A Hospitality Facility Development or Refurbishment - Research Paper Example

?The Lavish Savoy Hotel: Luxury for Londoners and Travelers Introduction The Hotel Savoy still stands erect in London after 122 years of trials and triumphs. In this current century, people do not only stay in hotels for just mere accommodation but also for luxury and great hotel service. With all the hotels mushrooming throughout the London metropolis, Hotel Savoy successfully maintained its reputation as London’s premier luxury hotel. The secret is the constant update with the latest trends in hospitality management while preserving the hotel’s original qualities. The banner “The Character of London” was successfully upheld through the hotel’s various refurbishment efforts to exude the luxury for the 21st Century. Hotel Savoy’s legacy of being the first luxury hotel in London was preserved with the renovations and series of changes they made to make the establishment more pleasing to the customer’s taste and according to environmental trends. Hotel Savoy History It all started with a piece of land given by King Henry II to Count Peter II of Savoy. There, Peter II built the Savoy Palace. The structure underwent several destructions especially that it was built at the time when Britain was at serious political strife. After few centennials, a theater in the same place was built by Richard D'Oyly. D'Oyly, a constant traveler, was inspired with the hotel he had seen in the United States, and this inspired him to transform the theater into London's first luxury hotel, the Hotel Savoy (Peck, 2010). Ever since Hotel Savoy became more than just the owner’s concept, it has been enjoying a celebrity-like status, just like their guests. Being the first hotel in London to offer electricity services and lift (then called as ‘ascending rooms’), the success became sensational that the most famous people in various fields never fail to drop in Hotel Savoy whenever they visit London. Notable figures who became frequent visitors of Hotel Savoy include Katherine Hepburn, Oscar Wilde, Coco Chanel, Bob Dylan, Queen Elizabeth II, Prince Charles, The Beatles, Elizabeth Taylor, and many more (Savoy, n.d.). A-list customers such as the above mentioned made the hotel legendary. Through the fast-paced changes, a good thing about the hotel’s management system is that it prioritizes customer satisfaction. In doing this, hotel staff and hoteliers were trained extensively to meet the discriminating customers. From bartenders to administrative staff, competence can be observed. Last 2007, the hotel was closed temporarily for an extensive overhaul and was reopened last year, complete with new features and more luxurious services (Anon., 2010). The Hotel’s Refurbishment After more than a centennial of luxury hotel service, Savoy’s owners decided to close it temporarily for refurbishment to take the hotel to a new level of elegance. In a report by Stinson (2007), owners of the hotel revealed that they plan to auction few of the items owned by the hotel such as the grand piano which Frank Sinatra once played when he was invited by the hotel some years ago, and the tiles of the ballroom which Hollywood star Marilyn Monroe and Her Royal Highness Queen Elizabeth II danced on when they visited the place. The starting prices of auctioned items began with more than 200 pounds to as high as 1000 pounds or more. However, hoteliers assured that the hotel’s trademarks such as the figure of Kaspar the Cat and everything found in the American bar will not be sold to preserve the antique feel of the establishment (Stinson, 2007). Customers who are frequent in the hotel are not quite sure about the changes the management had decided because there might be a lot missing in the hotel and they might lose nostalgia of their previous visits; however, the hotel heads were assuring the customers that Savoy will still be recognizable. The Edwardian features and Art Deco style of the hotel would be maintained and developed. Financial analysts did not believe that the hotel’s timing in refurbishing the property is good, considering the financial crisis experienced throughout the world. The decrease of customers since 2001 indicates that the 9/11 aftermath is very much apparent in London, especially that many of its guests are Americans (Frary, 2009). American travelers are the hotel’s primary target market; after all, the idea originally came from the founder’s amazement in American hotels (Guyon, 1996). According to Tim Sanders, more customers are preferring budget hotels compared to the more luxurious ones (cited in Frary, 2009). This is probably the aftermath of the 2009 global recession preceded by the bankruptcy of Lehman Brothers of the United States. It was also observed in the same study by Tim Sanders that long hotel stay is declining to become an option for travelers (Koumelis, 2009). As seen in figure 1 of appendix A, short stays are more preferred by most customers. This had even declined at 2009. From this graph, it can be perceived that regular hotel customers are opting for a more affordable accommodation such as having shorter stays or resorting to other accommodation options aside from hotels. With a budget of 100 million pounds reserved for the refurbishment, analysts said that the hotel should maintain, if not lower, the cost of hotel rooms just like what other hotels did or else, the refurbishment idea will not serve a long-term effect. Customers may be excited to see what the hotel would offer after the refurbishment especially for their regular customers. This may arouse the customer’s curiosity and would significantly increase the hotel’s sales but curiosity is not a lifetime factor; thus, the renovation should go beyond than just having newly constructed rooms and fancy lobbies. In an interview with Savoy’s General Manager, Kiaran MacDonald, it is revealed that the hotel’s original budget to restoration and allotted time period were not met. From ? 100 million budget intended, the expenses grew higher to ? 220 million due to some unexpected infrastructural defects found because of the hotel’s age. Also, from a 17-month target, the re-opening was delayed by 19 more months. The balcony of the hotel, a part of the building which was closed in 1910, was re-opened to maximize the hotel space and to design more rooms (cited in Harmer, 2010). It was realized that the balcony was in a horrible state and would need more days to reconstruct the balcony alone. Old rooms were also renovated and installed with new bathrooms which cost more than ?100,000. Circumstances such as these made the renovation costlier and more delayed for the previously scheduled opening. On a brighter note, the delayed re-opening caused the hotel to feel the peak of global recession last 2009; while the General Manager believes that the country has already recovered from the crisis as soon as the hotel re-opens (Cleary, 2009). Several amenities were changed and added upon the hotel’s refurbishment. The hotel’s history as a favorite accommodation of notable celebrities was used as an added feature of suite rooms. Personality Suites honor famous guests who stayed in the hotel for some time. Celebrities like Charlie Chaplin, Marlene Dietrich, and Frank Sinatra were given tribute by the hotel. The Beaufort Bar was decorated with golden leaves on the walls each worth ? 38,000. A gazebo which became a center of attraction was added to the Thames foyer teashop. As part of the lavish overhaul, Savoy also went more environment conscious through the hotel’s newest rules and amenities. The refurbishment was dubbed as London’s “biggest green make-over to date” (Lee, 2010). Energy efficient equipment will help the hotel and its customers to have a "40% reduction in overall energy consumption and an annual carbon reduction of around 3,000 tonnes" (Lee, 2010). In a hotel as huge as Savoy, it is expected to be energy intensive. However, the hotel has purchased new technologies to make it more energy efficient. A total of ? 2.4 million was spent for environmental initiatives alone. According to Hammond (2010), "the computerised metering room" is an ideal asset of the hotel as it allows them to keep track of the energy usage and make necessary moves in case it exceeds the desirable level of consumption. Through the hotel's own combined heat and power plant, they would not have to rely on the national energy supply "by 50 per cent." Heat coming from the kitchen and other areas are also re-used "to preheat domestic hot water." Even cooking oil is recycled as biodiesel. The idea of having “green butlers” is also a good concept in promoting ‘green services.’ Unlike typical butlers, green butlers use eco-green materials in packing and unpacking luggage, recyclable napkins when serving morning coffee and others (Hammond, 2010). A more interesting part is that butler service is not introduced by the hotel for the past 50 years. Bringing back the butler service in the hotel would help it reminisces English culture. Aside from the butlers, other hotel staffs are also encouraged to attend the hotel’s “green training” to reduce the amount of carbon dioxide the hotel is producing each year (Lovell, 2010). Moreover, the hotel is also actively partaking with the responsibility of keeping the cleanliness of the Thames River. The view of the Thames is one of the hotel’s attractions as seen through some of their rooms and with the restaurant Thames Foyer. Return of the Development and Customer Satisfaction The total face lift of the hotel and the total cost of the refurbishment seem to satisfy customer taste. Customers do not only want good ambiance, but excellent service as well. Stephen Fry (2010), the first customer to experience the refurbished Savoy stated that the cost of renovating the hotel is worth the result. As a customer who stayed at the hotel for six months back in the 80's, he noted that the changes of the hotel expand its market from accommodation to an ideal venue of special occasions. The staffs were even friendlier than before. Room rates are expectedly expensive, considering the cost of the refurbishment. Economy rooms are priced ? 500 per night or lower during non-peak seasons while suites are priced ? 1,500 and above, depending on the number of beds and type of theme (Fry, 2010). Although expensive, Fry (2010) admitted that the hotel is a perfect blend of “show-business and culture and art and so on.” The reviews are almost perfect, but one comment must be considered immediately. With the value of the refurbishment, it would be fine to think of an extraordinary and perfect service and amenities; however, features that are PWDs (persons with disabilities) friendly facilities are not available. According to the report of Blunden (2011), legal journalist Husnara Begum had a difficulty attending an event because of the absence of a “direct wheelchair route.” The hotel staff helped her to get to the venue but it was inconvenience in Husnara’s part as she was lead to the hotel’s kitchen just to reach her destination. Savoy’s General Manager Kiaran MacDonald says that the hotel is currently addressing this issue through purchasing stair climbers as compliance to the Disability Discrimination Act of 1995 (Blunden, 2011). Conclusion Luxury in a time of financial crisis is hard to attain, but the Hotel Savoy in London’s definition of luxury is well appreciated. In terms of service and refurbished amenities, the hotel practically did not fail its customers in the delay of re-opening. One deficiency, however, is their lack of PWD-friendly facilities. The refurbishment could be a long-term marketing strategy for Savoy, contrary to what analysts have said about its effects. The good thing about the refurbishment is that customers who have seen the hotel before the renovation can still recognize the good old Savoy they once enjoyed. Added with the new facilities and eco-green equipments and services, the hotel should truly enjoy a better acceptance from tourists and those who want to stay at hotels for special occasions. Of course, a glamorous building should also complement with the type of service the hotel gives. References Anonymous, 2010. Savoy reopening delayed as refurb costs double to ?200 million. Breaking Travel News, [internet] 12 April. Available at: http://www.breakingtravelnews.com/news/article/london-savoy-refurb-stalls-costs-soar-to-200-million/ [Accessed 20 July 2011]. Blunden, M., 2011. Savoy had ?220m refit but I could not get to room in my wheelchair. London Evening Standard, [internet] 1 April. Available at: http://www.thisislondon.co.uk/standard/article-23938079-savoy-had-pound-220m-refit-but-i-could-not-get-to-room-in-my-wheelchair.do [Accessed 19 July 2011]. Cleary, A., 2009. Savoy's luxury makeover adds to London hotel's woes (update 1). Bloomberg, [Online] 23 September. Available at: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aVbzOry0UfuQ [Accessed 19 July 2011]. ( Frary, M., 2009. Can the Savoy handle a downturn? The Times Literary Supplement, [internet] 24 March. Available at: http://www.timesonline.co.uk/tol/travel/business/article5966555.ece [Accessed 19 July 2011]. Fry, S., 2010. Stephen fry enjoys the vip treatment as he becomes first guest after ?220m refit. Mail Online, [internet] 11 October. Available at: http://www.dailymail.co.uk/travel/article-1319506/Stephen-Fry-reviews-The-Savoy-London-hotel-reopens.html [Accessed 19 July 2011]. Guyon, J., 1996. In London, Savoy hotel is putting on the ritz. The Wall Street Journal, [internet] 27 December. Available at: http://online.wsj.com/article/SB851640764739924500.html [Accessed 19 July 2011]. Hammond, R., 2010. The Savoy- a green hotel? [Online] Green Traveller. Available at: http://www.greentraveller.co.uk/blog/savoy-london-green-hotel [Accessed 19 July 2011]. Harmer, J., 2010. Restoring the dream at the Savoy hotel. [Online]. CatererSearch.com. Available at: http://www.caterersearch.com/Articles/2010/10/14/335490/restoring-the-dream-at-the-savoy-hotel.htm [Accessed 19 July 2011]. Koumelis, T., 2009. Contraction of the long stay leisure market. Travel Daily News, [internet] Available at: http://www.traveldailynews.com/pages/show_page/29979 [Accessed 19 July 2011]. Lee, M., 2010. London's Savoy hotel gets five stars for eco refit. Ecologist, [internet] 8 October. Available at: http://www.theecologist.org/how_to_make_a_difference/climate_change_and_energy/ 626664/londons_savoy_hotel_gets_five_stars_for_eco_refit.html [Accessed 19 July 2011]. Lovell, J., 2010. London's posh Savoy hotel reopens after a pricey 'green' makeover. The New York Times, [internet] 18 November. Available at: http://www.nytimes.com/cwire/2010/11/18/18climatewire-londons-posh-savoy-hotel-reopens-after-a-pri-64815.html [Accessed 19 July 2011]. Peck, T., 2010. Savoy refurb: rather fine, guests agree. The Independent, [internet] 11 October. Available at: http://www.independent.co.uk/travel/hotels/ savoy-refurb-rather-fine-guests-agree-2103171.html [Accessed 19 July 2011]. Savoy, n.d. Hotel History. [Online] Available at: http://www.fairmont.com/EN_FA/Property/SVY/AboutUs/HotelHistory.htm [Accessed 19 July 2011]. Stinson, J., 2007. London's fabled Savoy hotel slated for renovation. USA Today, [internet] 18 December. Available at: http://www.usatoday.com/travel/news/2007-12-17-savoyhotel_N.htm [Accessed 18 July 2011]. Appendix A Figure 1: Contraction of the long stay leisure market (Sanders, 2008, cited in Koumelis, 2009) Read More