According to a survey by RPBi, the majority opinion of the UK hospitality industry is in favour of Brexit. The hospitality sector is just one of many industries in the UK that will be affected by the outcome of the EU referendum on Thursday. And just as with many industries, it is difficult to pin down exactly how it will be affected. Nonetheless, it is true to say that after a result is announced for either outcome, uncertainty will finally be removed and business will return to 'normal'. Although we cannot fully predict what 'normal' will consist of next week, each outcome will inevitably have its pros and cons.

OUT:

Uncertainty clouds the 'out' result. In one of the most important decisions of recent history, Brexit would cause a shake-up of the economy provoked by a loss of confidence from investors, especially from overseas investment. In the worst case scenario Britain may fall into a recession and London's influence as a financial centre will inevitably come into question. Already reticent banks are predicted to be even more hesitant to invest in the hotel industry. Reflective of the general economic climate, hotel property prices are likely to stabilise or drop. However, saying that, in the likelihood that sterling will weaken, Britain may become more appealing to tourists as a more affordable, attractive holiday destination, which would be good news for the leisure and hospitality industry.

IN: 

Britain voting to remain in the EU will settle the economic market and bring confidence back to the M&A sector. As sterling is likely to strengthen there's a chance it will discourage foreign visitors and lead to reduced leisure demand.  Business travel on the other hand is likely to pick up again following a lull during uncertainty ahead of the vote. Banks are also likely to take comfort from a remain vote, and investment and other financial support for the hospitality industry may become easier to come by.

Ironically, leisure demand is likely to increase following a Brexit vote, while business demand will drop. Reticence and economic caution will inevitably underline the mood of a Brexit, despite specific industry predictions being difficult to ascertain. What is clear is that the mood of uncertainty, in the event of a Brexit, will lead to nervousness from investors which cannot be assuredly resolved until there is a complete withdrawal from the EU, scheduled for 2019. 

By Roddy Watt, CEO of The Hotel Management Company

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About The Hotel Management Company:

Launched in March 2016, The Hotel Management Company (THMCo) is a full service hotel management and asset management company primarily focused on the provincial/private UK hotel market.

THMCo aims to operate under management agreements with a duration of three or more years, taking total responsibility for operations, as well as providing asset management services for hotel owners already under third-party management.

Providing a fully integrated and comprehensive range of services to hotel owners, investors and property companies, THMCo adopts a more hands-on, proactive approach than is the norm, delivering solutions with passion and professionalism.

THMCo provides a fully customised service, tailored to the individual needs of every situation, be the assets in question high quality country house hotels, four or five star provincial hotels, city centre or resort properties.

THMCo stands apart in the industry thanks to the unrivalled expertise of its Board of Directors who are amongst the most knowledgeable and highly regarded in the sector, all with exceptional industry credentials. The Board comprises Jeremy Logie OBE (Chairman), Roddy Watt (CEO), Alan Murray (CFO), Jill Chalmers (Director), Peter Lederer CBE (Director) and Charles Prew (Director).

THMCo also offers a comprehensive range of advisory and support services via its partner company, The Buell Group, the largest advisory consultancy and services conglomerate in the UK for the hospitality and leisure sectors.

For more information on The Hotel Management Company please visit: thehotelmanagement.co

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