Striking the middle ground - Ed’s letter

The hotel sector has often made merry around the phrase ‘under-demolished mid market’, which has existed for so long at least 10 different people have claimed ownership.

Anything ‘mid’ has thus become tainted with the image of a faded provincial hotel that wasn’t fancy enough to attract the big bucks and not cheap enough to be an efficient bed-and-bag store for the value conscious. Hobbled by the costs of a definite buffet and probable bar, it’s the worst of all worlds.

The past year or so has seen a revival of interest in the mid market from the likes of Marriott, who has sensed that it needs to offer lower price points, but can’t quite bring itself to go the full economy. And so far, so good.

But away from the Bethesda massive, ‘mid’ has been seeing a revival in an unexpected form; that of stay length. The mid-length stay is bringing everyone hope, from operators to investors and just in time for what looks to be a tight year.

With no resolution in sight over the Business Rates increases, margins are looking less attractive than ever. Enter the growing popularity of the mid-length stay, settling in between four and 14 days.

This blending and merging of the weekend trip and the fortnight away has become more popular as the working world becomes more flexible; facilitating remote working and the opportunity for longer breaks. The trend for a few short breaks every year against one longer one has helped to drive this.

In markets such as London, the sector is increasingly reliant on overseas guests, who come from father and father afield and, as a result, stay that bit longer.

The result of this is that, rather than fully cleaning a room every day, costs are kept lower. And, rather than having to sell that room every single day, distribution costs can come down. Everyone in the hotel can kick back and take a breath. And as we get into this year, the sector will need all the oxygen it can get.