Crieff Hydro - Homecoming For Local Hotels
(TRAVPR.COM) BRITAIN - February 4th, 2014 - Crieff Hydro, Scotland’s oldest registered trading company and leading leisure resort has announced that it has completed a deal which will see the Company operate and manage three key hotels on Scotland’s West Coast.
The Isles of Glencoe Hotel & Leisure Centre, The Ballachulish Hotel and the Oban Caledonian Hotel will now operate under the management of Crieff Hydro Ltd as part of a joint venture with the hotels’ owner. The deal has been brokered by Crieff Hydro Managing Director, John Jennett, who lives in North Argyll and built up these hotels in the 90s before they were sold.
Crieff Hydro has also concluded terms that will see it acquire two well-known Borders hotels, Peebles Hydro and the Park Hotel from McMillan Hotels later this month plus a further joint venture to operate the Yorkshire Hotel in Harrogate. Taken together the expansion moves will add over 400 bedrooms and £10M of revenue to the long-established
business - consolidating its position as one of Scotland’s leading hotel operators with nearly £30M of turnover and close to 1000 staff.
Speaking about the joint venture to bring these hotels under the stewardship of Crieff Hydro, John Jennett said, “I’m so pleased to bring a local and Scottish angle back to the management of these businesses which seem to have somewhat lost their way. I know they have huge potential to bring more visitors to the area and provide a better service to the local area. There are nearly a hundred less people working in these businesses than there were eight years ago. There is a big opportunity there that is about helping these businesses deliver a better service and perform better. The businesses will be run locally and from Crieff – having a local and Scottish heart will make a big difference. Like many hotels, these three properties changed hands at the height of the boom and they have since struggled because the financial setup hasn’t been quite right. Whilst there are lots of stunning success stories in Scottish tourism, the scenario here is the same one that’s often behind the less good news. Whether banks or investors - it’s turned out they have found themselves with something on their books that doesn’t quite add up. What profits there are get squeezed and re-investment is often the first thing to go – from there it can be a downward spiral where the customer experience suffers.”
Jennett has been MD of Crieff Hydro since 2011: the first non-family member to take up the post in the business’ long history. His partnership with Stephen Leckie has seen the business defy industry trends and grow by more than 10% since then to more than £18M. Last year, the pair were listed by Caterer Magazine as being amongst the most influential figures in Scottish Tourism alongside names like Andrew Fairlie and Nick Nairn. Jennett was previously involved in the three West Coast hotels now coming into the Crieff Hydro fold: as MD he built up the business in the 90’s before selling to Swallow Hotels in 2006. He was also the final Chair of HIE Lochaber.
Colin Johnston, owner of the The Isles of Glencoe Hotel & Leisure Centre, The Ballachulish Hotel and the Oban Caledonian Hotel said; “Although I’ve owned these hotels for a number of years, the setup has never been quite right. I’m delighted to enter a new type of joint venture with the team at Crieff Hydro who I’ve known for many years. Having been through the hands of a few operators, it will take time for these businesses to stabilise but I know they have great potential. This is about the long-term for me and for Crieff Hydro. In time, I am sure that the teams in the hotels, the customers, Crieff Hydro and myself will all feel really proud to be part of this story.”
The Company will develop plans for investment but the emphasis will be on looking after customers and the teams in the Hotels. Crieff Hydro has picked up three national awards for its training and development and is highly rated by its own customers.
Speaking about the plans for the three West Coast hotels, Chief Executive of Crieff Hydro, Stephen Leckie commented; “Over the coming years, our approach will be to develop and enhance the existing facilities in these hotels and build on their individuality and personality. They are all very different from Crieff Hydro as a destination resort. In time, they will all share the same warmth of hospitality and independent thinking we have at Crieff. We’ll have a particular focus on bringing together all of the local elements. Engaging with partner businesses locally and understanding what local customers want from these hotels will be really important to us. These are great destinations and while we aren’t setting out to make these the most luxurious hotels in the area - we do want them to be seen as real advocates for the villages and town they stand in.”
Part of the Company plans are to launch a Community Engagement programme in each hotel area, inviting local stakeholders to participate in developing the way ahead.
Leckie is also Chair of The Scottish Tourism Alliance and was awarded an outstanding achievement award by VisitScotland last year in recognition of his contribution to the tourism industry across the country.
Chris Taylor, Head of Tourism, Food & Drink at Highlands & Islands Enterprise said; “We are delighted that a business with Crieff Hydro’s reputation is choosing to invest in the region. HIE welcomes the commitment from the team at Crieff Hydro to engage with communities and local stakeholders, increase visitor numbers and to deliver the highest standards of service and hospitality in these properties. Tourism is crucial to the economy of the Highlands and Islands and a key priority for HIE.”
With years of low investment to catch up on, Jennett is quick to point out that the hotels may never return to the 4 Star standard they once were, but he believes this is less important than re-focussing on the business basics. “Running hotels is about hospitality – in other words looking after people first and foremost. Whether those people are your customers, your team or other people you deal with.” He says, “It has to be commercially sound, but if you come at it from a belief and a pride in hospitality then you are on the right track. It’s because of that belief that Crieff Hydro has thrived for nearly 150 years and I believe there will be a great future ahead for these three hotels.”
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