Hallmark Hotels plans to double estate in next two years
Hallmark Hotels, the four-star hotel chain founded by former Paramount and Q Hotels manager Arnold Schnegg in 2007, is aiming to double its estate to 10 in the next two years.
Speaking to BigHospitality, Hallmark managing director Schnegg said he is looking to open another two hotels in the UK this year, probably in the South West and the Midlands, taking the estate to seven. Another three could be in the pipeline for 2011.
He said: "The hotels we have already are in the North and Bournemouth, so it makes sense to fill the gap in the middle of the country. The last hotel we bought in Hull (The Elizabeth Hotel) is an ideal size at 100 bedrooms and we are looking for similar size properties to take on."
Hallmark bought the Elizabeth Hotel in Hull out of administration at the end of last year and is spending £3m to refurbish and rebrand it. The hotel currently employs 25 staff but expects to increase that number to more than 100 as occupancy increases and the conference and events facility is completed.
Business performance
Schnegg said despite launching the company a few months before the UK went into a recession, it was performing well.
"We were fortunate to secure funding from the bank before the recession and since then we have managed to turn around profits at the hotels we have bought which are showing substantial growth compared to the previous year," he said.
The company bought its first hotel, formerly the Belfry House, in Manchester in 2007 with backing from Manchester based Zeus Private Equity and has since acquired properties in Carlisle, Derby and Bournemouth.
Schnegg said he was looking for similar size properties to buy to add to his portfolio: "We have developed at great speed and things show no sign of slowing down. We would welcome information on hotels for sale, especially in the South of the UK," he said.
"Whilst we are growing rapidly, we are also ensuring that the Hallmark brand becomes synonymous with quality and always delivers an excellent experience, by ensuring each hotel has a team in place that is as excited about the growth of the brand as we are.”
