The collapse of the Esplanade hotel on Llandudno’s seafront last month saw staff made redundant and guests disappointed.
It was the fifth prominent seafront hotel in the resort to run into difficulties in the last six months.
This started in the summer with the Northern Powerhouse Developments’ hotels Queens, Belmont, and Llandudno Bay all going into administration.
These were related to the situation at the company - part of nine 海角视频 hotels entering administration - but sparked uncertainty over the short term futures of the sites, which all continue to trade.
They were followed by the Ambassador in October - another landmark hotel entering administration, although again the hotel remains open.
While they are all up for sale with hopes that deals will be completed there are concerns over cracks in the market with increasing competition from the likes of Airbnb.
So Business Live spoke to key figures from the town and the tourism sector, to ask, “Is the hotel sector in crisis in Llandudno?”
The Landowner
Edward Hiller, managing director of Llandudno landowner Mostyn Estates
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He said: "Three of these(hotels) were subject to a business model and ethic that was bound to go ‘pop’; it was only timing that was unknown. Another was part of a hotel group that has pulled it under.
"One other has relied on independent coaching trade and lacked the sort of investment it deserves.
“Sadly, in each of these circumstances there are disappointed guests, redundant staff and lost local supply chains. I am hopeful that this process and eventual sale will result in more sustainable businesses in the long run and understand there is good interest in almost all these premises.”
He added: “The revenue line is generally relatively stable, though at the lower end of the spectrum, the unregulated private short term lettings (AirBnB) have added significantly to the supply side.
“Costs have increased dramatically over the past few years; particularly increases in employment costs (living wage etc) Business rates, utility costs, third party marketing costs (booking sites). These have squeezed profits.
“To keep up with the competition, significant reinvestment is required ie premises need constant spend in order to just stand still. Also running hotels is hard work, with long hours and intensive on management in order to maintain quality.
“Those who think otherwise, would be in for a shock. I believe there is still a bright future for local professionally run hotels. Operators need to be alert to shifting demographics, and evolving trends.
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“The previous sentence probably answers all the questions why we have unfortunately seen a spike in hotel closures.”
The Commercial Agent
Tom O’Malley, senior business agent and hospitality specialist at Christie & Co
“I do a lot of work in Llandudno and from my experience, I would say there is no real issue.
“The area is a popular seaside tourist destination and this is driving strong investor interest for local hospitality room-based sites.
“We have sold a lot of these sorts of properties over the last two years and continue to have buyers looking in the area.
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“With regard to the hotels that have entered administration, three were all apart of the same portfolio. I don’t believe this is reflective of the current market but rather down to the company’s individual position in this case.
“There will certainly be no shortage of buyers for these hotels. Business rates could always be lower, however they haven’t appeared to be an issue for the room-based sector. More so, they are impacting high street retail sites and bars where rates are very high.”
The Tourism Chief
Jim Jones, North Wales Tourism
“The situation in Llandudno is the result of a unique set of circumstances that are nothing at all to do with the town itself.
“The position in relation to Northern Powerhouse Developments is currently being looked into so it would be inappropriate to make any comment about their hotels at this stage.
“On the plus side, Llandudno generally is benefiting from the boom in tourism that is seeing North Wales thriving as a must-visit destination. As a result, we tourists flocking here in record numbers and spending by visitors has rocketed to more than £3.2 billion a year.
“Much of our success is down the spectacular growth of the adventure tourism market which is drawing in people from around the world thanks to our burgeoning reputation as the Adventure Capital of Europe.
“Llandudno is perfectly placed as base for adrenaline seekers as well as remaining a magnet for the town’s traditional visitors.
“Apart from all its other attractions, the town’s promenade is a perfectly preserved classic of its kind and it’s no wonder Llandudno has been crowned as the Queen of Welsh Resorts. Let’s not forget Llandudno still has some of the best hotels in the business and at the recent Go North Wales Tourism Awards the resort’s St George Hotel was honoured as the best hotel in the region.
“Earlier this year six other hotels in Llandudno were named among the best in the 海角视频. The Elm Tree Hotel, the Lawton and Lauriston Court Hotel, Milverton House, Clifton Villa Guest Hotel, Annan Hotel and Karden House Hotel were all in the top 30 in the 海角视频 in the TripAdvisor Travellers’ Choice awards.
"The Elm Tree and the Lawton and Lauriston Court Hotel were also named among the best in Europe and the world. So, Llandudno also has many reasons to be cheerful and the long-term future of the resort is extremely bright as we enter a golden age for tourism in North Wales.”
The Verdict
It’s been a difficult few months for the hotel sector due to a number of factors.
But the verdict is that rather than reflective of an overall slump in the sector this is a blip, partly caused by unique circumstances at Northern Powerhouse Developments.
Having this number of prominent seafront hotels in administration is a concern but it is hoped that the coming months will see sales secured and the resort able to look forward to the summer of 2020 with huge confidence.