Jumeirah to Open a New Hotel & Residences in London

Company Expands Portfolio to Three Properties in United Kingdom

. October 14, 2008

LONDON, UK, September 25, 2006. Jumeirah, the dynamic and rapidly-growing luxury hospitality group and member of Dubai Holding, has been selected to create The Jumeirah Hotel at Beetham Tower. This $1 billion-plus, 51-story glass tower will combine spectacular luxury hotel accommodations and residential apartments.

"Jumeirah's brand essence is expressed in two words - 'Stay Different' - and this tremendous project enables us to work with the developers to plan for and ultimately deliver what will be one of the world's most unique luxury hospitality experiences," said Gerald Lawless, chief executive officer of Jumeirah Group.

Jumeirah formed a partnership with Beetham Organization to create The Jumeirah Hotel at Beetham Tower, about to be built on London's South Riverbank at the junction of Blackfriars Bridge and Blackfriars Road, subject to planning permission. The tower will stand 591 feet high, with a planned observation deck sitting 148 feet higher than the famed London Eye.

In London, Jumeirah currently manages Jumeirah Carlton Tower and Jumeirah Lowndes Hotel, which will make The Jumeirah Hotel at Beetham Tower the company's third property in London and contributes to Jumeirah's growing portfolio of hotels around the world.

"The Jumeirah Hotel at Beetham Tower will provide unmatched luxury for visitors to London and a natural synergy with our plans for the residential apartments at Beetham Tower," said Hugh Frost, chairman of Beetham Organization. "This will be a major new landmark and attraction for London."

The Jumeirah Hotel will be sited in the lower half of Beetham Tower and will have 261 spacious rooms and suites, a spectacular ballroom that will accommodate large-scale conference and banqueting events catering up to 800 guests, plus a number of smaller meeting venues. The hotel will have a variety of restaurants and bars, a state-of-the-art spa and health and leisure facility that will be located on the 26th and 27th floors of the hotel, with stunning views across the city. The hotel will open in 2011, and is expected to be a major attraction for visitors to the 2012 Olympics.

The residential apartments and penthouses above the hotel will be offered the services provided by the luxurious Jumeirah hotel. There will be on-site provision for 32 affordable homes in an adjacent building.

The new tower, designed by award-winning Ian Simpson Architects, will also have public facilities, including a new plaza wrapping around the base of the tower with cafes and restaurants and access via an express elevator to a five-story public viewing gallery located at the top of the tower.

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Revenue Management is still a relatively new profession within hotel operations and as such, it continues to evolve. One significant trend in this area is a shift away from using revenue as the foundation to generate key performance indicators (KPIs) and to instead place the emphasis on profit. Traditionally, revenue managers have relied on total revenue per available room (TrevPAR) and revenue per available room (RevPAR) as the basis of their KPIs. Now, some revenue managers are using gross operating profit per available room (GOPPAR) as their primary KPI. This puts profit at the center of revenue management strategy, and managers are increasingly searching for new ways to increase the profitability of their hotels. Return on Investment is the objective of any hotel investment, so it is only logical that profitability and ROI will be emphasized going forward. Another trend is an expanded focus on direct hotel bookings. Revenue managers know that one way to increase profitability is to steer guests away from online travel agencies (OTAs) and book directly with the hotel. This tactic also reinforces brand identity and loyalty, and encourages repeat business. In addition, it provides a valuable platform to market the hotel directly to the customer, and to upsell room upgrades or other services to them. Another trend for revenue managers involves automation in their software programs. Revenue management systems with automation are far more desirable than those without it. Automating data entry and logistics increases efficiency, allowing managers to spend more time on formulating strategy. As a bonus, an automated system helps with aggregating and interpreting data. The October issue of the Hotel Business Review will address these developments and document how some leading hotels are executing their revenue management strategies.