S Hotels and Resorts PCL, a hospitality investment and management company and the hospitality arm of Singha Estate PCL, has announced the latest phase of its “3P” (“Profit, Portfolio, Planet”) strategy in the U.K., with renovations at several hotels including Mercure Manchester Piccadilly Hotel, Mount Royal Hotel Edinburgh and The Grand Hotel Leicester, besides extensive upgrades at eight other hotels.
The group’s asset enhancement strategy includes several key assets in the U.K. In line with the strategy, a renovation project has commenced at the 280-key Mercure Manchester Piccadilly Hotel, including upgrades to its guestrooms, corridors and lobby area. Additionally, at the 169-key Royal Mount Edinburgh City, overlooking the Edinburgh Castle, the renovation will encompass the hotel’s guestrooms, lobby, corridors and façade, as well as the popular restaurant Scott’s on Princes Street. The Grand Hotel Leicester is a 104-key property set in a Grade II-listed Victorian building, located close to the Cultural Quarter in Leicester’s city center. A renovation project will be undertaken to upgrade the hotel’s guestrooms and public spaces.
S Hotels & Resorts also recently completed the leasehold acquisition of the 91-key Mercure Glasgow City Hotel for £7.5 million, which will help to unlock the hotel’s full potential. This will be followed by a renovation of the rooms and public spaces in 2024.
Under the “Portfolio” section of the “3P” strategy, which is focused on an asset rotation and enhancement program, the group is maximizing its U.K. assets with the divestment of underperforming properties and the reinvestment of funds—supplemented by additional investment of around £16 million (approximately $20.1 million)—in the renovation of assets with high potential. This is expected to result in an occupancy rate of over 75 percent and a 10 to 15 percent ADR increase for these properties.
In 2021, S Hotels & Resorts purchased additional 50 percent stakes in 26 of its U.K. hotels. Additionally, the company recently completed the head lease acquisition of the 76-key Mercure Perth Hotel in Scotland, as part of its efficiency improvement strategy in the U.K. It has also disposed of three properties: Mercure Newbury Elcot Park Hotel, Mercure Burton upon Trent Newton Park Hotel and Mercure London Watford Hotel.
The group has also invested in the improvement of the IT infrastructure of its U.K. portfolio to optimize its guest experiences and drive operational and commercial efficiencies.
For more information, visit www.shotelsresorts.com.