A boom in the city

Business Travel World August 2007

The Hoxton could be the exception that proves the rule. The high cost of acquiring land and developing in the City would normally preclude budget properties but The Hoxton, which opened last year, is running at 90% occupancy. ”We are always full”, says proprietor Sinclair Beecham. “We describe the hotel as luxury budget, luxury where it matters and budget where it counts. Room rates are priced on the Easyjet model-the earlier you book, the cheaper it is, starting at £79 the £99 and £149-and we release 500 £1 rooms and 500 £29 rooms every three months. It is cheaper on a Sunday night than a Tuesday because occupancies are 70%-we have just dropped prices to £39, £59 and £79 and are filling up. I could try and get top price but if people will come back and stay for £30+ and enjoy it, they will come back and tell their friends about it.

The Hoxton was built on Brownfield site in the City and Beecham’s aim was to contain capital and operating costs and to provide good value for the customer. “We managed the capital cost, so there is not too much marble but the hotel is stylish and cool,” he says. “We have all the systems in place to change the bed linen, clean showers and take bookings and our linen, duvets and pillows are fantastic but we have none of the rip-off elements,” he says. Linen is Frette and duvets are duck down, just for the record. “What gives hoteliers the right to charge 100 times the cost of a phone call? We charge 5p a minute for calls to America.”

Room service is provided by the Hoxton Grille, which is outsourced to Room Restaurants, and a Lite Pret breakfast comprising yoghourt pot, fresh orange juice and a banana is included in the room rate. Otherwise guests may have breakfast in the Hoxton Grille from £8.50.

Hotel buffet breakfasts are a bone on contention to Beecham. “We provide a sustainable breakfast and if guests want to go to the restaurant, they will pay for what they order and not for what they don’t eat,” he says.