Golden era for Glasgow hospitality thanks to games legacy - Johnston Carmichael

On the two year anniversary of the close of Glasgow’s Commonwealth Games, the city’s hospitality industry is in a better place than ever before.

That’s the opinion of industry expert Hugh Boyle, partner and head of hospitality and tourism at accountancy firm Johnston Carmichael.

And with another major sporting event on the horizon, the European Sports Championships in 2018, the city’s booming hospitality sector is ready for action.

“The international stature of Glasgow 2014 gave the city a chance to shine in front of millions”, said Hugh.

“A number of new hotels established themselves in Glasgow ahead of the games and many existing hotels were refurbished to put Glasgow’s best foot forward and meet demand.”

A number of big hotel chains have moved into Glasgow in recent years including Village Hotel, Travel Lodge and ibis Styles Hotel. This trend is continuing, with more looking to enter the market.

Despite fears there would be a flat period after the conclusion of the games, this has proven to be far from the case.

Hugh added: “Occupancy levels are still high and many are surprised at how consistently buoyant the hospitality sector has been since 2014.

“The continuing investment in Glasgow from big brands moving in, or looking to move in, is a real vote of confidence for the city. Take Edinburgh-based Apex Hotels as an example, they refurbished the former Marks Hotel in Glasgow and opened its doors in October last year.”

Another key to Glasgow’s transformation is The SSE Hydro. The music and entertainment venue handled more than one million ticket sales last year, making it the third-busiest music arena in the world, attracting the biggest names in music from Fleetwood Mac to Taylor Swift.

“The ‘Hydro’ effect has revolutionised Finnieston and the surrounding area”, said Hugh.

“Almost every gig plays to a sold out audience of not only Glaswegians, but also tourists who travel to the city especially. Pubs and restaurants are packed on nights when gigs are on and rent in this postcode has risen exponentially. Just 15 years ago the area around the SECC was empty; now it is arguably one of Glasgow’s most vibrant areas.

“The Emirates Arena in the East End is another prime example of Glasgow’s regeneration. Last year the sporting venue hosted the Davis Cup semi-final and this year saw British Athletics host the Indoor Grand Prix, driving footfall to the area.”

However, the accountant who joined the Johnston Carmichael team in March 2014, believes while there are some risks on the horizon, the industry is malleable enough to react and adapt.

He added: “Political uncertainty may have a knock-on effect in Glasgow’s hospitality sector as disposable income could be typically lower, impacting spending in bars and restaurants. However, it’s too early to say for sure how this will affect spending habits.

“In addition, changes to National Living Wage and Auto Enrolment for Pensions is bound to have an impact on the hospitality sector where margins are already tight. The beauty of the sector, especially in Glasgow is how well restaurants and hotels weather storms and evolve to deal with different economic climates.”