This Is Guernsey

By Nick Mann

ANOTHER hotelier is being forced to consider his options because of pressures on the industry. St Margaret’s Lodge Hotel owner Carlo Stefani is in discussions about a £1m. development that would see bed numbers halved and accommodation provided for the elderly and cheap-rental studio flats or apartments.

‘The problem in the hotel is that we never know where we are; either we’re busy or we’re quiet and we’re either overstaffed or understaffed,’ said Mr Stefani.

‘And running costs keep going up and up - water, electricity, gas - the biggest headache we all have is the upkeep. We need a deep pocket full of money to be able to do what we should do.’

He suspected VisitGuernsey would oppose the application once it became formal.

The Peninsula Hotel applied last week for a change of use to either a nursing or care home and St Martin’s Hotel is also looking at other options.

St Margaret’s Lodge currently has 99 beds, but because most rooms were occupied by single people Mr Stefani said the business was doing well to have 50 people staying at any one time.

‘If we could generate 25-plus weeks during which a guest pays the full rate the rest of the year would be smoother, but we don’t get that any more.’

He added that occupancy was on a par with last year, at between 60% and 70%.

‘But to achieve that we had to go down price-wise, particularly because of the tour operators.’

Operators were forcing the hotel to cut its room prices to compete and be put in brochures.

Mr Stefani lost thousands of pounds when Emeraude stopped its service last year because a German walking-tour operator using the hotel paid the shipping company directly.

His ideas for the property were inspired by similar developments he has seen in Italy and the Netherlands.

It would have 30 units for the elderly and 15 studio flats or apartments for the local market.

‘We’re going for residential because we all know people are living longer, so when they are getting into their mature age they need somewhere to stay,’ he said.

‘So the demand is there and we feel it’s doing a service to the community.’

Article posted on 4th August, 2004 - 12.00am