Flexibility pays off for Ramada hotel

REWARDING corporate customers with reasonable prices is paying off for one North West Hotel, which is trading 10% above budget.

The Ramada Hotel at Salford Quays- a four star,142 bed property, which opened in May 2008, says its good quality and flexibility are helping it to thrive in a tough market.

General manager Paul Gallon said although the hotel was built with MediaCity’s 2011 launch in mind, it is yet to see much of a benefit from the showpiece development.

“Our bread and butter is very much Trafford Park – which is still the largest industrial area in Europe – and the cream on the cake is football-related bookings.

“We have adopted a sensible and realistic pricing policy – which in these tough times has meant really good levels of repeat business.

“For example, on night where Manchester United are playing and we could charge guests a premium, we hold back 40% of the rooms for our local corporate clients at their normal rate.”

Mr Gallon said this had paid off with many customers now booking festive parties or Christmas lunches at the hotel.

In the year to date turnover stands at £2.7m -10% ahead of expectations.

The property is owned by independent London company Shiva Hotels, which has an operational franchise from Ramada. 

The hotel  created 40 jobs when it opened last year, while another 20 people work there under an out-sourced housekeeping contract.

With an average occupancy rate of 74% so far this year Mr Gallon says the hotel is out-performing the North West Market in terms of this and revenue per available room.

Mr Gallon said: “We are pleased with progress – though we always try to do better – and I’m cautiously optimistic for 2010.

“We have been profitable from day one and we have tried to be creative during this recession by lowering rates before customers asked us to. We also have a price match so that if for example we had an advanced booking at £84 bed and breakfast, and we had cut our rate, the customer would pay the lower price.”

Mr Gallon said there was “no-issue” with the Ramada’s shared location with the £32-per night Etap Hotel.

“You see the model working well in Europe, where you’ll have a budget property located with a 4-star one. Etap is not competing with us and we’re doing a similar thing with a new hotel we’re launching soon in Derby.”