Scottish heritage ‘is inspiration behind our latest hotel venture’
DAVID Orr, a veteran of the hotels sector who co-founded City Inn, talks to The Herald about his Resident Hotels venture and its Scottish roots and Islay connections, as he looks forward to a big opening in Edinburgh in a few weeks’ time.
What is your business called? Our specialist hotel operating company is called Resident Hotels
Where is it based?
We are based in St James in central London
What does it produce/do?
We operate specific hotel brands for the owners of hotels as well as design and manage the development of hotels for owners.
To whom does it sell?
The Resident is an upper upscale hotel brand, with guests who visit London, Liverpool and soon Edinburgh. Our midscale brand Sleeperz and Cityroomz has guests in Dundee, Edinburgh, Newcastle and Cardiff.
What is its turnover?
Total turnover across the group is around £35 million.
How many employees?
Total direct employees are around 250 – made up of 34 nationalities currently.
Tell us a bit about the history of the business
The business began in 2006 with the opening of our first hotel. Over the years, it has expanded to operate nine hotels, with a 10th set to open in Edinburgha in a few weeks. The company is familyowned by Mactaggart Family and Partners. I joined in early 2018. Since the launch of The Resident as a brand in 2020, the focus has been on growth, with Sleeperz and Cityroomz (midscale) acquired in 2022.
Why is Scotland an important market for you, and what major developments have there been north of the Border for the business?
Scotland is a key market for us due to our deep-rooted connections. Our ownership is Scottish, with origins in Islay, now spread across the UK, US, and Canada. As the CEO, I was born in Edinburgh and co-founded City Inn and Mint Hotels. Scotland holds significant importance for the business, with [the] existing Sleeperz hotel in Dundee and Cityroomz in Edinburgh, and The Resident Edinburgh set to open in a few weeks. Scotland is, within the UK, a desired international destination that we can contribute to. Our company culture is heavily influenced by our Scottish heritage and philanthropy, aligning with our commitment to fostering team member development within a diverse and inclusive environment.
What attracted you to your current role?
The opportunity to build a new brand and team building on a legacy, but essentially from the ground up, leveraging my experience of growing a business to 2,000 team members across eight hotels with a strong reputation among both guests and the team. The chance to create an operating platform with a specialised approach, expert also in development and brand creation, backed by owners committed to the long term, was incredibly appealing. Most importantly, there was a strong alignment on culture.
What were you doing before? Between the sale of Mint Hotels in 2011 and joining in 2018, I served as CEO for a confidential hotel project with a prestigious international railway company. During this period, I also worked on several projects with Urbanist Hotels, including the unfortunately, and in my opinion wrongly, rejected proposal for The Rosewood in Edinburgh.
What do you least enjoy? Excessive heat!
What do you consider to be the main successes of the business? The main successes of the business lie in its strong culture and dedicated teams, both at HQ and within the hotels, who are all as passionate about their local area and community as they are about their guests. This, combined with our operational approach and business model, has enabled us to achieve industry-leading returns, while also ensuring high guest satisfaction and fostering successful career growth for our team members.
What are your ambitions for the firm?
Our ambition is to expand our footprint as specialist developers and operators of both upper upscale and midscale brands, catering to increasingly institutional-grade ownership.
What are the challenges facing the sector and market, and what could be done to overcome or address these?
The hotel sector faces numerous challenges, including global macroeconomic pressures, geopolitical instability, and concerns around health, wellbeing, and environmental sustainability. These factors can negatively impact business operations. However, there is a positive side: humanity’s resilience, problem-solving abilities, and an enduring desire to explore and appreciate the world’s diversity. If we don’t self-destruct, I believe tourism will continue to grow. By promoting travel that emphasises discovery, learning, and cultural exchange, we can harness the civilising influence of tourism. Encouraging longer stays – from an average of two nights to three or four – could significantly benefit both the industry and travellers’ experiences. The Resident brand is tailored for a more leisurely appreciation of urban environments, making it particularly well-aligned with the policy objectives I envision for the future of tourism.
What single thing would most help?
The Tourism Development Act of 1969 was the last significant legislative effort recognising the crucial role hotels can play in driving economic growth. Despite the sector’s continuous investment and rising visitor numbers, along with dramatic changes in visitor accommodation – such as the rise of Airbnb and the impact of universal reviews – there has been little legislative evolution to support the industry.
What would most help now is a renewed and reformed Tourism Act. This could include measures like rates reform (as seen in France, where hotels are exempt from paying rates), planning reform, and targeted tax breaks to encourage the growth of accommodation and operating businesses. Such initiatives would ensure that accommodation is not only properly regulated but also actively encouraged and invested in, fostering income diversity throughout the UK. It’s disappointing that, since 1969, successive governments have not advanced their thinking in this area, especially when tourism has the unique potential to support growth across every sector of the economy.
What is the most valuable lesson you have learned?
The most valuable lesson I’ve learned is to stand up to bullies and misogynists. In the past, I’ve encountered individuals whose values clashed with my own commitment to sincerity and personal integrity. I’m determined that bullying has no place in our workplace. I’ve worked hard to build a company culture that empowers people to speak out against bullying, ensuring they have the support they need to do so.
What was your best moment?
A key highlight of leading Resident Hotels has been assembling a leadership team that embodies a nurturing and supportive energy. This positive environment is a direct result of our commitment to a diverse and skilled recruitment process, both at our headquarters and across our hotels. I take great pride in the effectiveness of our recruitment strategy and the inclusive culture it has helped build.
What has been your most challenging moment in life or business?
Key challenges, witnessing the sale of the company that I co-founded. We built the company up for 16 years, it was a start up from nothing, it was tough to let go, but the alumni are great friends, and many are doing very great things.
How do you relax?
Best relaxation is cutting the outfield on a fine cricket ground and seeing the perfect stripes when the sun shines, last achieved circa 1992.
Where do you find yourself most at ease?
Most at ease at home or with friends.
If you weren’t in your current role, what job would you most fancy?
A groundsman, mowing lawns to perfection, or on the golf course.
What countries have you most enjoyed travelling to, for business or leisure, and why?
India – loved the culture shock, having to surrender to going with the flow.