ALMR and BHA proposed merger will create “an immensely powerful voice for the hospitality sector”

Two major hospitality firms have announced plans to merge after months of speculation, creating an “immensely powerful voice” within the industry.

The UK’s two major hospitality trade associations — the Association of Licensed Multiple Retailers (ALMR) and the British Hospitality Association (BHA) — have proposed a merger to create UKHospitality, an industry body which “actively speak out for the UK’s third largest private sector employer”, according to an announcement on BHA’s website.

The aim is to create a powerful lobbying platform which safeguards the interests of hospitality workers at all levels in an industry faced with “unprecedented political and regulatory pressures,” according to proposed Kate Nicholls, the proposed chief executive of UKHospitality.

“This sector is a vital, dynamic economic powerhouse whose importance is clear in our communities, our high streets and our everyday lives,” Nicholls said.

“Faced with unprecedented political and regulatory pressures, now more than ever it requires the strongest and most effective voice to Government.”

Hospitality represents 10% of UK employment, and is the nation’s third-largest private sector generating roughly £130bn in revenue each year, but industry leaders have voiced concern over a future shortfall of workers amidst Brexit talks.

In January, research from job-seekers website CV Library found that average wages in the sector have risen by more than 10% in the past year alone as employers struggle to recruit staff.

The sector is forecast to grow by 4.3% annually, generating 19,000 additional jobs by 2020.

UKHospitality will create a platform which represents the interests of business including pubs, restaurants, nightclubs, hotels, leisure parks, contract caterers, entertainment and visitor attractions.

It will lobby for a dedicated government Minister to represent the industry at home and abroad, as well as a sector deal, brokered with government, to support skills and productivity, said proposed chair Nick Varney.

“Hospitality is a prosperous and vibrant sector with great potential for further growth if the right policies are in place,” he said.

“We are calling for a new ministerial champion and sector deal enabling the hospitality sector to invest in world-class careers and customer experiences.”

So far, the plans have been met with approval from the drinks sector. Mike Benner, chief executive of the Society of Independent Brewers (SIBA) said the merger will create “an immensely powerful voice for the hospitality sector.”

“UK craft beer plays an important role in the hospitality sector,” he said, “and we know retailers that offer it to consumers are often more profitable businesses.”

“Congratulations and best wishes to Kate Nicholls on becoming CEO-Elect of UKHospitality. We look forward to continuing to work with her and the new team.”

Brigid Simmonds, chief executive of the British Beer and Pub Association (BBPA), also welcomed the news.

“As a sector, brewing and pubs contributes £23 billion to the UK economy and we look forward to working closely with the new Association on our shared concerns,” she said.

“Congratulations to Kate Nicholls on her new role. It is thoroughly deserved and a big challenge, but she has all the attributes to make it work.”