year amounted to €106.7 million, across six transactions. This compares to just €24 million in the same quarter last year and sits just above the five-year quarterly average of approximately €99 million. Irish buyers were active in the market in the opening three months of the year, accounting for four of the six transactions. Singaporean investor Dr Stanley Quek purchased the remaining two transactions, Sheen Falls Lodge, Kenmare and Dublin

Citi Hotel, Dublin 2 for €17 million and €11.9 million respectively. Of the six hotels which transacted in the first quarter, the most notable was that of the 5-star Powerscourt Estate in Co. Wicklow which was sold to the MHL Group for €50 million as a trading asset sale. In addition, the report states that 52% of the rooms currently under construction are expected to complete in 2019, with a further 1,143 rooms to be delivered to the market in 2020. These rooms will be delivered across 40 hotels and will be a welcome addition, particularly in Dublin, where occupancy levels and average room rates continue to rise.

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ALL THESE THINGS MATTER TO US… At Musgrave MarketPlace we’re proud to be the only 100% Irish owned national foodservice wholesaler. Over 140 years ago the Musgrave family set out values to guide our business and six generations later these values are still at the core of who we are. We believe in building long term stable relationships, not being greedy, honesty, working hard and achievement. Because of these values, we’re committed to supporting Irish jobs and sourcing from local suppliers, helping local charities, building a more sustainable future and investing in our future food leaders.

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BECAUSE WE’RE IRISH

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THE EUROPE HOTEL & RESORT opens €3m staff accommodation Killarney Hotels has opened four new state-of-the-art staff accommodation blocks at the ﬁve-star Europe Hotel & Resort in Killarney, Co. Kerry, just in time for the busy summer season. The two-story accommodation blocks each contain 10 bedrooms, living quarters, terraces and extensive planting to enhance the

surroundings. The €3 million construction project was completed by Kerry-based ﬁrm Griffin Brothers Construction. Alongside the high-spec accommodation, the new staff facility at The Europe Hotel & Resort boasts a host of facilities including a gym, WiFi, laundry facilities, parking, bicycle storage and extensive common areas.

“We are proud of our commitment to the comfort and well-being of our team and with the shortage of rental accommodation on offer in Killarney, we realise the difficulty that this causes to our employees from outside of the region,” said Michael Brennan, Managing Director of Killarney Hotels.

DANIEL O’DONNELL VISITOR CENTRE TO BECOME HOTEL It has been reported that the Daniel O’Donnell Visitor Centre in Dungloe is set to be combined with a local premises to create a top class hotel, restaurant and bar in the town centre. It’s expected that the new venue will further enhance Dungloe as a strong tourism destination and provide much needed sustainable jobs. The Visitor Centre has charted Daniel’s rise from his humble roots in Kincasslagh through to his international acclaim as a singer and entertainer. Items on show included the array of Gold, Platinum and Silver discs for record sales, the ‘This is Your Life’ book presented to him on the TV show and exhibits associated with his appearances in Nashville.

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IRELAND’S FIRST STREET ART HOTEL hits the market

Situated on Hendrick Street, near Smithfield Square in Dublin 7, The Hendrick will be the first street art hotel in Ireland when it opens its doors at the end of May. The new hotel has been developed by the Dublin Loft Company and will be operated by Tifco Hotel Group. With 146 rooms and self checkin and check-out technology, The Hendrick will also be home to a ground floor bar, outdoor courtyard space and over 270 works of Irish and international street art, curated by Irish street artist James Earley. A highlight will include a piece of street art from the Windmill Lane Recording Studios, signed by all members of U2 during one of their recording sessions. The new hotel has also partnered with one of Dublin’s last remaining inner city bakeries, the Bretzel Bakery, for the hotel’s breakfast pastries and breads as well as Smithfield’s Delicious Food Co. for gourmet wraps, sandwiches and salads.

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WINS FOR THREE BLUE BOOK HOTELS AT GOOD EATING GUIDE AWARDS Ireland’s Blue Book recently announced that Belleek Castle, Bushmills Inn and Derry and Sallyanne Clarke of L’Ecrivain were winners at the Good Eating Guide Awards 2019, which took place in Dublin in April. Speaking about their Hall of Fame Award, Derry Clarke of L’Ecrivain said: “I am thrilled that we are still

relevant after 30 years. Who would have thought that we would still be here when we opened up in the basement restaurant all those years ago.”

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AND THE WINNER IS… ‘GENERAL MANAGER OF THE YEAR’ AWARD WINNER FERGUS O’DONOVAN ON THE IMPORTANCE OF BEING ACKNOWLEDGED FOR HIS SERVICES TO THE INDUSTRY CAREER HISTORY I’ve worked with Radisson for the past 13 years or so. Prior to the Radisson in Athlone, I was the city manager in Belfast looking after the Radisson Blu in the Park Inn. Before that I was in Jersey for two and a half years in the Radisson Blu. I’m proud to have received this award; being acknowledged in a group of your peers is a great achievement. INSPIRATION Even when I was a child going to a hotel with my parents, I was always struck by how much was going on, whether it was meetings, functions, a busy bar or restaurant. The variety of it attracted me. We’re in a people industry so if you have any desire to be dealing with people on an everyday basis, it’s the ideal career. I once worked for somebody who referred to it as a way of life. That’s something you have to accept. You’re made for it or you’re not.

IMAGE IS EVERYTHING We live in a society where image is everything. More often than not, we do judge a book by its cover so with that in mind, is it time for you to do a brand review? So many times we at ARC Studios find that hotels have created a brand at inception and throughout the years the services and product changes. You undergo a refurb and all of a sudden your brand is a million miles away from the product you are selling. Why spend time / money on your brand? · First point of communication with your client · It’s the face of your hotel · Make a memorable impression on your client · Helps a client understand what to expect from your hotel · Sets you aside from your competitors · Conveys the quality of your service

WINNING ‘GENERAL MANAGER OF THE YEAR’ The hotel had been in receivership for four or ﬁve years and that was a difficult time for the staff. There’s been a lot of change but one of the nicest aspects of that change is that nearly €3 million has been spent on refurbishing the hotel over the past two years. When you spend that much on a property, the investors want to see a return on it. We’ve also had a few successful years of growing sales so I think all those elements put together probably helped me win the award.

What does a well-developed brand do for your hotel?

PRIDE All the staff are very proud of the hotel and that translates to guests. It gives everyone a lift. We invest in people too and one thing we’ve frequently noted in our guest reviews is our friendly and efficient staff. They’re willing to go the extra mile to look after customers. As a General Manager, you’ve got to understand that hospitality is at the core of what you do. You’ve got to get that right and be cognisant of what your guests want. Understanding the proﬁle of the guest using your property and delivering the service and product that they’re looking for is what it’s all about.

· Type of hotel – corporate or leisure

· Gets recognition · Increases business value · Generates new customers · Improves employee pride and satisfaction · Creates trust within the market place · Branding supports advertising campaigns What elements influence your hotel brand? · Star status · Geological location · Demographic age of your client · The owner’s vision and mission statement · Architecture and style of the building So call us today and our team will conduct a brand review of your marketing material from logos and taglines, to brochures and photographs. Check out our portfolio for information on some of the prestigious brands we have produced - arcstudios.ie

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24.09.2019 Now in their 31st year, the 2019 Gold Medal Awards are recognised as the leading independent awards programme for the Irish hospitality industry. Judged by industry experts, the Hotel & Catering Review Gold Medal Awards recognise and reward excellence in hospitality and catering operations across the island of Ireland. The 2019 awards will be presented at a black-tie gala dinner on the 24th of September 2019 at The Lyrath Estate Hotel, Kilkenny. For more information visit: hotelandcateringreview.ie/awards or contact Kathryn Doyle, Senior Event Manager Phone: 01 432 2226 | Email: kathryn.doyle@ashvillemediagroup.com

PROUDLY SPONSORED BY

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Limited number of Category Sponsorships remaining, for more information contact Trish Murphy, Sponsorship Director Phone: 01 432 2231 | Email: trish.murphy@ashvillemediagroup.com

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It’s complicated:

exploring our relationship with Irish food UCC has launched the country’s first post-graduate course with a dedicated focus on Irish food culture

Entitled ‘Irish Food Culture’, the new course is the brainchild of Regina Sexton, Food & Culinary Historian at UCC. After noticing a burgeoning interest in Irish food and a very deﬁnite sea change in how people engage with it, the idea for a food culture course with an Irish bent began to ferment. “About three years ago, I spoke to my colleagues here in the university to see if the various schools and colleges could collaborate on a new course. Everyone was very positive about it so we went ahead with it and last year it was approved.” Current preoccupations with health and wellness and the idea that food is the silver bullet were also considerations when it came to devising course content. “There’s a lot of misinformation and food mythology out there. This diploma is very much based on research and solid teaching. We thought the time was right to step in and offer a course that would debunk this misinformation while examining the complexities and intricacies of Irish food culture.” The two year, part-time, transdisciplinary course kicks off in September. “Interest has been really good so far. We’ll close for applications in early August. I think it will appeal to a very wide base; people interested in food and culinary tourism, chefs, producers, people in the food industry who want to get a rounded idea of Ireland in a contemporary context, people interested in the environment and food sustainability and also people in PR and food marketing.” The idea of food being an expression of culture is something that has yet to fully develop in Ireland, says Regina. “I think that has to do with how Irish people have traditionally viewed Irish food, their understanding and value of it. It wasn’t seen as something to be proud of or something to speak about with conﬁdence or pride. The time wasn’t right for the course previously because of all these cultural complexities. What has been happening to food since the 60s and 70s is rising to the surface and boiling over; you have people who are very confused, interested or engaged, all these human connections with food are coming to the surface so now is the right time to bring this course to Ireland. If we had launched it 10 years ago, people wouldn’t have been interested.” The Irish Food Culture Postgraduate Diploma is a two year evening course. For entry requirements and for a course outline, visit www.ucc.ie/en/ace-pdifc/

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New Openings

Ink lands in Dun Laoghaire FoodSpace has made the leap onto the high street with Ink at Dun Laoghaireâ&#x20AC;&#x2122;s LexIcon. Grainne Carberry talks to Hotel & Catering Review about maintaining the companyâ&#x20AC;&#x2122;s ethos around sustainability at the new restaurant

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New Openings

he ethos at FoodSpace is very simple. Stay loyal to local and don’t waste food. Sounds easy but with increasingly tight budgets in restaurants across the country, adhering to an admirable ethos isn’t as straightforward as it should be. Ink is the brainchild of FoodSpace, a division of facilities management company Apleona Ireland. Since bursting onto the scene three years ago, the company has raised the sustainability bar while creating exciting, innovative dishes. Grainne Carberry is Director of Catering Services at FoodSpace. ‘Keeping it local’ is, she says, what sets the company apart. “With Ink, we’ve tried to source everything within an 80km radius. That idea of staying loyal to local is something we’ve maintained across all our sites. It’s about bringing it back to the community and giving back to the local guys which doesn’t just make sense for us, it also makes sense for the client. Pharma companies for example want to integrate into the local community and feel like they’re making a positive difference to the locality. So everyone’s a winner,” said Grainne. FoodSpace has 18 sites across the country. Grainne and Conor Spacey were initially taken on by Apleona to set up restaurants for Abbott Ireland’s five sites. This successful venture led to the creation of FoodSpace, a brand that works alongside the Apleona business. “We call it TFM - Total Facilities Management. It’s a complete solution and that’s Apleona’s main aim, to have complete solutions for large companies. From the outset, we decided we needed to approach contract catering from a different perspective. The commercial catering industry has a notoriously bad reputation for poor quality, sub-standard food. Most of our ideas centred around staying loyal to local and zero wastage, but we also wanted to allow our chefs be creative and not be stuck in mundane roles.” Ink is located in the LexIcon library in Dun Laoghaire. Executive chef is Conor Spacey who has worked in various kitchens across Ireland and the

UK. With seating for 40 customers, it’s a relatively small space. “It is quite small but we’re filling the seats and turning them every day which is great. We had previously done some FM management for the LexIcon so when they approached us to see if we’d be interested in taking on the restaurant, we jumped at the opportunity. Conor and I had always talked about going out onto the high street so this seemed like the right time to get our story out there about sustainability and zero waste.” The restaurant serves breakfast, brunch and lunch and a supper club runs on Friday and Saturday evenings. Dishes for the supper club are made from the ingredients that have come in that day. “We don’t know what’s going to be on the supper club menu, it depends what comes in. During the day there’s a set menu but it’s all made from produce in season. Eliminating wastage in the kitchen is another huge focus for us. For example, at the moment Conor is using coffee grinds to make a brine so he can make his own pastrami. Leftover milk from cappuccinos is being used to make ricotta cheese.” No plastic bottles are sold at Ink. “We’ve taken them out of our business as much as possible. We have some sites, like large manufacturers, that have insisted on keeping them but everywhere else, we sell cans. People have argued that cans are as bad as bottles but we can’t actually recycle the bottles here in Ireland. At least you can recycle the aluminium. We’ve produced a new FoodSpace water bottle that customers can use and reuse and we’re selling them at a discounted price. They’re proving very popular.” Cling film has also been removed from all FoodSpace kitchens. “It has been drilled into us that we have to wrap everything in plastic but we actually don’t. We use Tupperware or food grade boxes for food storage and we’ve seen a substantial decrease in our wastage bill.” At Ink, plans for the future include developing an outside area and a continued focus on sourcing local produce. “If the right opportunity came up, we’d certainly consider venturing onto the high street with another venue. For the moment, we’re focused on Ink and ensuring it fulfils its potential.”

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Oriental botanicals, Gunpowder tea & Irish curiosity.

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Best Gin Oscar 2019 “The Best Spirits Known to Mankind”

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Openings Some of the latest venues opening their doors in Ireland’s hospitality industry

Marlin Hotel Dublin Marlin Group, one of London’s largest privately owned hospitality operators, is set to shake up the Dublin hotel scene by opening its first hotel in Dublin 2 this July, creating 110 new jobs. Marlin Hotel Dublin, a 300-bedroom hotel, will be situated at 11 Bow Lane East, adjacent to St. Stephen’s Green Shopping Centre. The €55 million development is being spearheaded by Irish owned Marlin, who opened the first of its seven London locations back in 2003. The 110,000 sq ft triangular building has been designed by architects Cantrell Crowley, with interior design by O’Donnell O’Neill Design. The ground floor area will offer a self-service check in, a co-working area, an indoor garden as well as an outdoor terrace.

New Luxury Suites At The Westin The Westin Dublin has invested €500,000 into renovating its premium and exclusive suites. Millimetre Design worked with the hotel on the new suites which complement the culture and history of the building while honouring the heritage of the hotel. The bedrooms, bathrooms and separate living spaces are filled with Irish handcrafted bespoke furnishings, rich tonal floor and wall coverings and Carrara marble bathrooms. According to the hotel, the design marries the traditional and iconic architecture of this historic building, while maintaining the core values of The Westin brand; Sleep Well, Feel Well!

Suesey Street Garden Room Year-round al fresco dining is now on the menu at Suesey Street on Dublin’s Fitzwilliam Place thanks to a new Garden Room. The 40 seater terrace has been completely revamped with a chic new look and a fully retractable roof for good weather entertaining. With a brief to create a comfortable all weather outdoor dining space, interior design agency 21 Spaces used a palette of purple, dusky pink and warm greys, reflecting the changing seasons. On a practical level, a cream quarry stone floor complements the original brick wall and dark wood topped tables which flank long banquette cushioned seating.

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Partner PROFILE

New heights for

Irish tourism

A range of initiatives from Fáilte Ireland set to grow the industry

IRELAND’S HIDDEN HEARTLANDS ACHIEVES SERVICE EXCELLENCE

Minister of State for Tourism and Sport, Brendan Griffin, Jenny DeSaulles, Head of Ireland’s Ancient East at Fáilte Ireland, Emer O'Gorman, Chair of the County and City Management Association and Paul Kelly, CEO of Fáilte Ireland pictured at the announcement of Fáilte Ireland’s new investment scheme.

NEW INVESTMENT SCHEME

TO BENEFIT UP TO 62 TOWNS

Fáilte Ireland recently announced an investment of €15.5 million through the local authorities to boost the attractiveness and tourism appeal of up to 62 towns across the country. The Fáilte Ireland scheme is part of the National Tourism Development Authority’s work to drive a better regional spread of overseas and domestic visitors and spend. Through the scheme, every local authority in the country will be able to bid for funding of between €250,000 and €500,000 to develop up to two towns in their area which have the potential to become a ‘destination town’ for tourists. With Fáilte Ireland research consistently showing that attractive towns and cities are key motivators for overseas holidaymakers coming to Ireland, the new scheme will provide funding to councils to enhance public spaces such as squares, streetscapes and markets in a way that will engage tourists and enhance their experience in key towns. The ‘destination towns’ will need to demonstrate their capacity and appeal to attract more international visitors to stay overnight – a key driver of spend.

Members of the tourism industry across the Ireland’s Hidden Heartlands region completed Fáilte Ireland’s Accredited Service Excellence Programme throughout May. The programme, designed for front-line staff who have daily contact with visitors, helps tourism businesses deliver the highest standards of service and customer care to visitors. Those on the programme learned about the customer journey, managing complaints, creating memorable experiences and upselling, before undertaking a boat trip on the Shannon to discover what it has to offer. Encouraging visitors to be ‘Active in Nature’, the Ireland’s Hidden Heartlands regional experience brand brings to life the Midland’s rich natural assets. The River Shannon is one of the central spines of the region and the programme aims to bring the visitor experience to life and encourages cross-selling and recommendations. Find out more about the supports available from Fáilte Ireland at www.failteireland.ie

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Fáilte Focus

Taste the Island – celebrating Ireland’s food and drink Travel writer Pól O Conghaile, Tracey Coughlan, Food Tourism, Strategy and Programmes Manager at Fáilte Ireland and Paul Keeley, Director of Commercial Development at Fáilte Ireland at a Taste the Island workshop.

“We are creating some of the most exciting food and drink stories ever experienced on this Island and our ambition is to bring Ireland’s food story to the world.” Globally, Ireland is known as a nation with a vibrant culture with green ﬁelds and pristine waters together with a mild wet climate which gives us bountiful, sustainable and high-quality food produce. In response to the growing global interest in food and drink and to enhance this reputation, a new all-island initiative – ‘Taste the Island - a celebration of Ireland’s food and drink’ has been developed by Fáilte Ireland, in collaboration with Tourism Ireland, Tourism Northern Ireland and a range of stakeholders. ‘Taste the Island’ will showcase Ireland’s

world-class food and drink culture across the island of Ireland from September to November to provide visitors with access to authentic food and drink experiences, high quality local ingredients and world class Irish food and drink produce. The extensive programme running over three months will seek to create an awareness and renewed appreciation at home and abroad of the strength and richness of Ireland’s cuisine today. Throughout May, Fáilte Ireland has been running workshops across the country for businesses interested in providing tourists with a food or drink experience as part of the initiative.

Fáilte Focus, Fáilte Ireland’s new tourism insights library, is now live on www.failteireland. ie/focus. This new platform not only showcases the latest Fáilte Ireland research and insights, it also provides access to some of the best international research available. With content on what tourists want, winning business, industry sectors and tourism performance, the new platform aims to support the tourism industry in their business development.

Find out more www.failteireland.ie/food

MAY THE 4TH BE WITH YOU

along the Wild Atlantic Way Fáilte Ireland celebrated May the 4th (the day when fans across the globe commemorate the Star Wars Universe) with events in Kerry and, following the success of the inaugural ‘May the 4th Be With You’ festival in Kerry last year, on Donegal’s Inishowen Peninsula over the May Bank Holiday weekend. Working with local tourism businesses and groups in both locations, this year’s festival was bigger and better with a host of fun activities for all ages including an epic lightsaber battle on the streets of Portmagee, a performance from Dingle native and five time World Champion Dancer David Geaney, who brought his hit Broadway show, Velocity, to Ballyferriter and Yoda Yoga on Port Ronan Beach in Donegal. Star Wars created a curiosity around the Wild Atlantic Way, following filming for recent films in locations along the route and raised its profile amongst fans both domestically and internationally. The ‘May the 4th Be With You’ festival capitalised on the enthusiasm for the film series and further raised the profile of the region to attract visitors not only over the May Bank Holiday but throughout the year.

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Cover Story

“It’s this traditional botanical brewing process that produces the depth of flavour, mouth feel and rich texture which today are the hallmark of Fentimans drinks.”

A brand that’s stood the test of time Since 1905, Fentimans has been making the finest quality natural botanical drinks…

ward-winning artisanal beverages from Fentimans are hand-crafted using the finest natural ingredients from all around the world. To create a superior taste and wonderful mouth feel, Fentimans makes its drinks using the time-honoured botanical brewing technique. This traditional process takes a full seven days to make a Fentimans beverage. The original Fentimans recipe took the finest ginger root which was bruised, crushed and milled. The ginger was then placed in copper steam-jacketed pans containing spring water and gradually heated to simmering point. This induced the release and extraction of fine ginger sediment and a flavoursome botanical extract. The Botanical liquid was then filtered into a wooden vat. The finest herbs, natural flavouring, sugar and brewer’s yeast were added to the botanical extract and the liquid was thoroughly stirred. The live liquid was then left to ferment in the wooden fermentation vat and the live ginger beer was then decanted from the wooden vat into the iconic stone jars, known affectionately as ‘Grey Hens’. Here, it came up to condition and was ready to drink within a week. It’s this traditional botanical brewing process that

produces the depth of flavour, mouth feel and rich texture which today are the hallmark of Fentimans drinks. This is the Fentimans way which has stood the test of time – with the knowledge and expertise being passed from generation to generation of the Fentiman’s family. The result is a superior-tasting natural range of beverages. Fentimans soft drinks, which are vegan and gluten free, are available in a range of flavours; from Rose Lemonade to the classic Curiosity Cola, there’s something there for all tastes. The Hollows Alcoholic Ginger Beer, which is sweetened with a hint of pear juice and spiced with Chinese ginger root, is aromatic and refreshingly smooth. Made by its signature serve, with a dash of Angostura bitters and a slice of lime, it’s a surefire way to set your establishment apart from the crowd. Available in 750ml and 275ml glass bottles as well as 250ml cans there is a solution for every venue type. Fentimans is made up of a range of premium soft drinks, mixers and alcoholic ginger beers available in a variety of sizes. C&C Gleeson will be exhibiting at Taste from June 16th to 19th. For more information, contact your local C&C rep or visit www.fentimans.com

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Food Heroes

Jess Best knows

With Kai, Jess Murphy has mastered the art of a good lunch. Denise Maguire sat down with the awardwinning chef to talk about her love affair with Galway and why she champions Irish food producers

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Food Heroes

Galwegians and indeed the rest of the country have Failte Ireland to thank for the arrival of Jess Murphy to Galway eight years ago. A ‘Move to the West’ ad campaign kickstarted a love affair between the awardwinning chef and the city she calls home. “I saw the ad and immediately thought, I want to live there. My husband David was a little more sensible and suggested we visit for a couple of days first. I loved it and never looked back,” said Jess. Kai, the restaurant that Jess and David run together, will soon celebrate eight years in business. The restaurant has established itself into the very heart of the city, a mustvisit for tourists and a regular haunt for locals who know the local suppliers and relish the ever-changing seasonal menu. Earlier this year, Jess was named Blas na hÉireann Producers’ Champion 2019. In 2018, she was voted ‘Best Chef in Ireland’ in the Irish Restaurants Awards. “For the past 14 years, I’ve been completely staunch about Irish food. I’m Ireland’s food producers’ number 1 fan. I think sometimes it takes someone that’s foreign to come in and recognise the beauty in something. Winning the best chef award was huge. Ireland isn’t even my home country, so it was a great honour.” Growing up on a large farm in New Zealand instilled in Jess a passion for food. “It was my grandmother that gave me a love for cooking. I’ve wanted to be a chef since I was eight years old. That sense of cooking for people and making them happy, that’s what I wanted to achieve.” Stints in Thornton’s, Guilbaud’s, Bar 8 and a role as a cheesemonger in Sheridan’s came before the decision to set up on her own. “We had €3.10 in the bank and no investors. It was a big decision but absolutely the right one. We begged a bank loan and went from there. It was tough; I forgot to allow for a till in the budget, so I said to the guy selling the till, ‘this is going to be great, just lend me a till for six months, I’ll buy the best one you’ve got.’ So many people were amazing to us.” Dave is front of house while Jess runs the kitchen. “At the start, we had to explain that Dave wasn’t the

chef, that it was actually me running the kitchen and creating the food they were eating. Now that we have 24 staff members, the biggest challenge today is team management. Learning to let go and realising I’ve got a really strong team behind me and they’re capable of doing this on their own. I’m 40 years old now so I’ve got to trust people rather than be that chef that has to keep her head over the pot non-stop. I think that learning how to do that is just as hard as learning how to cook.” Business at Kai is very healthy. “We’ve got the Arts Festival coming up which always creates a great buzz in the city.” Local produce is highlighted across the menu and it’s clear that the relationships that have been developed with local suppliers over the past eight years are taken very seriously. “We’ve gotten to know farmers, fishermen and foragers up and down the west coast. We write the menu every night because we don’t know what fish we’ll get in. That flexibility and freedom lets us be creative in the kitchen.” Along with Jess, there are currently two other female chefs and one male chef working in the Kai kitchen right now. When I mention that my inbox is flooded with appointment notices about male chefs only, she’s got plenty to say. “There are lots of female chefs out there so if they’re not being sent in a press release, it’s the media’s job to go out there and look for them.” But if they exist, why are restaurants and hotels not shouting about their female head chefs in the same way they’re publicising their male chefs? “That’s a good question and it really annoys me. I feel like saying to these guys, put them forward, you know you’ll get more good publicity if it looks like you’re a gender balanced workplace.” A ‘take no shit’ attitude from the very start of her career has created a different kind of kitchen at Kai. “I’ve had a few screamers like we all did in the 90s but apart from that, I haven’t really come across too much antagonism towards me personally as a chef. At Kai, we work as a unit. There’s no bullshit in my kitchen; my lads are always respectful and non-personal.” Chefs at Kai work four days followed by three days off. “They get paid by the hour. I run a really different kitchen to a lot of other restaurants and it works. My wage cost is the same as everybody else’s and so are my food costs. The fact we’ve been in business for eight years shows that we’re doing something right.” Staff dinners at Kai are an opportunity for all members of staff, from the chefs and the KP to the barista, to get together at the end of a busy shift and unwind. “They really are second to none. Every night we have a family meal and it’s always beautiful. Tonight we have some amazing organic tomatoes coming in so we’ll have a tomato plate with some torn mozzarella and maybe some pork chops. Life is good.”

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Pushing Ireland’s Tourism Potential A NUMBER OF INITIATIVES BY TOURISM IRELAND ARE KEEPING THE EMERALD ISLE FIRMLY ON THE TOURIST’S RADAR Olga Wang, Chinese Embassy in Ireland (ﬁfth left); James Kenny (centre) and David Boyce (right), both Tourism Ireland; and some of the Irish tourism companies taking part in Tourism Ireland’s 2019 China sales mission.

TOURISM IRELAND LEADS BIGGEST EVER SALES MISSION TO CHINA Tourism Minister Brendan Griffin (back, centre), with the delegation of tourism companies from the island of Ireland and the US; Maria Melia, Department of Transport, Tourism and Sport (front, right); and Ruth Moran (front, left), Siobhan McManamy (front, third left), Alison Metcalfe (front, centre), Hillarie McGuinness (front, second right) and Paul McDonagh (back, fourth right), all Tourism Ireland, at the ‘Fill Your Heart With Ireland’ event in Boston

Tourism minister joins sales mission in Boston Tourism Ireland, together with a delegation of tourism companies from Ireland and the US, undertook a sales blitz to the Chicago, Dallas and Boston recently. Tourism Minister Brendan Griffin joined the sales mission in Boston, where he met influential travel professionals and journalists. Tourism Ireland has prioritised North America as a market which offers a strong return on investment, in terms of holiday visitors and expenditure. In 2019, Tourism Ireland aims to surpass the record-breaking performance of 2018 and to grow revenue from North American visitors by +8% i.e. €1.99 billion generated by 2.17 million visitors (+6%). A key message for Tourism Ireland is ease of access to Ireland from the US – and, in particular, the new American Airlines flight from Dallas to Dublin which will launch in June.

A record 26 tourism companies from across the island of Ireland, including 13 ﬁrst-timers, took part in Tourism Ireland’s recent 2019 sales mission to China. The companies were briefed by Tourism Ireland, ahead of the sales mission which took in four major Chinese cities – Guangzhou, Chengdu, Shanghai and Beijing. The sales mission targeted top Chinese travel agents and tour operators through a programme of workshops and networking events. Tourism Ireland used the sales mission to highlight ease of access from China to Ireland, with three direct flights to Dublin – from Beijing and Shenzhen with Hainan Airlines and from Hong Kong with Cathay Paciﬁc. The organisation also highlighted the British-Irish Visa Scheme, which enables Chinese travellers to visit both Ireland and the UK on a single visa of either country.

‘A DIGITAL DAY IN THE LIFE OF IRELAND’

Liam Campbell, Fáilte Ireland; Bridgette Brew, Galway 2020; US influencer Stefanie Michaels (aka @adventuregirl); Niall Gibbons, CEO of Tourism Ireland; and Richard McAniff, Steller, at the ‘Steller Meet’ event in the Guinness Storehouse.

In conjunction with Tourism NI and Fáilte Ireland, Tourism Ireland and Steller recently invited 28 of North America’s most followed and popular travel influencers to visit Ireland. These influencers collectively have a following of more than 53 million. At 12:01 am on Sunday, 28th April 2019, the influencers were dispatched around the island of Ireland, tasked with creating multi-media stories for the Steller app, the world’s largest travel storytelling app. They had 24 hours to create their stories through video and photos. The series of stories they created will be collated into a new collection on the Steller platform called ‘A Digital Day in the Life of Ireland’, revealing what 24 hours on the island of Ireland has to offer for travellers everywhere. Their stories will focus particularly on our hidden gems and lesser-known attractions and experiences.

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Stained glass installations celebrate GoT legacy in NI

Niall Gibbons, CEO of Tourism Ireland, in front of the ﬁrst ‘Glass of Thrones’, which is all about the House Stark

Pictured after the performance are (l-r) John O’Ceallaigh, The Daily Telegraph; Cormac Ó Suilleabháin, Tourism Ireland; Sinéad McPhilips and Paul Fahy, both Galway International Arts Festival; Kyle McAleavey, Travelzoo; Coman Kenny, Tourism Ireland; Gráinne McBride, Condé Nast Traveller; Dominique Green, Travelzoo; Ben Kelly and Lucy McInerney, both The Independent; and John Crumlish, Galway International Arts Festival.

SPOTLIGHT ON GALWAY IN LONDON The Galway International Arts Festival and Galway 2020 were highlighted to leading British cultural and lifestyle journalists in London recently. Tourism Ireland invited journalists from media outlets like The Daily Telegraph and The Independent to attend the opening night of Rooms – an interactive stage performance by Enda Walsh – at the Barbican. After the performance, the journalists had the opportunity to meet playwright Enda Walsh, as well as John Crumlish and Paul Fahy of the Galway International Arts Festival. The event was part of Tourism Ireland’s programme of promotions to highlight Ireland to its ‘culturally curious’ audience in Great Britain.

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A giant, stained glass window has been unveiled opposite the entrance to Belfast City Hall – part of Tourism Ireland’s new Game of Thrones campaign. After a decade of filming and production in Northern Ireland, Game of Thrones is finally drawing to a close. Timed to coincide with the eighth and final season, the campaign – called ‘Glass of Thrones’ – has been created by Tourism Ireland in partnership with HBO and is rolling out to millions of fans in 10 markets. As each episode of the final season airs, six beautifully crafted stained glass windows are being installed across Belfast. Each window highlights a key House from the show, with a series of panels depicting the most exciting and talked-about moments from the entire saga. By the end of series eight, the stained glass windows will form a new Game of Thrones trail, leading fans across Belfast to the final window at the Titanic Studios, where much of the show has been produced.

HIGHLIGHTING THE WILD ATLANTIC WAY IN GERMANY Millions of people around Germany have been seeing eye-catching ads for the Wild Atlantic Way, running on digital screens located in prominent, central locations in seven different cities. It’s all part of Tourism Ireland’s latest promotion in Germany, in conjunction with Fáilte Ireland, to highlight the Wild Atlantic Way to German holidaymakers. The monthlong campaign has been underway in German cities with direct flights to Ireland including Munich, Stuttgart, Frankfurt, Düsseldorf, Cologne, Hamburg and Berlin. The campaign also included a 15-second video ad, running on digital TV and a partnership with TripAdvisor, with ads for the Wild Atlantic Way reaching German travellers researching holidays in Ireland.

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Finance

Clever Investment What do hoteliers need to keep in mind when investing in hotel assets? Mairea Doyle Balfe investigates

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Finance

REST OF IRELAND - HOTEL EXTENSION FEASIBILITY 80-Bed

100-Bed

€

REVENUE Rooms

1.96m

Food & Beverage & Other

3.56m

4.45m

Total Revenue

5.52m

6.90m

Gross Operating Proﬁt GOP (%)

1.26m 23%

1.70m 25%

EBITDA Before Finance

0.98m

1.37m

EBITDA Before Finance

18%

20%

ver the past decade, the Irish hotel sector has experienced a prolonged period of financial growth. This growth comes off the back of a positive global and domestic economy and strong demand from growing visitor numbers. International tourists have grown from 7.6 million in 2014 to 10.6 million in 2018 and in 2019, many Irish hotels will have achieved some of their strongest business KPIs. Average Room Rate in 2018 for Dublin hotels, for example, was at an all-time high of €131 (source: STR). However, it should be noted that while the Irish hotel sector is currently in a good place, it has come at a price. In the early 2000s, the availability of an accelerated capital allowance scheme fuelled expansion, development and growth in the hotel sector in Ireland. While tourist numbers were growing and the economy was doing well, the financial feasibility of some hotel developments during this time was questionable. The subsequent downturn in the economy meant declining revenues and profits in the sector. Hotel values declined, cashflow was reduced and banks/NAMA took possession of hotel assets to resell them at prices well below their replacement value. During this period of restructuring, there was almost no reinvestment and many hotels became tired and out of date. As the economy recovered and the landscape improved, foreign investors purchased Irish assets and began upgrading these properties. This reinvestment in the sector enabled hotels to yield a higher average room rate at a time when demand was also growing. This can be seen with the five-star Ashford Castle, for example, which has had a reported €50 million-plus investment, allowing the hotel to not only compete on a national level, but also on the international stage with other five star hotels and resorts. A shortage of new supply, coupled with growing demand against a backdrop of a robust national and international economy, has meant that Irish hotels

2.45m

20 Bed Extension results in € 397k increase in EBITDA Based on an IRR of 10% this could support investment of € 198k per room

have achieved a higher return on their investment. However, while there has been strong capital appreciation over the last number of years, hoteliers are cautious about the future. Questions over whether we are at the top of the market together with the recent VAT increase and the Brexit issue, are making hotels more nervous about further capital investment into their properties. When exploring an expansion or a possible refurbishment, hoteliers need to determine what the optimum level of spend is and what the likely return on investment will be. Feasibility analysis and a review of the business will be key to determining the level and approach to investment and refinancing. At Crowe, we help hoteliers review the feasibility of projects. A comprehensive supply and demand analysis will include a full competitive assessment, reviewing facilities, pricing, perceptions and operating details. For example, if a hotel is looking to upgrade from a three star to a four star, it is important to look at who their new competitors will be and review their prices, the quality of their product and most importantly, how the upgraded hotel will compete for market share. In preparing financial projections for a hotel, it is important to review what could be achieved, with and without the proposed investment, over the next three to five years. A project of demand is important here, with data from sources such as Fáilte Ireland and the CSO alongside a hotel’s own projections and knowledge of trends within their local market. A hotel’s projected net profit/EBITDA (Earnings Before Interest Tax Depreciation Amortization) will need to demonstrate sufficient return to justify the project and cover the cost of capital – whether equity or debt. If a hotel’s EBITDA was €23k per available room and their investment €250k per available room, the ROI is 9%. It is important though, to ensure viability within the market that the property is in as the ROI of a hotel varies across regions and hotel class. Hotels are trading assets and thus are susceptible

to economic cycles, so it is important to consider what the return will be in the medium- to long-term, particularly if the project is an extension to an older asset. Preparing a sensitivity analysis can show available cashflow during periods of declining revenues/profits. Scenario analysis is also useful to help decision making as to whether to invest or not and where the investment will deliver the best return. If demand is consistent, such as in Dublin, a hotel can have a more secure investment strategy. This can be more challenging for a seasonal hotel, which relies on its peak seasonal trade to make its returns and generate cash. Revenue management has played a key role for seasonal hotels, with discounting and special offers aimed at key markets who have time and money to stay off-season. The level of RevPAR/EBITDA needed for a hotel to expand its footprint is dependent on a number of factors. Construction costs will be dependent on the site layout and how and where the rooms will be added. If the hotel already has a sufficient ground floor, then extending bedrooms solely will be more cost-effective. Take the following example of an 80-bed regional hotel adding 20 guestrooms. By adding the extension, the hotel gains efficiencies in fixed payroll and some other operating costs, which enables the property to increase the EBITDA percentage. A higher or lower Internal Rate of Return (IRR) requirement would impact the investment spend on the extension. In looking to refinance, interest rates and repayment schedules vary on a project by project basis, with different funders having varying offerings. A capex provision of say 3% may be a requirement to ensure continuous upgrading of FF&E (Fixtures, Fittings & Equipment). The cash available for debt service, along with other director’s loans/outstanding liabilities, may impact the payment schedule. Hotels in Ireland are being refinanced with both equity and debt. The location, facilities offered, financial performance and quality of a property will impact the loan available. In refinancing your hotel, it is important to have good management information and a good understanding of where you see your business in the short- to medium-term.

Mairea Doyle Balfe is Director, Hotel Tourism & Leisure at Crowe

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Acquisitions

Country Living On the back of an eighth acquisition, Sean O’Driscoll from iNua Collection talks to Hotel & Catering Review about the regional hotel industry and why the onus is on hotels to diversify

Tullamore Court Hotel

Sean O’Driscoll

Nua Collection employs over 1250 people across regional Ireland. That responsibility and commitment to areas outside the capital is something that’s taken very seriously by the group which recently acquired the four-star Tullamore Court Hotel, bringing its already impressive hotel portfolio up to eight. iNua was set up in 2012 by former banking investor Noel Creedon. His first acquisition was the Radisson Little Island in Cork, quickly followed by the Radisson in Limerick. Sean O’Driscoll, Chief Operating Officer, came on board in 2015 with the purchase of “The drink driving Muckross Park Hotel. The biggest difference between iNua and other policy happened hotel groups is, says Sean, its at the wrong time regional focus. “There has been a lot of talk in the industry about in light of Brexit Dublin and the need for hotels and and the economic that’s certainly true but early on, slowdown in we recognised that international tourism into Ireland is about seeing mainland Europe” the whole country, not just its capital. We identified an opportunity for a regional hotel group and so from the start, we focused on areas around the country,” said Sean. In 2018, turnover at iNua totalled €50 million while group occupancy came in at a very healthy 74%. “As a regional hotel group, we’re very strong in food and beverage, meetings and events as well as rooms. We saw €21 million in room revenue last

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year, €25 million in food and beverage and €5 million in leisure and spa. We’re very much focused on ground floor business at the moment as we know levels of growth in room revenue are set to decrease.” Earlier this year, the group held a conference on innovation within the food and beverage space. As a result, the group has plans in place to roll out coffee lounges across six of its hotels. “We’ve just announced a contract with Java Republic to achieve that. Trends have changed across mainland Europe; people socialise in different ways now and although that change is happening in Ireland a bit slower, it’s still happening. Our coffee lounges will reflect that change. Hotels need to respond to these changes or be left behind.” Another conference threw up more ideas as to how changing consumer needs can be catered to. “That was about finding out what our ground floor staff think, not just management, so we organised innovation teams to brainstorm how we can futureproof our business. We discovered that the trends in what people are eating for lunch have changed dramatically over the past 10 years. Vegan is huge so we’re we’re looking at developing more vegan dishes. Another strong trend is non-alcohol drinks so that’s another area we’re exploring. Kids clubs and a greater range of outdoor activities is also high on the iNua agenda. We’re constantly striving to adapt to these changes and adapt our business.” The VAT increase and stricter drink driving laws impacted the group’s food and beverage in the first quarter of 2019. “We expect food and beverage to grow by only 1-2% this year. There will be a slowdown and I don’t think it’s just the VAT increase. Changes in drink driving laws are having a fundamental effect on people coming out to watch a match and have a pint in the evenings. I’m also Vice President of the Irish Hotels Federation and I’m hearing about the impact of these regulations all the time.” As a PLC with over 900 rooms, iNua’s size and scale helps when it comes to factors affecting the industry. “However, I think it’s very tough out there for smaller businesses. I’m very concerned about the effect these issues are having on individual cafes and restaurants. I think the drink driving policy happened at the wrong time in terms of Brexit and in light of the current slowdown that’s happening in economies in Germany and mainland Europe.”

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Kilkenny Hibernian Hotel

Acquisitions

A lack of understanding about the relationship between regional Ireland and seasonality has helped create the tenuous situation that so many hotels outside Dublin are facing. “I lobbied a lot of politicians, as did the IHF. There was a huge focus on Dublin and the lack of hotel rooms in the capital but I feel there was a real slowness in getting “We’re not afraid to those rooms built. A lot spend money in our opened last year and there are more due to open this hotels. Over the past year but I felt that rural three years, we’ve spent Ireland was being punished on the issue. The €10 million in capex tourism sector has been and we’re spending hugely important to the recovery of the country; we 2.5 million this year on created 50,000 jobs and capital projects across we’ll continue to do so but our hotels” the change in VAT is going to cause a slowdown in food and beverage and I think it will particularly affect independent restaurants and cafes that don’t have scale. There just wasn’t the will to support the tourism sector despite the fact we’ve proved that we deliver jobs.”

The Radisson Blu, Cork

Hillgrove Hotel & Spa, Monaghan

Marketing for regional hotels is key, particularly during the off-season. “When the international numbers slow down in mid-October, there’s a long period until the 1st of May when visitors start to arrive again. We create a lot of leisure packages and our own events; we have concerts in off season and weddings are of course a huge part of our market. We do about 350 weddings a year across the group.” There are several criteria that need to be met before iNua makes an acquisition; a stable business mix consisting of corporate business, domestic leisure business along with some international business, weddings and strong loyalty in terms of local food and beverage. “We’re not afraid to spend money in our hotels. Over the past three years, we’ve spent €10 million in capex and we’re spending €2.5 million this year on capital projects across our hotels.” In relation to Brexit, Sean is keeping an eye on the situation at the border. “In Sligo and Monaghan in particular, we get a lot of business from Northern Ireland so we’re closely monitoring the effect of Brexit on the border. At the moment, we’re pleased to say that occupancy in both hotels is holding up very well. We’re not really exposed to the UK market but the concern there would be that hotels that do have a lot of UK visitors will feel a downturn and that will create more capacity.” So what’s next for iNua? “We have eight hotels at the moment and we have no set number in mind. It’s about jumping on the right opportunity when it presents itself. We certainly have the appetite to do another deal in 2019.” Although iNua is regionally focused, Sean and the team haven’t ruled out participating in the Dublin market. “We have the expertise to offer a consultancy service to companies so we’re open to lease or management contracts in Dublin, although we’re not looking to buy there currently.”

Radisson Blu, Athlone

Radisson Blu, Limerick

Muckross Park Hotel, Killarney

ISSUE 5 2019 | HOTEL

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CATERING REVIEW

24/05/2019 14:13

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22/05/2019 15/05/2019 15:44 12:11 10/05/2019 16:30

Business Matters

Senior Tourısm Is your hotel missing out? Active Retirement Associations are worth over €13 million to the Irish hotel industry. So why aren’t more hotels capitalising on this lucrative revenue stream? We spoke to Maureen Kavanagh, CEO of Active Retirement Ireland, to find out

ISSUE 5 2019 | HOTEL

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CATERING REVIEW

24/05/2019 08:57

Business Matters

“This type of ‘senior tourism’ is hugely important for hotels and hospitality businesses, particularly during off-peak times of the year. We would urge hotels to view older people as the valuable customers that they are”

survey carried out by Active Retirement Ireland, the national representative body for over 500 Active Retirement Associations throughout Ireland, has found that a large proportion of Irish hotels aren’t coming up to the mark when it comes to meeting the needs of older people. Over 3,000 members participated in the survey, which found that the vast majority of respondents (81%) had taken two or more leisure trips in the past 12 months, with 61% travelling within Ireland. The overwhelming majority (94%) of those surveyed had engaged in leisure travel over the past 12 months. The most popular destinations for Active Retirement members are Dublin (48%), followed by the West of Ireland (44%) and the South-East (37%). The majority of these trips (68%) lasted for two to three days. A recurring obstacle for older people when it comes to booking a hotel stay is the thorny issue of single supplements. “That’s why we developed the questionnaire in the first place; one of our members had raised the issue of the single supplement, asking if anything could be done about it. We decided to survey our members and see what the feeling was. Although it’s not a major barrier to booking, 74% believe it’s unfair,” said Maureen Kavanagh, CEO of Active Retirement Ireland. Although Maureen understands why it’s in place, she feels it’s an unnecessary restriction when Active Retirement members are booking midweek. “The results of our survey show that our members take two to three short breaks a year, off-season, mid-week. The addition of a single supplement when a hotel isn’t full seems unnecessary and unfair so we feel hotels could either greatly reduce or indeed abolish the practice in these cases.” Single supplement aside, the survey also found that shorter breaks are more popular amongst Active Retirement members. Only a quarter of respondents take week-long breaks. The majority of members travel by car, despite the fact they’re entitled to free travel. “A lack of joined-up transport makes travelling by public transport extremely difficult, especially for people in rural areas.” As with most people, price plays a major factor in their choice of venue or hotel. “Over 90% of our members are on the state pension but despite that, they’re willing to spend their money and head off on a well-planned short break or two as long as the price is right. Facilities in the hotel, location and local amenities are extremely important. We did an average calculation and found that Active Retirement Associations are worth in the region of €13 million to the Irish hotel industry – that’s based on 61% of our groups travelling in Ireland.”

HOTEL

So are hotels taking advantage of this cohort of people who are willing to spend money off-season, mid-week? “Some hotels are. We run a mailout service where hotels can put a bespoke package together which is sent out to our local groups. That’s actually where our members get a lot of their information. We encourage a hotel to produce a nice letter, clearly outlining their offers and what a group can expect when they arrive. Our members don’t get their information online; they like to see the hard copy and once they receive a brochure, it’ll be passed around the groups. ” Word of mouth is also very popular. “If a group goes to a hotel and they like it, they’ll pass that information on. We have a very strong network so that sharing of information is crucial.” There’s no doubt that the survey results show that Active Retirement members make a significant contribution to the Irish tourism industry. “This type of ‘senior tourism’ is hugely important for hotels and hospitality businesses, particularly during off-peak times of the year. We would urge hotels to view older people as the valuable customers that they are. Our members will very quickly run away from hotels that treat them as older people. Don’t assume that they’ll be happy to play cards in the corner or accept sub-standard food. Our members want amenities and leisure centres, they enjoy walking, tours and above all else, they love a hotel that makes them feel welcome.” An economy on the up has seen a shift in how group bookings are viewed. “We’re hearing from some of our most reliable tour operators and bus operators that they’re finding it difficult to get group bookings for our members as hotels feel they will be able to sell the rooms individually at a higher price. This was the situation pre-Celtic Tiger days and in the downturn, our group bookings were very welcome. However, we’re finding this mentality creeping back again. Active Retirement Ireland members kept the Irish hotel industry afloat during the recession so we would urge the industry to view the publication of this report as an opportunity to review their offerings and capitalise on their travel habits.” Hotels that are willing to waive the single supplement or substantially reduce it will be highlighted to Active Retirement members. “Hotels should also remember that our members also spend money in hotels. If they leave the hotel, they do so during the day. If a hotel puts on a bit of entertainment, they’ll stay put, have their few drinks and avail of all the leisure amenities. There’s money to be made there.”

CATERING REVIEW | ISSUE 5 2019

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24/05/2019 08:58

13 - 16 JUNE 2019

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20/05/2019 13:07 22/05/2019 21/05/2019 15:44 10:54

Advertise with us Upcoming Hotel & Catering Review features include:

° The Suppliers Issue ° The Food Issue ° The Waste Issue ° The Beverage Issue ° The Energy Issue

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22/05/2019 15:45 15:33

Books

Books out this month....

Pod Life...

Find your next favourite John podcast with our pick of the best

Gin Austen: 50 Cocktails To Celebrate The Novels Of Jane Austen Author: Colleen Mullaney Publisher: Sterling Epicure RRP: €10.45 Available: amazon.com In six novels, Jane Austen captured the fancies and foibles of Regency England and every page of this book celebrates the picnics, luncheons, dinner parties and glamorous balls of Austen’s world. Discover an exotic world of cobblers, crustas, flips, punches, shrubs, slings, sours and toddies, with recipes that evoke the past but suit today’s tastes. Raise your glass to Sense and Sensibility with a Brandon Old-Fashioned, Elinorange Blossom, Hot Barton Rum, or Just a Dashwood. Toast Pride and Prejudice with a Cousin Collins, Fizzy Miss Lizzie, Gin & Bennet, or Salt & Pemberley.

Salt & Straw Ice Cream Cookbook Author: Tyler Malek and JJ Goode Publisher: Clarkson Potter RRP: €22 Available: amazon.com Based out of Portland, Oregon, Salt & Straw is the brainchild of two cousins, Tyler and Kim Malek, who had a vision but no recipes. They turned to their friends for advice - chefs, chocolatiers, brewers and food experts of all kinds and what came out is a simple base that takes five minutes to make. Using that base recipe, you can make dozens of Salt & Straw’s most unique flavours, including Sea Salt with Caramel Ribbons, Roasted Strawberry and Toasted White Chocolate and Buttered Mashed Potatoes and Gravy.

T SOME CHECK OU ST FO OD E B E H T F O BO OKS R E L AT E D ASTS A ND P OD C

Shelf Book

YouTuber Quilter, also known as the Food Busker, travels the world to explore cult foods in this brand new podcast from Global. He’ll investigate the foods that have attracted a religious following, unlocking their secrets and exploring the (sometimes) weird history behind them. He’ll also attempt to make the dish and then share the pitfalls, successes and hacks so you can impress your friends and family with your culinary capability. Listen on Global Player or wherever you get your podcasts

The Katchup Described as ‘no-holdsbarred conversations about all things food’, this podcast looks at the back stories behind restaurants, food brands and chefs, as well as exploring food-related news and topics. Recent episodes have discussed whether breakfast is ‘cancelled’ and how to navigate food on a first date. Download at podbean.com or listen on Stitcher

A Taste of the Past For something slightly different, follow culinary historian Linda Pelaccio as she goes on a weekly journey through the history of food. This podcast features interviews with authors and scholars, who discuss topics from the food culture in ancient Rome to the deli counters of today. Download at heritageradionetwork.org or listen on Stitcher

ISSUE 5 2019 | HOTEL

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Food Busker’s Cult Food Stories

CATERING REVIEW

24/05/2019 09:02

Back Bar

The Rabbit’s epic road trip For their new book, the owners of the Dead Rabbit bar visited 111 pubs and every working whiskey distillery in Ireland

T O’Lochlainn’s Irish Whiskey Bar, Co Clare

The Hole in the Wall, Kilkenny

HOTEL

Dick Mack’s Pub, Dingle

he owners of The Dead Rabbit bar in New York returned home recently to launch their new book, “From Barley to Blarney, a Whiskey Lover’s Guide to Ireland”. Written by Sean Muldoon and Jack McGarry, together with fellow Irish native and Irish whiskey expert Tim Herlihy, the 272-page hardbound book is a portrait of 22 of Ireland’s distilleries and their bottlings, 50 of its renowned pubs, as well as recipes for 12 original Irish whiskey cocktails. To research the book, Muldoon, McGarry and Herlihy conducted two, month-long whirlwind tours in a VW bus driven by McGarry’s father. They logged over 4,000 miles, visited 111 pubs and every single working whiskey distillery on the island. Brief histories and profiles of the 22 distilleries and 50 pubs are included, from popular spots to lesser known hidden gems. The daily routine included visiting four pubs a day and one to two distilleries, as well as revisiting the pubs in the evening to see them in action.

‘From Barley to Blarney: A Whiskey Lover’s Guide to Ireland’ is available to purchase from The Dead Rabbit’s website, from Amazon and through bookstores across Ireland, priced at €24.99

CATERING REVIEW | ISSUE 5 2019

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24/05/2019 09:01

Repakâ&#x20AC;&#x2122;s 3,000 Members have helped fund packaging recycling in Ireland for over twenty years. Join our network of almost 400 Hotel Members and make 2019 the year you go green.

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22/05/2019 15:46 15:21

Over 75 years of financial support and advice to Irish hotels Crowe is Irelandâ&#x20AC;&#x2122;s leading hospitality advisor. Over the years we have developed an unrivalled understanding of the Irish hotel industry and established a reputation for providing innovative and practical solutions to clients within the hospitality sector. Our Dublin-based team provide expert, impartial advice on hotel projects at every stage of the lifecycle. We help hoteliers make smart decisions today that create lasting value for the future. Smart decisions. Lasting value.

To find out how we can help your hospitality business succeed, contact: Aiden Murphy, Partner T: +353 1 448 2200 E: aiden.murphy@crowe.ie Audit / Tax / Advisory

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www.crowe.ie

22/05/2019 07/05/2019 15:47 12:36

Hotel & Catering Review - Issue 5 2019

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