Staff shortages have slowed the recovery of two of London’s finest hotels from the pandemic.
The Savoy Hotel and The Dorchester warn that they are unable to keep up with the growing demand of wealthy tourists visiting London.
In newly filed accounts, The Savoy, a hotel that has hosted such luminaries as Judy Garland, Charlie Chaplin, and others over its 134 year history, stated “ongoing challenges in hiring” had limited the ability of the hotel to “service the strong resurgence”.
The Dorchester echoed these concerns in its most recent financial report, which stated that the labour markets continued to be “challenging”.
In recent years, the hospitality industry in Britain has been seriously affected by a staff shortage.
According to the latest figures released by the Official for National Statistics, the industry has more than 120,000 vacant positions.
According to a survey conducted by the trade association UK Hospitality, 61pc members of their membership are experiencing staff shortages.
Kate Nicholls is the chief executive of UK Hospitality. She said that hoteliers have felt shortages most acutely when it comes to critical roles like chefs, housekeepers, and receptionists.
As part of its efforts to increase employment, the Government has explored ways to reduce high levels of vacancies in this sector.
Hospitality staff has been added to the list of shortage occupations in Britain by hospitality chiefs.
It would be easier for international workers who want to work in UK to get a skilled worker Visa.
Both The Savoy Hotel and The Dorchester Hotel were contacted to provide a comment.
The Dorchester Hotel Limited which owns The Dorchester as well as its sister hotel, 45 Park Lane, saw revenues jump by over 50pc last year to £61.3m. The Savoy’s turnover also increased from £23.4m up to £52.9m. Both had pre-tax losses between £18.5m (the Savoy) and £12m (the Ledger).
Tareq Fontane is a director of The Savoy. He said, “The luxury hospitality industry has shown remarkable resilience over the last few years and, to some extent, has accelerated post-Covid due to the resurgence of demand for travel, experiences and luxury rooms, which are growing faster than the overall market.