Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Satellite TV for all to boost profits

John Shepherd
Wednesday 24 January 1996 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

JOHN SHEPHERD

Satellite television and telephones in every room and newspapers delivered every morning will give the 127 Travelodge hotels the impetus to move slightly up market and charge higher prices.

The hotel and leisure industries are rapidly dividing into two halves. One side is making a steady recovery from the recession - where Granada clearly reckons it will feature - while most companies on the other side are destined to be remembered as victims of the greed of free-spending 1980s.

Granada has argued that it can raise hotel prices and still extract cost savings out of Forte through redundancies, and stronger buying power.

The takeover victory comes as analysts are forecasting growth of 2.5 per cent in real disposable income for this year - with most of the increase earmarked for leisure spending. Granada is in a good position to take advantage by moving many of Forte's hotels to higher market tiers.

Forte was late to rise to the challenge, hanging on to the well trusted business methods in the belief - and it was not alone - that the recession would be short-lived. Forte was quite happy to promote the notion that it was the single biggest hotel operator in the UK, but it was nothing other than a small fish in a small pond.

Investors had to foot the bill for the management's mistakes. Dividends were cut a couple of years ago and there was little prospect of any restoration of dividend payments until Granada launched its assault.

Prospects for the hotel and leisure industries, which are increasingly interlocked, may look considerably brighter than for some time but Granada, despite its victory, is not going to be in a position to dictate the play.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in