Skip to content

Search

Latest Stories

Magnuson Hotels founder speaks before U.K. Parliament

He emphasized the need to support independent hotels in U.K. and U.S.

Magnuson Hotels founder speaks before U.K. Parliament

THOMAS MAGNUSON, CEO and co-founder of Magnuson Hotels, stood before the House of Lords in the British Parliament last week and spoke on what hotels in the United Kingdom need to continue their recovery from the COVID-19 pandemic. Much of what he said applies to U.S. hotels as well, he said.

The key to success in the U.K., Magnuson said in his address, is preserving independent hotels.


“Not all hotels are the Savoy,” Magnuson said. “Most hotels in the U.K. are small, family owned, and endangered.”

In the presentation to the Travel Technology Initiative, hosted by the Baroness Ros Altmann, Magnuson said there has been a rapid decline in the number of U.K. hotels owned by independent private businesses.

In 2010, independent hoteliers represented 78 percent of the U.K. hotel industry, Magnuson said. He reported that publicly traded branded hotels combined with globalism powers have reduced the native share to 50 percent in 2022.  Magnuson also said that at today’s change rate, the U.K. independent hotelier share will fall to 22 percent by 2026.

In Magnuson’s presentation, he said that even though the U.K. hospitality industry is the second largest job creator in the country and contributes over £100 billion per year to the U.K. economy, it is overlooked that 72 percent of U.K. hotels have 50 rooms or less.

He founded Magnuson Hotels in 2003 with his wife, Melissa, with the intent of providing family-owned independent hotels with access to global travel agencies and internet bookings.

“We knew owners of independent hotels and their families represented the foundation of the hotel industry, and to compete and capture a fair share of their local markets, they needed effective services and comprehensive support,” Magnuson said.

Magnuson said that Airbnb, founded in 2008, already represents listings equal to 88 percent of the total U.K. hotel room supply. By 2026, it is estimated that Airbnb supply will be 14 percent greater than the total U.K. hotel room inventory.

The U.K. hotel industry has yet to recognize Airbnb rooms as part of the industry, Magnuson said.

“Hotel owners across the country maintain that because Airbnb rooms are not nationally registered as businesses, they are invisible competitors, and that these operators are not subject to the same regulations and costs as the rest of the U.K. hotel industry,” he said.

U.S. hotels also face similar competition from Airbnb, Magnuson said. He suggests the creation of a nationwide business registration process in both countries to include all hotels; chains and independent hotels as well as Airbnb listings.

ENEWS 06 22 22 Magnuson at HOL second From left, Thomas Magnuson, Baroness Ros Altmann, who hosted Magnuson’s speech before the Travel Technology Initiative in the HOL, and Melissa Magnuson.

“With a better understanding of all U.S. hotel operators, more thought can be given toward planning that will benefit all,” Magnuson said. “For example, the U.S. has one of the lowest historical occupancy rates worldwide pre pandemic. The average life span of a midscale U.S. hotel is 38 years, yet publicly traded franchise chains constantly drive new construction at the expense of local businesses who are already paying taxes and employing locals.”

The proliferation of chains in the market perpetuates a belief that standardized and new hotels are preferable to consumers. That is ultimately damaging to local economies and small business owners who are unable to compete with global chains, Magnuson said.

“Both U.K. and U.S. hotel owners need to be aware of how fast all control has been ceded to publicly traded brand chains and OTAs that are not locally invested, are focused on EBITDA through job automation, and not focused on local organic job growth,” he said. “When all communities become bland replicas of each other, with identical outlets serving global entities, local uniqueness and identity, the primary drivers of tourism, goes away. Just think about the U.S. and U.K. before 2001. All these effects have moved into hyper speed since then, but we still hold hope that what makes us all special and unique can prevail in the long run.”

For the U.K., Magnuson also suggests designation of protected status for those independent hotel entities that are privately held or non-public, and U.K. business based. He also recommended a national requirement of area impact studies for all proposed new hotels, as U.K. occupancy has already fallen from high 70 percent to low 60 percent in the provinces.

Magnuson Hotels added 80 franchise agreements for its Independent Collection in the U.S. and U.K. in 2021, the company announced in February. Occupancy for the collection rose 31.3 percent and RevPAR rose 43.5 percent over 2019 levels during 2021.

More for you

Colliers: US hotel assets improve in 2025, led by Northeast and Central regions

Report: Hospitality health up on travel, events

What are the key findings from Colliers’ 2025 Hospitality Outlook?

THE FINANCIAL HEALTH of hospitality assets, especially in the northeast and central regions, is improving, driven by leisure travel and the return of conferences and events, according to Colliers. U.S. hotels saw RevPAR rise 2.4 percent, ADR 1.9 percent and a slight uptick in occupancy from April 2024 to March 2025.

Colliers' 2025 Hospitality Outlook report found that some regions are still returning to pre-pandemic demand levels, while others are reaching prior cyclical peaks.

Keep ReadingShow less
Extended Stay America survey 2025

Study: Extended-stay hotels feel more like home

What makes extended-stay hotels better than vacation rentals?

EXTENDED-STAY HOTELS OUTPERFORM vacation rentals and apartments in comfort, value and sense of home, according to a survey by Extended Stay America. About 79 percent of respondents said extended-stay hotels are like a home away from home, while 82 percent said they offer a stronger sense of home than vacation rentals or apartments.

In the national survey by ESA and Wakefield Research, respondents preferred extended-stay hotels over other options, citing amenities at 34 percent, comfort and familiarity at 33 percent and personalization at 30 percent.

Keep ReadingShow less
Zack Gharib Red Roof

Red Roof bets on people, tech for growth

Red Roof’s 2025 Vision: Innovation, Inclusion & Growth

RED ROOF IS focusing on strategic investments in people and technology to advance the brand amid evolving challenges, said Zack Gharib, Red Roof’s president. Gharib also spoke about the company’s new prototype, the power of the extended stay segment and human trafficking.

Regarding its diversity and inclusion efforts, the company focuses on its long-standing initiatives including SHE, inspired by Red Roof and Road to Inclusion, Diversity and Equality. SHE and RIDE recently helped Red Roof prioritize women and underrepresented communities with more than 30 new projects.

Keep ReadingShow less
Analyze competitive set data to boost revenue in the USA hospitality market

HotStats: Updated comp sets boost revenue

Why U.S. Hotels Must Regularly Update Their Competitive Sets

HOTELS SHOULD USE an updated competitive set to maximize revenue, control costs and maintain market position, according to HotStats. Those that fine-tune their comp sets consistently outperform others by using real-time insights to guide pricing, labor and revenue strategies.

The comp set should be reviewed at least once a year, HotStats wrote in a recent blog post.

Keep ReadingShow less
Two best friends reunite on a Days Inn trip for social media ambassador campaign

Days Inn launches $10K bestie contest

How Can You Win $10K with Days Inn’s Best Friends Contest?

WYNDHAM HOTELS & RESORTS’ Days Inn brand is launching a nationwide search to reunite five pairs of long-distance friends as brand ambassadors. The pairs, named “Days Inn-siders,” will spend a weekend highlighting a destination on the brand’s social media and receive $10,000, accommodations, flights and a daily stipend.

The initiative aligns with National Best Friends Day on June 8, and applications are open online through July 1, Wyndham said in a statement.

Keep ReadingShow less