"Interest Scheme on Hotel or Resort Business Plan"
Serviced Visitor Accommodation in Lincolnshire Development Strategy & Action Plan FINAL April 2009 DRAFT Locum Consulting 9 Marylebone Lane London W1U 1HL United Kingdom Tel +44 (0)20 7487 1799 Fax +44 (0)20 7487 1797 Info@locumconsulting.com www.locumconsulting.com Date: 12 April 2011 Job: J0895 File: j0895 lincolnshire hotel development strategy 310309.doc All information, analysis and recommendations made for clients by Locum Consulting are made in good faith and represent Locum’s professional judgement on the basis of information obtained from the client and elsewhere during the course of the assignment. However, since the achievement of recommendations, forecasts and valuations depends on factors outside Locum’s control, no statement made by Locum may be deemed in any circumstances to be a representation, undertaking or warranty, and Locum cannot accept any liability should such statements prove to be inaccurate or based on incorrect premises. In particular, and without limiting the generality of the foregoing, any projections, financial and otherwise, in this report are intended only to illustrate particular points of argument and do not constitute forecasts of actual performance. Locum Consulting is the trading name of Locum Destination Consulting Ltd. Registered in England No. 3801514 J0895 Lincolnshire Hotel Development Strategy Contents 1. Introduction 7 2. Summary of Action Plan 8 2.1 Hotel and Pub Excellence Programme 8 2.2 Planning and Economic Development Initiatives 9 2.3 Planning and Economic Development Initiative specifically related to hotels 9 2.4 Timing 11 3. National Trends and the Implications for Lincolnshire 12 3.1 Going up: Staying in Hotels 12 3.2 Going Up: Brands 13 3.3 Going up: City Centre Locations 15 3.4 Going Up: Limited Service “Budget” Hotels 18 3.5 Going up: Self-Catering for Family Holidays 19 3.6 Going Up: Apart-hotels 20 3.7 Going Up: Mixed Use Resorts 22 3.8 Going Up: “Boutique” Hotels 23 3.9 Going Up: Spas 26 3.10 Going Up: Concern for Sustainability 31 3.11 Going Up: Information and Bookings via the Internet 33 3.12 Going Up: High Quality B&Bs, Restaurants with Rooms and Gastro Pubs 34 3.13 Going Down: The Economy 36 3.14 Going Down: Independent 2 and 3 Star Hotels 37 3.15 Going Down: Investment in Country House Hotels 37 4. Overview of Current Provision and Gaps across the County 39 5. Greater Lincoln 46 5.1 Current Provision 46 5.2 Strategic Issues 47 5.3 Development opportunities 48 5.4 Recommended Actions 49 6. North West (West Lindsey) 51 6.1 Current provision 51 6.2 Strategic issues 52 6.3 Development opportunities 53 6.4 Recommended Actions 55 7. Wolds 56 7.1 Current provision 56 7.2 Strategic issues 57 7.3 Development opportunities 61 7.4 Recommended Actions 63 8. The Coast 65 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 3 J0895 Lincolnshire Hotel Development Strategy 8.1 Current provision 65 8.2 Strategic issues 66 8.3 Development opportunities 70 8.4 Recommended Actions 70 9. The South 72 9.1 Current provision 72 9.2 Strategic Issues 74 9.3 Development Opportunities 75 9.4 Recommended Actions 84 Appendices 1. Using this Report 86 2. Major Hotel Operators and their potential for Lincolnshire 88 2.1 A B Hotels 88 2.2 ABode Hotels 88 2.3 Apex 88 2.4 Accor 89 2.5 Arora International Ltd 89 2.6 Aston Hotels Ltd 90 2.7 B D L Hotels Ltd 90 2.8 Ballymore Properties Ltd 90 2.9 Bannatyne Hotels 91 2.10 Beck Conroy Consulting 91 2.11 Bespoke Hotels 91 2.12 Blackstone Group 91 2.13 Butterfly Hotels Ltd 92 2.14 Campanile (UK) Ltd 92 2.15 Carillion Plc 92 2.16 Cedar Court Hotels 92 2.17 Centre Parcs UK Group 93 2.18 Centre Island Hotels 93 2.19 Chardon Management Ltd 93 2.20 City Inn Ltd 94 2.21 Clayton Hotels Ltd 94 2.22 Corinthia Hotels International 94 2.23 Crerar Hotels Ltd 94 2.24 Carlson (Park Plaza brand) 95 2.25 Cendant – Wyndham Hotels 95 2.26 City Inn 95 2.27 Dakota Hotels 96 2.28 Delancey Estates 96 2.29 Doubletree By Hilton 96 2.30 De Vere: Village Hotels 97 2.31 Eclipse Hotels 97 2.32 Express By Holiday Inn 97 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 4 J0895 Lincolnshire Hotel Development Strategy 2.33 Fitzpatrick Hotel Group 98 2.34 Folio Hotels 98 2.35 Four Pillar Hotels 98 2.36 Future Inns Canada 99 2.37 G B Building Solutions Ltd 99 2.38 Grange Hotels Ltd 99 2.39 Guestinvest 99 2.40 Heritage Group 100 2.41 Hilton Hotels. 100 2.42 Intercontinental Hotels 101 2.43 Jarvis Hotels Plc 101 2.44 Jumeirah International 101 2.45 Jurys Doyle 102 2.46 Kennedy Group 102 2.47 Kew Green Hotels Ltd 102 2.48 Legacy Hotels 103 2.49 MacDonald Hotels and Resorts 103 2.50 Malmaison/Hotel du Vin 103 2.51 Marriott International 104 2.52 Marstons Inns & Taverns 104 2.53 Maybourne Group 105 2.54 McAleer & Rushe Group 105 2.55 Menzies Hotels 105 2.56 Millennium Copthorne: 105 2.57 Morethanhotels 106 2.58 Niche Hotels Ltd 106 2.59 Pantin Hotels 106 2.60 Park Inn 106 2.61 Peel Holdings Ltd 107 2.62 Prem Group 107 2.63 Premier Inn 107 2.64 Principal Hayley Hotels 107 2.65 Q Hotels 108 2.66 Radisson Edwardian 108 2.67 Radisson SAS 108 2.68 Real Hotel Company 109 2.69 Regency Hotel Group 109 2.70 Rezidor/Carlson (Radisson SAS) 109 2.71 Shiva Hotels 110 2.72 Sleeperz Hotels Ltd 110 2.73 Somerston Hotels Ltd 110 2.74 Splendid Hotel Group 111 2.75 Starboard Hotels 111 2.76 Starwood Hotels and Resorts 111 2.77 Thistle Hotels 112 2.78 Travelodge 112 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 5 J0895 Lincolnshire Hotel Development Strategy 2.79 Urban Splash 112 2.80 Von Essen Hotels 112 2.81 West Hotels 113 2.82 Willow Street Hotels 113 2.83 Yianis Group 113 3. Space Requirements for Hotels 114 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 6 J0895 Lincolnshire Hotel Development Strategy 1. Introduction Locum Consulting has been commissioned by Lincolnshire Tourism, on behalf of Invest Lincolnshire and the Greater Lincoln Partnership and six district councils in the county, to produce a plan for the development of the serviced accommodation offer in Lincolnshire. Locum has produced three outputs from this work: • Development Strategy and Action Plan (this report) – this is intended to be the main document to be used by those stakeholders who are endeavouring to plan for and encourage hotel development in the county. • Summary Report – this is for the benefit of the wider range of stakeholders with an interest in the sector and what has been recommended. • Market Overview – this is intended as material to be used to provide potential investors with an overview of the market conditions, the current provision and some of the opportunities. This report contains: • An overview of national trends and how they impact on Lincolnshire. This includes case studies of types of hotel that Lincolnshire might seek to promote the development of (there are others in other parts of the report). • An assessment of the current provision across the county and in different parts of it, how it has been changing, and what the key development opportunities seem to be in different parts of the county. • An action plan. • A list of hotel companies that are known to be active in the UK currently. The Summary Report forms the executive summary to this report and has not been repeated here. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 7 J0895 Lincolnshire Hotel Development Strategy 2. Summary of Action Plan This report essentially deals with two issues – the type of development that the county could benefit from and for which there could be demand, and the locations where that opportunity might take place. Sections 3-4 deals concentrates largely on the first of those, and Sections 5-9 deal with the second. They are each cross-related to the other. Each section has suggested actions. This section summarises them. 2.1 Hotel and Pub Excellence Programme The core recommendation for short term intervention by the public sector is to establish a scheme that is aimed at helping independent proprietors of hotels, guest houses and pubs that potentially could have rooms, to achieve excellence. Our suggestion is that it takes the form of a small group of experts, perhaps covering interior design, food, business planning and sustainability, with an allocated number of days that they can spend providing advice. Their time would be provided to operators that are interested and committed to making investment to implement advice (perhaps supported by some grant funding). The vision is that these experts would truly be experts i.e. they would be professionals with a demonstrable track record of excellence and imagination. There could be a competitive process in allocating the expert time (and associated grant funding). Operators could be invited to submit an expression of interest. Those who do could be visited by the panel, who could talk to them, find out their aspirations and give them some guidance. The panel could then select who the potential beneficiaries that they believe have the most potential. The aim in the initial instance could perhaps be to guide intervention in: • Large hotel (+30 rooms) • Small hotel (-30 rooms) • Guest house • Addition of rooms to a pub. • Creation of a small apart-hotel in a rural area or market town. • Caravan park. The aim would be to try in particular to focus on initiatives where potential opportunity has been identified in this report, for example a small apart-hotel in the Fens, a ―quirky caravan park‖ at Ingoldmells, a gastro pub with rooms in Louth, a spa hotel in Woodhall Spa, a smart townhouse style hotel with spa in Stamford. Cumbria Tourism has considerable experience of programmes such as this and we suggest talking to them about their experiences. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 8 J0895 Lincolnshire Hotel Development Strategy 2.2 Planning and Economic Development Initiatives Various destination development initiatives are suggested in this report. Hotel development would be a feature of each of them, but they would have much greater significance. Figure 1: Major Proposed Strategic Work Stamford Engage the community in a visioning exercise aimed at considering how the town can make the most of its ―specialness‖ as, possibly, the finest market town in the country. Consideration of appropriate accommodation development opportunities should be part of this. Ingoldmells Strategy for bringing the key operators together to create a more integrated and well promoted family resort, to be positioned as the primary family resort in the country. A key element of this would be encouraging the development of a proposed resort hotel at Butlins. Skegness Prepare a strategy for how it can be repositioned as an attractive ―town by the sea‖, and what intervention could be made on the seafront to facilitate the transition. Part of that would be consideration of the possibility of a landmark spa hotel and casino. This is a possible signature project which might seek public funding. Develop a planning policy, possibly with intervention via a Housing Trust or other vehicle, for assisting transition of non-viable visitor accommodation into suitable alternatives such as family housing. Louth Engage the community in a ―visioning‖ exercise for what the town should be like, followed by development of a town centre masterplan. There are, obviously, many other places that might benefit from similar ―destination vision‖ type exercises – Horncastle, Boston, Spalding, and even Uphill Lincoln for example. 2.3 Planning and Economic Development Initiative specifically related to hotels In addition, the report proposes a number of specific initiatives to try and nurture development of specific sites. These are likely to need leadership by economic development officers and strategic planning officers of the local authorities concerned. Obviously, there is a limit to what the public sector can do, especially where they do not own the property. Normally it should be about helping with site identification and planning. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 9 J0895 Lincolnshire Hotel Development Strategy Figure 2: Site Development Initiatives Location Action Boston The West Street development offers opportunity for hotel. The most likely candidate is a budget hotel, but a higher range brand or modern style townhouse would be better for the town. Engage with Modus in discussing the options. Fens Actively seek the opportunity to nurture development of a high quality small apart-hotel, with outstanding sustainability credentials, aimed particularly at walking and cycling enthusiasts. Gainsborough Actively seek a site on Trinity Street for a budget hotel. Grantham Seek a full service branded hotel as part of the station approach development. Ingoldmells Work with Butlins to encourage and facilitate the development of a resort hotel there. Ingoldmells Seek a suitable operator for a static caravan park ―makeover‖. Provide help in securing the services of a top notch designer to help make it happen. Uphill Lincoln Investigate whether a development site can be created combining the Judges Lodgings and car park behind it. Earmark the site for hotel development. See this as an optimal compliment to the proposed investments in the public realm on Bailgate and in the display of the Magna Carta in the Castle. Downhill Lincoln Assist and encourage the development of a branded full service hotel in Downhill Lincoln, possibly as part of the proposed extension to the main shopping area. Louth Consider possible use of the town hall for quality functions/restaurant with rooms development Louth Encourage Batemans to investigate possibilities for a food pub with rooms there. Skegness Actively try to find a suitable ―close to prime‖ site for budget hotel development. Sleaford Engage with the owners of the Maltings as to whether development there could include a stronger destination element, including possible hotel. Stamford Engage with the Burghley Estate on the feasibility of the Lady Anne being upgraded to become a top notch townhouse-spa. Stamford Examine the possibility of the Cattle Market and Welland sites including a top of the range hotel and spa. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 10 J0895 Lincolnshire Hotel Development Strategy Location Action Woodhall Spa Engage with the owner of the Woodhall Golf hotel to see whether, possibly with the assistance of some public funding, there might be the possibility of upgrading the hotel and the spa operation to premier league status. Possibly facilitate discussions with possible operating companies that could help achieve this under a management contract. This is a possible signature project which might seek public funding. Woodhall Facilitate familiarisation by potential golf resort developers to Spa/Gainsborough ascertain level of potential interest. 2.4 Timing Clearly, some of these initiatives are more difficult and would take longer to bring off than others, but work on all of them could start immediately. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 11 J0895 Lincolnshire Hotel Development Strategy 3. National Trends and the Implications for Lincolnshire 3.1 Going up: Staying in Hotels The hotel sector has been performing well nationally in recent years. An annual survey by TRI Consulting, which tends to concentrate on larger properties, shows average room occupancy holding steady above 70% and revenue per available room (RevPAR) increasing considerably faster than the retail prices index 1. Figure 3: UK Hotel Market Statistics 2001 2002 2003 2004 2005 2006 2007 Occupancy rate 72% 72% 72% 73% 73% 73% 72% Average Room Rate 70 68 68 74 76 80 78 Room RevPAR £50 £49 £49 £54 £55 £58 £56 Source: TRI Consulting London has been a key engine for growth. RevPAR is at a record £94, more than double the average for the rest of Britain (£44 in England, Scotland and Wales 2). Average room occupancy is above 80%. The luxury sector has been doing particularly well. 3 People have become accustomed to using hotels. A 2006 Mintel survey of 1,000 internet users aged 15+ found that 72% had stayed in a UK hotel in the previous year. In response to this increasing demand, development has been feverish. Lodging Econometrics in their published study identify a total of 83 hotel projects due to open in the UK in 2008 adding a total of around 10,600 rooms to the nation‘s stock. They forecast a further 101 projects with approximately 13,300 rooms in 2009 and 76 projects with a total of close to 15,500 for 2010. TRI‘s Hotel Report 2007 highlighted increasing competition for quality development sites and for existing properties that are suited to re-branding. Many operators have been looking to expand brand networks or introduce into the UK brands that were not previously present. As discussed in more detail below, however, performance has dropped off significantly recently in response to the worsening economic conditions and the situation could be quite different now to what it has been in the recent past. One of the hotels interviewed for this study has, for example, already put refurbishment plans on hold. 1 Occupancy is ultimately of less importance than the average achieved room rate in a market heavily prone to discounting – TRI state that only 15% of bookings paid the full rack rate in 2006. 2 Hotels 2007 UK, TRI Hospitality Consulting 3 PriceWaterhouseCoopers Hospitality Directions Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 12 J0895 Lincolnshire Hotel Development Strategy Implications for Lincolnshire • The underlying increasing propensity of people to use hotels is likely to lead to a resumption of growth in the hotel sector in the longer term. • As in other sectors of the economy, the short term outlook is unclear. It would not be a surprise, however, if there was little development activity for several years. 3.2 Going Up: Brands Most hotel development in the UK in the past three decades has been in the branded sector. In the past seven years branded room supply in the UK has increased by almost 50%. The budget sector has doubled its stock since 2000.4 Although the top 15 brands in the UK only account for 1,700 of 47,000 hotels in the UK 5, they produce a high proportion of its revenue. The hotel stock in cities is now predominantly branded. Figure 4: Top 20 global hotel brands 2007 Rank Brand Group Hotels 2007 Rooms 2007 Average Size 1 Best Western Best Western 4,164 315,401 76 2 Holiday Inn Intercontinental. HG 1,395 260,470 187 3 Marriott Marriott Int 537 190,431 355 4 Comfort Choice 2,439 184,716 76 5 Hilton Hilton Corp. 498 172,605 347 6 Days Inn Wyndham World 1,859 151,438 81 7 Express by Holiday Inn Intercontinental. HG 686 143,582 209 8 Hampton Inn Hilton Corp. 1,392 138,487 99 9 Sheraton Starwood 396 135,859 343 10 Super 8 Motels Wyndham World 2,054 126,175 61 11 Quality Choice 1,128 112,173 99 12 Ramada Worldwide Wyndham World 871 105,986 122 13 Courtyard Marriott Int 733 105,526 144 14 Motel 6 Accor 928 95,628 103 15 Hyatt Hotels Global Hyatt 214 94,224 440 16 Mercure Accor 732 89,624 122 17 Radisson Hotels Carlson Hosp 400 89,365 223 18 Ibis Accor 745 82,546 111 19 Crowne Plaza Intercontinental. HG 275 75,632 275 20 Novotel Accor 397 70,373 177 Source: MGK Consulting Database There is little relationship between the brand that appears over the door of a hotel and its ownership. 4 Marketing Week Magazine, March 2007 5 MINTEL, Hotels, July 2006 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 13 J0895 Lincolnshire Hotel Development Strategy The most prevalent of brands, Best Western, is simply a marketing consortium. It is a means by which independent operators can secure the advantages of a brand, including central reservations. Because it is mainly a marketing device for independent hotels, Best Western is more prevalent in rural and suburbs worldwide, where independents are more prevalent, than in city centres. There are 10 in the Lake District, for example, but only one in each of Manchester and Liverpool. There are five hotels in Lincolnshire operating under the Best Western brand. They total 188 rooms6, about the same size as a single medium sized city hotel. Of more significance is the trend for hotel companies to sell the freeholds of their hotels on a ―sale and manage-back basis‖. In other words, an investment company will own the property, but the hotel company will manage it on a medium term management contract, typically 20-30 years. This has become a big factor in the past few years with several of the largest companies selling off the freeholds of all or many of their properties. For example, Intercontinental Group, the largest UK-based hotel company and until recently the World‘s largest, has spent 7 years disposing of its ‗bricks and mortar‘, its strategy being to become ‗a managed and franchised business‘. 7 Hilton and Marriott have taken the same route, returning significant amounts of cash to their shareholders. Alternatively, hotels are often operated under a franchise agreement. This is where the owner of the hotel manages the property, but does so following the rules and under the brand of the franchisor. Often a franchisee company will have a group of hotels and be of substantial size in its own right (for example BDL). Accor, the global group based in France, illustrates this mix of arrangements. The company now owns only 13% of the 4,065 properties that its brands 8 appear on. 28% are held on a lease, and 24% are managed by franchisees. Accor manages the remaining 1,500 properties under a management agreement.9 The brand is important in two respects. It is important in marketing to consumers, especially given the rising significance of the internet as a means of making bookings, and it is important to investors in giving confidence that a property that they invest in will be managed effectively and well. Many hotel developments now will have three key parties involved – a developer, a financier and an operator. The developer will typically take the lead and will seek an appropriate operating company to operate the hotel. This is what is happening in Lincoln, for example, with the new Holiday Inn Express. Another potential spur to development is the inclusion, from 2007, of hotel investments within REIT (Real Estate Investment Trust) structures. This should in the longer term 6 Bestwestern.co.uk 7 MINTEL, Hotels, July 2006 8 Sofitel, Novotel, Mercure, IBIS, Formule 1 9 MINTEL, Hotels, July 2006 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 14 J0895 Lincolnshire Hotel Development Strategy increase the sector‘s exposure to a wider range of investors, which ultimately should increase demand for suitable investments10. Implications for Lincolnshire • The county is short of branded hotels in all categories. • The best prospect of getting them will be as part of a wider development. A mid market branded full service hotel (such as Jurys Inn), for example, would possibly be a good ambition for the proposed Modus retail orientated development in Lincoln. • There are some instances where there might be an opportunity for an existing hotel to take a brand either under franchise or as under a management contract. Woodhall Spa is one. 3.3 Going up: City Centre Locations All of the larger UK cities have seen a dramatic expansion in their hotel stock in the past decade as they have regenerated. They now have hotel infrastructure that would have been almost inconceivable 10 years ago. The larger regional cities in the UK cities have all experienced a boom in hotel development in the past few years as they have regenerated, and, notwithstanding any short term hiatus, this trends is likely to continue in the medium-long term. The following table presents shows forecast growth in hotel supply until 2010 for the major cities/population centres and for the UK as a whole given currently announced plans. Exhibit 1: Current and forecast hotel supply in UK cities 2007–2010 Total Current Supply Forecast New Openings 2007 2008 2009 2010 Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms London 442 75,398 10 1,523 25 3,470 29 7,260 Birmingham 61 8,787 0 0 7 880 6 1,062 Manchester 52 7,650 5 668 1 176 6 1,392 Liverpool 17 2,110 4 608 6 995 2 266 Edinburgh 63 7,294 4 480 5 561 2 405 Aberdeen 19 2,325 2 242 3 466 3 853 Sheffield 27 2,472 4 481 2 370 2 318 West Yorkshire 33 4,276 1 110 2 446 3 475 Tyne & Wear 24 2,930 2 229 3 378 1 155 Glasgow 59 7,198 2 174 1 128 3 448 United Kingdom 2,487 280,420 83 10,651 101 13,344 76 15,558 Source: Lodging Econometrics/Locum Consulting 2007 10 TRI Hospitality Consulting Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 15 J0895 Lincolnshire Hotel Development Strategy Business tourism has fuelled this rapid expansion in hotel stock in cities. It has been supplemented by increasingly healthy short-break tourism at weekends and by increased weekend business from weddings and functions. TRI‘s statistics for the nature of the business of UK hotels shows why there has been an emphasis on development in cities. Perhaps as much as 50% - when ―rack‖ rate business is included - of rooms sold is generated by corporate business tourism. A further 10% is conference business. In total, therefore, about two thirds of hotel volume in the UK can be accounted for by business tourism. Figure 5: UK room occupancy market mix analysis UK England Corporate 38% 39% Leisure 22% 22% Breaks Rack 15% 15% Conference 10% 11% Tour Groups 9% 8% Other 6% 6% Source: TRI Hospitality Consulting The amount of hotel development that a city or large town attracts is typically a reflection of the ability of the corporate sector to generate business. The nature of the commercial activity is also important. Service sector industries have a higher propensity to generate room night demand than manufacturing industries, which in turn generate significantly more room nights than distributive activities. Southampton, for example, which has a large office sector, has had substantial hotel development, whereas Bolton and Preston, which do not, have only had development in the budget sector. Much of the city development has been in the economy and ―limited service‖ sectors of the market, although increasingly ―full service‖ and ―focused service‖ offerings have been brought to the market. There have also been significant increases in the specialist lodging facilities such as ―boutique hotels‖ and ―extended stay‖ offerings. The location of hotel development in cities has changed. Most UK cities have a cluster of hotels in a suburb just out of town – Hagley Road in Birmingham, Osborne Road in Newcastle, St Pauls Road in Bristol etc. – where, in the 1960s and 1970s, hotel development took place because city centres were seen as dangerous and unwelcoming. The situation is different now. Much city development, especially in the four star sector, has been in the heart of city centres. Smaller towns and cities have found it more difficult to attract hotel investment, especially outside of the budget sector. This has been true of places as diverse as Worcester, Horsham, Stockport, Bradford, Carlisle and Bolton, where Locum has worked recently – all would like full-service hotel developments but have been unable to secure them. This is because they do not have the bread and butter corporate business tourism of the larger cities and, typically, are also not attractive destinations for weekend breaks. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 16 J0895 Lincolnshire Hotel Development Strategy This can change, however. In Derby, a deluge of investment in new hotels in the city centre is taking place after decades of nothing at all. It ranges from a smart boutique townhouse hotel, by the owners of the Lace Market Hotel in Nottingham, to a Hilton. Lincoln fits in the middle. There has clearly been substantial growth in the local economy and demand for hotel accommodation. Occupancy rates are high. Perceived as a ―small city‖, however, the private sector has been slow in responding to the opportunity. They are doing so now with a series of schemes underway and significant investment in existing properties. The hotels are achieving higher occupancy rates than is possible in rural locations because they get corporate business during the week and leisure business at weekends. The increasing attractiveness of the city, and the ―star‖ qualities of Uphill Lincoln, makes it likely that this will continue. A knock on effect for Lincolnshire of this development in the cities is that the expectations of many consumers are now driven by the standards that they experience in the plush, contemporary hotels that they experience there. Once people become accustomed to these standards, it is difficult for them to accept the standards offered by older style, mid market hotels that typify Lincolnshire‘s offer. By contrast to cities, market towns have not typically enjoyed much new development. In fact, there has been a tendency to reduction in hotel stock in these places as old properties – coaching inns, etc – have become obsolete. They are difficult to upgrade to modern standards and in some cases have become more valuable as residential development opportunities. The most likely way forward there is often an inspired individual, perhaps a restaurateur, who has the vision and capability to create a small hotel of quality, as has happened in Southport. Ludlow is possibly the most inspiring place in this respect. Implications for Lincolnshire • Although there is likely to be a slow down in the medium term as a result of the recession, it is probable that the greatest opportunity for growth will be in Lincoln city centre. The new Holiday Inn Express, townhouse hotel on Brayford Pool, extension to and refurbishment of the Holiday Inn, and investment in hotels in Uphill Lincoln, will improve the offer substantially, but there will still be gaps, in particular in the branded mid-market sector. The proposed Modus development might provide an opportunity to fill this. • On a smaller scale, there seems also to be gaps in the market in places like Gainsborough and Grantham where there is a bread and butter corporate market that is not adequately served. Like Lincoln, Grantham would probably most benefit from a full service hotel in the mid market – something akin to Jurys Inn. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 17 J0895 Lincolnshire Hotel Development Strategy 3.4 Going Up: Limited Service “Budget” Hotels The fastest growth over the past decade has been in the so-called ―budget‖ sector. This is reflected in Lincolnshire – almost all new development has been in this sector. It is now 22 years since the arrival of the first budget hotel in the UK, a 20 bedroom Travelodge in Staffordshire. At the end of September 2007, according to the most recent figures from Mintel11, there were in excess 86,000 budget hotel rooms in the UK, compared with just 52,000 in 1992. Despite its expansion, the budget hotel market accounts for only around 11% of the UK hotel stock compared with 35% in France, and there still seems to be ample scope for further development. The largest UK player is Premier Inn, owned by Whitbread. It has a target of 45,000 rooms by 2010, and has pipeline plans of 4,000 rooms for 2008/09 (2007/2008 was 3,400)12. The other dominant operator in the sector is Travelodge, owned by the private equity fund Primera. Their development plans require opening more than 4,000 bedrooms per annum, with a total requirement for a further 70,000 bedrooms by 2020. Other brands include: • IBIS – owned by the French group Accor. There is one in Lincoln. Sometimes developed, as in Manchester, as a ―twin‖ with the 4 star Novotel. • Holiday Inn Express – developed under franchise. One has just been opened on Brayford Pool in Lincoln. • Such is the current size of the budget sector that it has itself become segmented with extreme budget hotels such as Nite Nite, Etap, Campanile and Easy Hotel at one end, brands such as Ibis and Travelodge in the middle, and more products such as Express by Holiday Inn, Hampton Inn, Premier Inn and Ramada Encore at the other end. Matters are further complicated with the emergence of ―Focussed Service‖ brands such as Hilton Garden Inn, Park Inn and Marriott Courtyard, which bridge the gap between premium budget and full service properties. These oft-called ―budget‖ hotels normally compete, in fact, in the mid-market. They certainly compete against B&Bs and other form of traditional low-cost accommodation, but they also compete against the traditional 2–3 star independent hotel. They have a strong offer compared to the latter. They do the basics well – big rooms (they have made single rooms almost obsolete) and good showers. They lack character, but when it comes to a choice between fading ―character‖ and a decent shower, the latter increasingly wins out with the consumer. 11 Mintel Budget Hotels, Leisure Intelligence Sept 2007 12 PwC UK Hotels Forecast Nov 2008 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 18 J0895 Lincolnshire Hotel Development Strategy Through keen pricing, budget hotels have created new, local markets, attracting customers who would previously have opted for driving longer distances or staying with friends or relatives. Whereas full service three and four star business hotels tend to dominate in city centres, most development that has taken place in trunk road locations has tended to be in the budget sector. This is in contrast to previous hotel development cycles in the 1970s and 1980s when motorway locations attracted much of the development in the four star sector. Implications for Lincolnshire • Although most of the hotel development in Lincolnshire in recent years has been in this sector, there is still development opportunity. There is a noticeable lack of coverage in the north and east of the county with apparent opportunities in places like Gainsborough, Skegness, and Louth. There is also a noticeable gap in Stamford. • Possible road junction sites in Lincolnshire might include Caenby Corner in West Lindsey at the intersection of the A15 and A631 or where the A16 bypasses Louth. 3.5 Going up: Self-Catering for Family Holidays One of the most fundamental changes in tourism in the UK in the past few decades has been the growing preference for self-catering rather than serviced accommodation for holidays, especially for longer breaks (i.e. more than 4 days) and for families. In the heyday of the UK based holiday, people would typically stay in a bed and breakfast, guest house, hotel or holiday camp. Now, they are much more likely to prefer a cottage, villa or apartment. This is mainly because people like more independence and to combine cooking for themselves with eating out when they are on holiday. As a generalisation, self-catering is likely to be the accommodation of choice for longer stays, and higher quality serviced accommodation is likely to be the accommodation of choice for short breaks. Although this report is not concerned with self-catering, the consultation has encountered several proposals for self-catering lodges in rural parts of the county. There seems to be considerably more activity in self-catering than in serviced accommodation in rural areas. By contrast, the demand for the hotels and guest houses in Skegness is clearly on the wane. Both phenomena are consequences of the market responding to an underlying trend. Implications for Lincolnshire • Self-catering is likely to continue to be the primary growth area for leisure based staying tourism, even for shorter stay breaks, in coastal and rural areas. Given the Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 19 J0895 Lincolnshire Hotel Development Strategy trend to shorter stay breaks, there may be opportunities for small apart-hotels in rural and seaside locations, as discussed in the next section. 3.6 Going Up: Apart-hotels ―Extended stay hotels‖ are an important emerging trend in regional cities. It has arrived from the United States, where there are 240,000 rooms in the extended stay ―apart-hotel‖ sector. There are offers in budget, mid-range and luxury segments. Figure 6: Room kitchenette at The Suites at 1 King West Hotel in Toronto Example of the compact, but useable kitchenette layout, that extended stay rooms feature. The sector has been emerging in the UK. The Intercontinental Group, for example, has bought its Staybridge Suites to the UK. It caters for longer stays (usually 5+ days), with larger rooms that contain a kitchenette and lounge area. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 20 J0895 Lincolnshire Hotel Development Strategy Figure 7: New Staybridge Suites hotel in Liverpool Other branded products in the country, currently in small numbers, are Ascott and Citadines branded products. There are also a number of quality extended-stay brands looking at the market such as the Adina brand promoted by Australian investors. There are also signs of the sector emerging in rural and seaside areas. As discussed above, UK leisure tourism is increasingly dominated by short breaks, and people increasingly want to use self catering because it gives them more flexibility and freedom, especially given that there is a greater choice of places to eat out now than there was in past times and that has become an increasingly important part of the leisure experience for many people. Apart-hotels, therefore, seem to have a good potential market fit. Figure 8: Case Study – Westcliff, Cornwall Westcliff is an independent, small apart-hotel concept in Looe, Cornwall. The property has 7 apartments that range from 2-4 persons. The units are sold on both weekly and per nightly basis, breakfast not included. The standard is equivalent to a 4 star hotel and it prices accordingly. Weekly Rate Daily Rate Low Season £556 £100 High Season £695 £125 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 21 J0895 Lincolnshire Hotel Development Strategy Implications for Lincolnshire • An apart-hotel would be an excellent addition to the city‘s accommodation offer. There may be an opportunity for a branded version in development Downhill Lincoln. • The concept might provide an interesting development opportunity for independent operators in the market towns and in rural locations such as the Fens. 3.7 Going Up: Mixed Use Resorts Much resort development taking place world wide has a mix of different uses – typically with hotel(s) plus second home residential and fractional ownership at the core. Figure 9: Watermark, Cotswolds Water Park Watermark is a high quality development of premium villas in a range of architectural styles in the Cotswolds Water Park in Gloucestershire. They are sold as second homes and let for holiday lets when the owners are not using them. It includes a range of leisure facilities. In UK, North America and the Mediterranean they normally feature golf course(s) and spas, and are normally within fairly easy reach of urban areas. They rely on a combination of business (in this case, meetings and conferences) and leisure trade. Implications for Lincolnshire • As a rural location, Lincolnshire lends to the concept of a mixed-use resort and associated range of destination attractors. DeVere Belton Woods near Grantham is an example of this with major focus on golf and conferencing. In this light, developing the golf offer of Woodhall Spa or Gainsborough could be a possibility. The main barrier is likely to be distance from major office locations. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 22 J0895 Lincolnshire Hotel Development Strategy 3.8 Going Up: “Boutique” Hotels Growth of the ―boutique‖ sector has been led in the UK by Malmaison and Hotel du Vin, which was taken over by the former. Malmaison has become, in effect, an upscale hotel chain. The concept is broadly, smaller, independent hotels/small groups that have character and offer a premium product (there is an additional case study – the new Vincent Hotel in Southport – in Figure 46). Figure 10: Waterhead Hotel, Ambleside, Cumbria Following Locum’s work in emphasising the need for higher standards in all aspects of the tourism offer in the Lake District, a “second generation” managed family company English Lakes Hotels changed their plans for the refurbishment of one of their properties, the Waterhead Hotel in Ambleside. It has been refurbished with state of the art modernity, while keeping with the rural location. It has been highly successful since opening in 2005. The consultations for this study showed that there has been significant investment by proprietors of hotels in Lincolnshire and a ―Malmaison‖ style of interior design is in vogue. Although meritorious, it often falls just a bit short in terms of quality and is likely to date quite quickly. The best townhouse style hotels have an originality and ―quirkiness‖ in their design that has a certain timelessness about it. Figure 11: Belmont Hotel, Dallas, Texas Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 23 J0895 Lincolnshire Hotel Development Strategy A standard 1950s motor hotel on the outskirts of Dallas that has been refurbished in a very “hip” style. The trick with this is a mix of the sort of quality that the Travel Inns offer (as opposed to the “luxury” that the likes of Malmaison offer) combined with individuality and quirkiness. It is not easy to pull off and many places try without quite getting it right. Hotels like this tend to be highlighted in guide books and to get into publications like the Good Hotel Guide. The Lincoln Hotel in Uphill Lincoln is trying, with some success, to do this kind of thing and deserves particular encouragement. There are many other hotels in the county that would probably benefit from a similar approach. Whereas much of the independent hotel offer in Lincolnshire and elsewhere is in the 2 and 3 star category. Boutiques are aimed at consumers who want four star standards, but with more character and distinctiveness than is offered by chain hotels operating in that sector and in a smaller more personalised property. The Hotel du Vin-type model aims to also fill Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 24 J0895 Lincolnshire Hotel Development Strategy the gap created by the reputation of traditional full service hotels for mediocre food and beverage. A PwC survey found that rooms in the ―lifestyle‖ hotel segment in Europe grew by 6% between 2005 and 2006.13 They identified three 3 tiers: Luxury: e.g. Stein, Firmdale, Eton Town House, Starwood‘s W. Mid-market: e.g. Sorat, Hotel du Vin and Malmaison, Abode. Newer budget segment: e.g. Yotel, Big Sleep, Quest. By its nature, this sector is volatile – new ideas and brands emerge regularly. Figure 12: New Concepts in the Boutique Sector Hilton opened 3 ‗lifestyle hotels‘ at Canary Wharf, London Bridge and Manchester Deansgate in 2007. The Manchester Deansgate Hilton, which forms part of the Beetham Tower, was voted one of the ‗coolest new hotels in the world‘ by Conde Naste Traveller in their Hot List 2007. Marriott International is teaming up with Ian Schrager to develop a new boutique brand of as many as 100 hotels worldwide in what they describe as ‗the marriage of premier lodging with the pioneer of the lifestyle boutique hotel‘14 Each will have 150-200 rooms and be located in gateway cities across the world.15 Le Monde is a new £12 million luxury, boutique hotel located in Edinburgh, Scotland. It has 18 individually-designed suites inspired by different cities. Its rates start at £200 per suite per night. Quest‘s first hotel is the 200 room Hoxton Hotel, which has been described as an ―urban lodge‖. Abode is a brand that intends to be differentiated by its high quality food and drink offering, spa and conferencing facilities. The group has properties in Glasgow, Manchester, Exeter, Canterbury and Chester. Implications for Lincolnshire • Lincoln itself – especially Uphill - and several of the county‘s market towns lend themselves well to the sorts of products offered by this type of property. • It might be worth trying to develop a ―mentoring‖ programme that helps enthusiastic and committed independent hoteliers to make the most of their investment. This would ideally work by providing them with the services of professionals, especially perhaps in interior design and food and beverage, to help them bridge the 10% 13 Price Waterhouse Coopers, Hospitality Directions Europe Edition, September 2006 14 Marriot International News, June 15th 2007 15 Ehotelier.com Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 25 J0895 Lincolnshire Hotel Development Strategy ―inspiration gap‖ that can often translate enthusiastic amateurism to excellence. Locum encountered several hotels in the research for this study that would probably benefit from this sort of help. 3.9 Going Up: Spas The UK spa market is estimated to have expanded by around 7% a year since 2000. 16 Spas are becoming an essential ingredient of a quality resort hotel. They have the added advantage of providing a wet-weather facility. Currently, however, the Condé Nast top 10 Global and European spa list features no entry from the UK. Figure 13: Spa Hotels in St Helier, Jersey St Helier in Jersey is perhaps the best place to go to see what can be done to develop independent style spa hotels. The Royal Yacht and the Club, on the bottom row, are both family owned hotels that have been turned from 2 star into top of the range boutique style hotels, both with large spas in at basement level. The Club also has Jersey’s only Michelin starred restaurant. The most impressive of the spa developments, however, is the Ayush Wellness Spa at the Hotel de France, also independently owned. It has indoor infinity pools, hot and cold plunge pools, hydrotherapy pools and a large deep therapy jet pool which open to landscaped gardens. The only spa treatments on offer are Ayurvedic treatments, with traditional spa therapies adapted to Ayurvedic principles and applied by experts imported from India. It has a 5 bubble rating in the Good Spa Guide. St Helier is abnormal in that it has a major financial 16 The British Spa Federation Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 26 J0895 Lincolnshire Hotel Development Strategy services industry, but the type of offer that has been developed is potentially relevant to certain locations in Lincolnshire such as Woodhall Spa, Uphill Lincoln, Stamford and possibly a destination hotel on the Skegness seafront. There are many variations of spas. Often they are simply enhanced leisure facilities that are attached to hotels, something that is noticeably lacking in Lincolnshire, not least in Lincoln itself and in Stamford. Another category is ―destination spas‖. They are often located in attractive rural areas. With them, the spa is the focal point of the experience. They can take the form of health farms (which concentrate on health assessments, body and facial treatments, complementary therapies, and diet and exercise advice), ―holistic spas‖ (seek offer more broad based psychological and physical guidance and treatments), ―resort spas‖ (which tend to be part of family holiday centres), dental spas (common in the US, some in the UK – combine regular dental treatment with other spa-type treatments), and ―medi-spas‖ (combine cosmetic surgery with day spa experience) The Good Spa guide lists the best spa hotels in the country. It gives 24 properties 5 stars and 32 properties 4 stars. None of them are in Lincolnshire. Most of them are in rural areas. There is an emphasis on key southern locations like the New Forest, the Cotswolds and the M4 Corridor, but there are examples in many locations and, noticeably, they are not confined to classic tourism hotspots (there are none, for example, in the Lake District or the Peak District for example). Figure 14: Spa Hotels in Britain (exc London) listed in the Good Spa Guide ―5 BUBBLE‖ SPA HOTELS ―4 BUBBLE‖ SPA HOTELS Whately Manor, Malmesbury, Wiltshire Barnsley House, Cirencester, Gloucs Spread Eagle Hotel, Midhurst, W Sussex Bath Spa Hotel, Bath Bamford Hay Bedruthen Steps, Mwgan Porth, Cornwall Calcot Spa, Tetbury, Gloucs Boath House, Nairn, Inverness-shire Careys Manor Hotel, Brockenhurst, Hants Bodysgallen Hall & Spa, Conwy, North Wales Chewton Glen, New Milton, Hants Brooklands Retreat, Garstang Dart Marina, Dartmouth, Devon Cameron House, Loch Lomond Eastthorpe Hall, Mirfield, W Yorks Centre Parcs, Longleat, Wilts Forum Spa, Celtic Manor Resort, Newport Charlton House, Shepton Mallet, Somerset Four Seasons, Hook, Hampshire Cowley Manor, Cheltenham, Gloucs Fredrick‘s Hotel Spa, Maidenhead, Berks Cliveden House, Berkshire Gleneagles, Auchterarder, Scotland Danesfield House, Marlow, Bucks Malmaison Hotel, Birmingham Devonshire Arms, Skipton, Yorkshire Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 27 J0895 Lincolnshire Hotel Development Strategy New Park Manor Bath House Spa, Donnington Valley, Newbury, Berks Brockenhurst Rookery Hall Hotel, Nantwich, Cheshire Fistral Spa, The Bay Hotel, Newquay Royal Crescent Hotel, Bath Hartwell House, Aylesbury, Bucks Runnymede Hotel & Spa, Egham Hoar Cross Hall, Yoxall, Staffs Seaham Hall Hotel, Seaham, County Knights Hill Hotel, Kings Lynn, Norfolk Durham Sheraton Grand Hotel, Edinburgh Landsdowne Place, Hove, W Sussex The Grove, Watford St Brides, Saundersfoot, Wales Matfen Hall, Matfen, Tyne & Wear St David‘s Hotel & Spa, Cardiff Norton House, Ingliston, Edinburgh Vineyard, Newbury, Berkshire Old Course Hotel, St Andrews, Scotland Peebles Hotel Hydro, Peebles Pennyhill Park, Bagshot, Surrey Solent Hotel & Spa, Fareham, Hants Spa SPC at Stoke Park Club, Stoke Poges, Bucks Sprowston Manor Marriott, Norwich Thornton Hall, Thornton Hough, Wirral Vale Hotel, Golf & Spa Resort, Hensol, Cardiff Whittlebury Hall, Towcester, Northants As the list illustrates, independent operations, either offering their own signature treatments, based on local products or the most well known and respected branded spa products and treatments, perform equally well alongside established spa and hotel brands. A sea-water (Thalassotherapy) spa is a possibility for a transformational project in Skegness. It could make a good combination with the casino. Figure 15: Examples of Thalassotherapy Spas Stemming from the Greek words thálassa, meaning sea, and therapeía, meaning healing, thalassotherapy is comprised of a series of treatments – baths, showers, and massages, primarily – that all use seawater to stimulate healing and relaxation. France has more thalassotherapy than any other country with over thirty centres. There are also thalassotherapy spas in Spain, Portugal, Belgium, Greece, Cyprus, Morocco and Tunisia. There are currently none in the UK. In France, the government requires that a constant supply of clean, fresh seawater is used daily at every thalassotherapy centre (each spa visitor uses approximately 260 gallons of freshly pumped seawater per day) and water Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 28 J0895 Lincolnshire Hotel Development Strategy quality is tested monthly by the French Ministry of Health. Many French devotees of thalassotherapy complete two cures annually, one during the spring and another in late autumn. Institute Louison Bobet, Brittany Louison Bobet was a famous French cyclist who decided to build his own thalassotherapy institute after discovering the benefits of seawater treatments following a serious cycling accident. Located on the coasts of the Morbihan region, in the centre of south Brittany, the Thalassotherapy Centre of Louison Bobet is on the edge of the Gulf of Morbihan. The Institute is housed inside the Miramar Crouesty, a unique building in the shape of an ocean going linear that is nicknamed the ―The Liner of Health‖. The Miramar Crouesty Hotel is also housed within the building. The Miramar Crouesty has 120 rooms and a number of larger suites. The vision behind the resort is to offer the elegance and sophistication of the early Atlantic Cruise liners. It has two restaurants that specialise in low calorie foods. The 2,500 m² Institute of Thalassotherapy is situated on the first floor of the Hotel and is surrounded by a sea water lake. The Institute uses the salt-water lake as a source for the treatments and seawater pools housed throughout the Thalasso Institute. Centre de Thalassotherapie Thalgo, La Baule, France Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 29 J0895 Lincolnshire Hotel Development Strategy The centre is located over three floors totalling 3,000sqm. Each floor offers different treatments: seawater treatments, dry treatments and relaxation and beauty. The centre‘s facilities include: 3 heated seawater pools: aquagym pool, diagnosis pool and a baby pool, 4 jet shower cubicles, 2 overhead shower cubicles, 8 seaweed bath cubicles, 7 underwater jet cubicles, 2 affusion massage cubicles, 8 seaweed application cubicles. The centre currently employs and employs 50 members of staff. Other facilities include a beauty centre, a relaxation area and a boutique offering Thalgo products. The hotel complex is owned by the Lucien Barrière group, and the treatments offered are provided in conjunction with Thalgo, the group that initially developed treatments utilising sea water to aid health and beauty. Thalgo has a number of similar ventures across France. Inchydoney Island Lodge and Spa, Cork Situated overlooking the Blue Flag Inchydoney Beaches, the Inchydoney Island Lodge and Spa is a modern 4-star resort opened in 1998. It includes Ireland‘s first Thalasso spa, an award-winning Restaurant, 67 ocean facing rooms and extensive conference & banqueting facilities. The Thalasso Centre uses highly sophisticated equipment including multi- functional aeromarine baths, a sea water jet shower, algae application, cryotherapy, lymphatic drainage, pressotherapy, shower massage, marine brumisation, and physiotherapy beds. The Centre is supplied daily with sea-water drawn from the Celtic Sea Additional facilities include a steam room, sauna, fully-equipped gymnasium and an extensive beauty clinic. For after treatment care there is a relaxation room and thalasso refreshment bar. The resort has formed a relationship with the Old Head of Kinsale Links Golf Club which is situated a short drive along the coast. This allows residents at the resort to play the courses at a discounted rate and without an existing member. The lodge has one conference and banqueting suite that caters for up to 400 guests. Activities include horse riding at the Clonakilty Equestrian Centre, sea fishing, cycling, seawater diving, sailing, whale watching and surfing. Lincolnshire does not have a significant spa offer. The only hotel operated spa in the county is at The Golf Hotel in Woodhall Spa. They operate the Aquasante spa that has 7 treatment rooms and uses the natural spa mineral waters of the area. The original spa at Woodhall Spa has collapsed. We understand the reopening of the original spa to be too expensive (c. £2/3 million) and so action should be focused on supporting the current spa Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 30 J0895 Lincolnshire Hotel Development Strategy offer at The Golf Hotel. Professional advice on expanding their offer would be required to leverage the relationship with the neighbouring golf club. Implications for Lincolnshire • Because spa hotels can become destinations in their own right and draw people to areas that they may not normally visit, they are the most likely development opportunity for significant rural hotel development. • Development of the spa offer at Woodhall Spa seems to be the most obvious short terms opportunity. • A high quality spa hotel would be an excellent addition to the Stamford visitor offer, and should perhaps be a development priority there. • A high quality spa would also be an excellent addition to the Lincoln Uphill offer. • A bold transformational project for Skegness might be a landmark spa and casino combination, possibly with a thalassotherapy theme. 3.10 Going Up: Concern for Sustainability ‗Sustainability‘ has become a key issue for hotel operators. Most large hotel companies have Corporate and Social Responsibility initiatives. One of the worlds largest hotel companies, Starwood, for example, has launched "1" Hotel and Residences, supposedly ―the first luxury, eco-friendly global hotel brand‖. The concept is to combine the best of environmentally sustainable architecture and interior design with impeccable service and luxurious comfort. "1" will adhere to green construction and operating principles and commit to environmentally sensitive consumption of natural resources. InterContinental are also developing an ―Innovation Hotel‖ concept which flagships sustainable best practice. In the UK, Whitbread is currently developing a 20 room hotel at Tamworth, under their Premier Inn brand, as an experimental exercise in sustainable design in order to evaluate what works best before roll out across all new schemes. The development is rated at the top of BREEAM‘s ―very good‖ rating. Whitbread estimate build cost to be 25% more per room (they quote £58k per key for a normal hotel) and believe it will save them 80% on utility bills and has 80% less embedded carbon than a standard build hotel. Payback on this extra capital investment is estimated at 15 years (Premier Inn hotels have an estimated life of 25 years).17 17 Sourced from an industry contact from Colliers International Hotels Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 31 J0895 Lincolnshire Hotel Development Strategy Figure 16: Sustainable design features on trial for Premier Inn Ground source heat pump Water based paints Recycled aggregates Recycled carpets Low cement concrete Case goods FSA approved timber sources Timber frame LED lights Timber floor (as opposed to a concrete slab) Grey water recovery for toilet flushing Swedish triple glazed windows (U-Value 0.75) Closed panel system used for partition walls Recycled plastered board with zero waste Overhanging eaves to reduce solar gain Solar panels Source: Premier Inn Interest in sustainability has captured consumer attention, but there is little evidence so far in the UK of hotel demand being led solely on green credentials. To generalise, mainstream consumers seem to agree with sustainable ideas but there is little evidence so far that demonstrates they will pay extra, or sacrifice on quality for it. They have not, however, had much chance to show that they will. Figure 17: Added Value of Sustainable Building · Increased building value · Differentiation · Lower energy bills · Enhanced building visibility · Market demand – especially occupiers and operators · Meeting CSR agenda · Tax & Regulatory Incentives · Attraction & Retention of Employees · Future-proofed building · Faster planning approval Many hotels make some effort to promote their eco-credentials, although not in a particularly credible manner. Many pick up on reduced energy consumption, reduced water use, recycling, using locally sourced materials and are making the best of their situation. We are not aware, however, of any open, new hotel development that is setting a high benchmark for sustainable development, and the opportunity to do is still available. In other property sectors, developers have been ahead of the curve with exemplary low carbon developments such as BedZED, Kingsmead School, Innovate in Nottingham, The National Trust HQ in Swindon and the EPIC centre in Lincoln. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 32 J0895 Lincolnshire Hotel Development Strategy Figure 18: Case Study: Best Western Hotel Victoria, Freiburg, Germany The Best Western Hotel Victoria in Freiburg, Germany, is considered a zero-carbon hotel. This means the operation of the hotel has no net consumption of carbon and therefore doesn‘t contribute directly to climate change. The hotel has no reliance on fossil fuels to meet its energy demand. The hotel has a mix of on-site renewable energy technology including solar water heating and a wood pellet boiler. The hotel‘s solar power system provides 25% of the electricity needs and the reminder is met from a local hydroelectric plant and purchasing green energy from the grid. However, Hotel Victoria is an old building with embedded carbon use in its construction as well as inefficiencies in energy use inherent in the old design. Better results could be achieved in a new construction. Implications for Lincolnshire • All new developments will have to be more environmentally aware and consider sustainability in both their design and operations. • Locum is not aware of any exemplar, low carbon best practice hotel buildings in the UK at present. This could represent an opportunity for Lincolnshire to create a niche. • The EPIC building at The Lincolnshire Showground is a new exemplar, low carbon building. The Showground is marketing a site on their land which would be an opportunity to build upon the sustainable credentials of the EPIC centre and generate a niche for Lincolnshire. Realistically, however, a contribution of public funding is likely to be necessary to make it viable. 3.11 Going Up: Information and Bookings via the Internet The Internet has rapidly become a primary factor in the marketing of hotel rooms. In January 2006, Internet penetration in the AB socio-economic grouping reached 80% and there is now high penetration among all age groups 18. As an indication of its significance, Travelodge say that nearly 80% of its room sales are booked on line19, although it is still much lower than that for most hotels. The internet has changed the marketing environment for hotels. They can now sell-off empty rooms close to arrival time on websites such as lastminute.com. Astute companies like City Inn have become adept at Easyjet style ―yield-management‖ i.e. varying the price of rooms according to how much demand they anticipate. Hotels that offer high standards benefit from ‗review‘ sites such as Tripadvisor – this kind of customer appraisal is, arguably, supplanting official grading systems as a means of judging quality. Consumers are now able to use video streaming to get a better idea of hotel facilities. 18 MINTEL, Hotels, July 2006 19 MINTEL, Hotels, July 2006 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 33 J0895 Lincolnshire Hotel Development Strategy Skill in using the internet is likely to become increasingly important in marketing. The Charlotte House in Lincoln, for example, focuses most of its marketing budget on Google Adwords and says that a large proportion of its sales are a result of that. Implications for Lincolnshire • Lincolnshire has few hotels linked into the global GDS systems that provide their availability to the booking masses. Those that fall behind in technological advances will not have sufficient access to this market and will suffer declining bookings. • Marketing to individuals is extremely difficult for individual properties and consortia and / or collective marketing arrangements will be more effective. There are some independently owned hotels in the county that might be better off under a management contract or franchise in order to achieve this. • Help and advice on how to best use the internet to maximise bookings and to implement yield management could help to improve performance of current hotel stock. 3.12 Going Up: High Quality B&Bs, Restaurants with Rooms and Gastro Pubs In the British Isles, bed and breakfast accommodation has traditionally been seen as a low cost alternative. That is not the case in countries like Australia and the United States, where bed and breakfast establishments are often of exceptional quality and charge prices that are higher than hotels. There is evidence that the same kind of thing is happening in the UK. In Scotland, the Scotland‘s Best B&Bs Consortium has been exceptionally successful. Established by a landlady near Inverness who was continually being asked to recommend B&Bs of ―the same type‖ as hers, she established a consortium that now has almost 100 members all over Scotland. In towns and rural areas, high quality restaurants with rooms and gastro pubs can be a destination in their own right. In a 2006 Mintel survey, 62% of respondents ranked a good quality restaurant as an ‗essential‘ or ‗important‘ part of a hotel stay. Some parts of the country have created grant schemes to encourage this. The Tourism Connect programme in Cumbria is an example. The Good Hotel Guide gives an indication of the number of independent establishments of exceptional quality. It is entirely independent and entries result from nomination by customers. The 2009 Guide includes 800 independent hotels and B&Bs across the UK, with Lincolnshire ranking 32nd out of 47 English counties for total entries. Lincolnshire has one full entry (The George at Stamford) and three short listed entries: The Castle Hotel (Lincoln), The Old Bakery (Lincoln) and The Angel & Royal (Grantham). Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 34 J0895 Lincolnshire Hotel Development Strategy Figure 19: Good Hotel Guide 2009 Entries by English County Rank Area Full Entries Short listed Total Rank Area Full Entries Short listed Total 1 Devon 39 11 50 25 Isle of Wight 5 2 7 2 London 17 27 44 26 Cambridgeshire 3 4 7 3 Cumbria 31 6 37 27 Wawickshire 2 5 7 4 Cornwall 27 10 37 28 Cheshire 4 2 6 5 Somerset 24 10 34 29 Co. Durham 4 1 5 6 N Yorkshire 23 9 32 30 Tyne & Wear 3 2 5 7 E Sussex 13 11 24 31 Berkshire 2 3 5 8 Norfolk 14 7 21 32 Lincolnshire 1 3 4 9 Gloucestershire 14 4 18 33 Isle of Scilly 4 0 4 10 Dorset 13 5 18 34 W Midlands 3 1 4 11 W Sussex 13 5 18 35 Nottinghamshire 3 0 3 12 Derbyshire 10 7 17 36 Leicestershire 2 0 2 13 Hampshire 10 7 17 37 Northamptonshire 2 0 2 14 Kent 6 9 15 38 Merseyside 1 1 2 15 Suffolk 9 5 14 39 Buckinghamshire 1 1 2 16 Wiltshire 9 5 14 40 E Yorkshire 1 1 2 17 Oxfordshire 9 4 13 41 Hertfordshire 1 1 2 18 Essex 8 3 11 42 Surrey 1 1 2 19 Shropshire 8 3 11 43 Staffordshire 0 2 2 20 W Yorkshire 5 5 10 44 Isle of Man 1 0 1 21 Herefordshire 6 3 9 45 Rutland 1 0 1 22 Northumberland 5 3 8 46 Mid Sussex 0 1 1 23 Lancashire 1 7 8 47 Bedfordshire 0 1 1 24 Worcestershire 6 1 7 The Good Pub Guide 2009 has 16 entries for pubs in Lincolnshire, only two of which offer accommodation. These include The George at Stamford and Welby Arms, Allington (near Grantham). Alastair Sawday is another independent accommodation guide book publisher. The Sawday 2008 Pubs and Inns guide includes 5 entries for Lincolnshire, three of which are pubs with rooms located near Grantham. Figure 20: Alastair Sawday Pubs & Inns entries for Lincolnshire (2008) Name Location No. of Rooms Chequers Inn Woolsthorpe by Belvoir, Grantham 4 Houblon Inn Oasby, Grantham 4 Brownlow Arms Hough on the Hill, Grantham 4 Wig & Mitre Lincoln 0 The Blue Bell Inn Belchford, Horncastle 0 Pubs have come under considerable financial pressure and the sector is shrinking. Accommodation, alongside food sales, is an obvious means of generating additional revenue. There are practical difficulties to be overcome, however. Complying with fire and other health and safety regulations is often difficult and expensive. Many pubs are tenanted. The tenants buy the fixtures and fittings. Adding rooms might be unaffordable for them. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 35 J0895 Lincolnshire Hotel Development Strategy Implications for Lincolnshire • The performance of the county in terms of small hotels and food pubs of quality is disappointing. There are, in particular, several attractive market towns where the visitor offer, for locals and tourists alike, would be considerably enhanced if there was such an offer. A public sector supported scheme that aimed to help a relatively small number of units achieve such status would be worth considering. The focus should probably be on town centres in places like Louth and Horncastle. • A core part of the ―mentoring‖ programme suggested in this report should be assisting pub owners and tenants with planning how to add rooms to their offer. 3.13 Going Down: The Economy Having commented on the general positive trends of the last 10-15 years, evidence is beginning to emerge that indicates that the global economic downturn is starting to impact hotel demand and performance in the UK. PriceWaterhouseCoopers (PwC) report the summer of 2008 as a turning point with average occupancy falling by 4.1 percentage points in September alone across the UK20. PwC predict the end of year average occupancy for 2008 will be 1.7 percentage points lower than 2007. Figure 21: UK trading Jan-Sept 2008 (% change from 2007) UK London Provinces Occupancy -1.5 -0.1 -2.1 ARR 3.6 6 1.5 RevPAR 2 5.9 -0.6 Source: STR Global Nov 2008 STR Global are forecasting that Occupancy, Average Room Rates and Revenue per room in the UK will all decrease from 2008 levels in 2009. Figure 22: Forecast baseline scenario % growth on previous year 2008 2009 UK London Provinces UK London Provinces Occupancy -2.3 -1.9 -2.4 -2.6 -11.8 0.3 ARR 2.2 5.4 0.7 -1.8 -0.2 -2.5 RevPAR -0.1 3.4 -1.7 -4.3 -11.9 -2.2 Source: STR Global Nov 2008 It is a time of abnormal uncertainty and it is unclear what the impact will be. It remains to be seen how much the economic downturn will put a brake on the heated pace of development of recent years, but past experience is not encouraging. Previous bursts of 20 UK Hotels Forecast PWC Nov 2008 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 36 J0895 Lincolnshire Hotel Development Strategy hotel development in the early 1970s and 1980s were, in each case, followed by a long period of little development activity once the bubble burst. Implications for Lincolnshire • The economic downturn will affect hotel operating profits and this will lead to cutbacks in essential refurbishments and capital improvements to the existing stock. It will also put a break on developer interest. This is likely to prove the biggest barrier to new hotel development in Lincolnshire in the short to mid-term. • Budget hotel development is most likely to prove the exception as Premier Inn and Travelodge continue to progress expansion plans. 3.14 Going Down: Independent 2 and 3 Star Hotels Independent operated 2 and 3 star hotels have become increasingly rare in cities. They only continue to be a major presence in rural areas and small towns where there is not enough commercial trade to support investment by the chains. In places like Skegness, there is still demand, especially from older people, for independent hotels in older properties that compete largely on price. It is not likely, however, that new generations of empty nesters will have the same tastes. The evident weakness of demand in Skegness is indicative of how this market is in long term decline. Implications for Lincolnshire • The consultations for this work has shown that many of the independent operators in the rural and market town parts of the county have upgraded and are competing on quality and distinctiveness as opposed to price. This is the best strategy. Several of them could perhaps use assistance with their upgrading, especially with interior design, to help them make the most of the investment and get their offer ―spot on‖. • There is a concentration of stock on the coast, largely in Skegness, that probably does not have a viable future as visitor accommodation. A sensible financial return could not be secured from upgrading it and, in most cases, it would not be a sensible use of public funds to sustain it. This seems to require a managed approach to conversion of that stock back to quality residential accommodation. That itself may require public sector funding intervention. 3.15 Going Down: Investment in Country House Hotels There was a fashion in the 1980s for converting historic rural properties into smart hotels, typically with highly rated restaurants. It proved to be difficult to make money from them, however, especially given the high cost of restoring and converting historic properties. There has since, as a result, been little new country house hotel development. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 37 J0895 Lincolnshire Hotel Development Strategy As discussed above, however, there is a niche within rural hotels for spa hotels and it is possible that there may be opportunities for this type of development in certain locations in the county. Implications for Lincolnshire There are various large historic buildings in the county that could, theoretically, make good country house style hotels. It is always possible that someone with passion and deep pockets might want to try converting one to a hotel, but there it will probably be difficult to generate that type of activity. Hotel use is not generally a viable use for such buildings. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 38 J0895 Lincolnshire Hotel Development Strategy 4. Overview of Current Provision and Gaps across the County There are about 60 hotels with about 2,500 rooms across the county (excluding Butlins). As outlined in the previous section, there are many different types of offer in the serviced accommodation sector and ways of categorising it. As a start, there is a distinct difference between the branded sector and the independent sector. Within the former, different brands have subtly different positioning and are aimed at different market segments. Within the latter, there are variations of standard that are partly encapsulated within the official quality assessment scheme, but there are also subtle gradations that are more difficult to pick up – some hotels, for example, achieve a ―coolness‖ that is difficult to quantify. As Figure 233 shows, in terms of the number of rooms, the offer in Lincolnshire is still orientated to the independent sector, but about 45% rooms are now operated under brands (including Best Western). Almost all of the development in the past decade has been in the branded sector, so this balance will be quite different to what it would have been 10 years ago. The change is the result of the development of budget hotels on the outskirts of Lincoln and in the south west of the county, serving a combination of corporate and leisure trade. Elsewhere, particularly in the east, where corporate business is less, independent hotels predominate. Figure 23: Lincolnshire Hotel Stock Properties Rooms Rooms per Number % of total Number % of total property Independent 3 star 26 41% 877 35% 34 Budget 11 19% 593 24% 54 Independent 2 star 17 26% 500 20% 29 Best Western 5 9% 188 8% 38 Branded 3 star 2 3% 186 8% 93 Branded 4 star 1 2% 136 5% 136 Independent 4 star 0 0% 0 0% 62 100% 2480 100% 40 Both the branded and non-branded sectors are somewhat one-dimensional in nature. This is particularly true of the branded sector, where two brands represent most stock, but there is a certain sameness about much of the offer in the independent sector also. There is a notable gap at the top of the market, with only one four star hotel. This is perhaps a bit misleading, however, in that several independent hotels in the county which are officially 3 star are really operating at four star level. The consultations with hotels for this study found that many independent hotels have been investing in upgrading their facilities, typically with high aspirations. Some, like the Lincoln Hotel, are achieving a distinctive style. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 39 Figure 24: Hotels in Lincolnshire J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Locum Consulting J0895 Lincolnshire Hotel Development Strategy Hotel Location Rooms Conference Stars Hotel Location Rooms Conference Stars Facilities Facilities 1 De Vere Belton Woods Grantham 136 245 4 33 Angel & Royal Grantham 29 3 2 Holiday Inn Express Lincoln Centre 118 - - 34 New England Hotel Boston 28 2 3 The Olde Barn Hotel Grantham 112 300 3 35 The Crown Hotel Stamford 26 20 3 4 Holiday Inn Lincoln Lincoln Centre 97 30 3 36 Brachenborough Hotel Louth 24 34 3 5 Premier Inn Grantham Grantham 92 - 37 The Queens Skegness 24 2 6 Ramada Grantham Grantham 89 200 2 38 Boston West Hotel Boston 24 100 3 7 Travelodge Lincoln Outskirts 86 - 39 White Hart Boston 24 80 3 8 Ibis Lincoln Lincoln Outskirts 86 - 40 Hemswell Court Hemswell Cliff 23 200 3 9 Best Western Bentley Hotel Lincoln Outskirts 80 3 41 The Woodhall Spa Hotel Woodhall Spa 23 2 10 Premier Inn Boston 73 - 42 Norton Lodge Hotel Lincoln Outskirts 22 150 2 11 The Lincoln Hotel Lincoln Uphill 72 110 3 43 Best Western Vine Hotel Skegness 22 105 3 12 The Royal Skegness 72 100 3 44 Best Western Kings Hotel Grantham 21 20 3 13 Southview Park Hotel Skegness 62 180 4 45 Castle Hotel Lincoln Uphill 20 2 14 Petwood Hotel Woodhall Spa 53 200 3 46 Garden House Stamford 20 3 15 White Hart Hotel Lincoln Uphill 50 150 3 47 Halfmoon Hotel Alford 17 2 16 Branston Hall & Spa Lincoln Outskirts 50 200 3 48 Lincolnshire Oak Sleaford 17 150 3 17 The Golf Hotel & Aquasante Spa Woodhall Spa 50 120 3 49 Beaumont Hotel Louth 16 150 2 18 The Savoy Hotel Skegness 48 2 50 Hillcrest Hotel Lincoln Centre 15 2 19 The George at Stamford Stamford 47 50 3 51 The Sun Hotel Gainsborough 15 2 20 Travelodge Spalding Spalding 43 - 52 Cley Hall Hotel Spalding 15 3 21 Premier Inn Lincoln Outskirts 41 - 53 Red Lion Hotel Spalding 15 2 22 Travelodge Long Sutton Long Sutton 40 - 54 Woodlands Hotel Spalding 15 20 3 23 Travelodge Sleaford Sleaford 40 - 55 Charlotte House* Lincoln Uphill 14 100 - 24 North Shore Hotel Skegness 36 105 3 56 Bailhouse* Lincoln Uphill 14 - 25 Best Western Kenwick Park Hotel Louth 34 220 3 57 Tower Hotel Lincoln Uphill 14 2 26 Travelodge South Witham Grantham 32 - 58 White Hart Hotel Gainsborough 14 2 27 Best Western Admiral Rodney Horncastle 31 140 3 59 Palm Court Hotel Skegness 14 2 28 Grosvenor House Skegness 30 2 60 Washingborough Hall Lincoln Outskirts 12 50 3 29 Travelodge A1 Grantham 30 - 61 Priory Louth 12 3 30 Travelodge Colsterworth Grantham 30 - 62 Rufford Hotel Skegness 12 2 31 The Lady Anne's Hotel Stamford 30 - 63 Hickman Hill Hotel Gainsborough 9 9 2 Page 40 32 The Crown Hotel Skegness 29 2 64 Advocate Market Rasen 7 2 * We recognise these establishments are categorised as Guest Accommodation but include them as relevant comparators Figure 25: Travelodge and Premier Travel Inn hotels in and around Lincolnshire Doncaster Scunthorpe Premier Inn · 2 x Premier Inn · 1 x Premier Inn · Grimsby J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Locum Consulting J0895 Lincolnshire Hotel Development Strategy · 2 x Travelodge · 1 x Travelodge · 40 rooms Travelodge · Retford · Blythe · Worksop Travelodge · Thorpe on the Hill · 88 rooms Premier Inn · Lincoln · 41 rooms Premier Inn · Newark-on-Trent · 54 rooms Travelodge · Sleaford · 40 rooms Nottingham Premier Inn · 7 x Premier Inn · Boston · 4 x Travelodge · 73 rooms Travelodge · Spalding · 43 rooms Leicester Premier Inn · 4 x Premier Inn · Kings Lynn · 3 x Travelodge · 101 rooms Travelodge Premier Inn Travelodge Travelodge Peterborough Travelodge · Grantham A1 · Grantham · Colsterworth · South Witham · 4 x Premier Inn · Long Sutton · 30 rooms · 92 rooms · 30 rooms · 32 rooms · 3 x Travelodge · 40 rooms Page 41 J0895 Lincolnshire Hotel Development Strategy Locum has developed a model for categorising different types of destination experience. It is called the Place Making Mosaic. Experiences on the left hand side of the model are dominated by corporations – the property tends to be in the ownership of large companies or finance institutions and the businesses are dominated by branded multiples. Experiences on the right hand side of the model are independent orientated – the property tends to be in the ownership of small, local companies, and the operations tend to be managed independently. Experiences at the top side of the model compete largely on quality and those at the bottom side of the model compete largely on price. Figure 26 gives examples of where hotel experiences fit on this model. Figure 26: Place Making Mosaic Plotting the county‘s hotel stock on the mosaic shows that there is very little stock in the top half of the mosaic. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 42 J0895 Lincolnshire Hotel Development Strategy Figure 27: Lincolnshire Hotel Stock plotted on Place Making Mosaic Branded 4 star 136 rooms Independent Branded 3 star Best Western 188 rooms 3 star 186 rooms 800 rooms Budget Hotels 593 rooms Independent 2 star 500 rooms Lincolnshire Tourism recently commissioned a research study to assess the character of visitors to Lincolnshire. It showed that there is a clear bias to older markets that like a functional, low price product. This is entirely consistent with the nature of the accommodation offer which is orientated towards people of that disposition. This is to some extent market driven – providers are responding instinctively to the type of people who are interested in coming to Lincolnshire. The county is almost entirely lacking in accommodation product for those of a more ―cosmopolitan‖ disposition. These are the people that are the big spenders and like to take short breaks. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 43 J0895 Lincolnshire Hotel Development Strategy Figure 28: Gaps in the Lincolnshire serviced accommodation offer The following seem to be main gaps that the public sector could play a role in helping to fill through planning policy, site identification and assembly, business support schemes, and gap funding. “Quirky” (i.e. independent hotels that are a bit different from the norm) Although there has been much investment by independent hotel owners, there are only a few instances where it has produced hotels of distinction that are likely to be highlighted by the guide books. Locum encountered several hotels where some professional assistance, particularly in interior design, might help. Specific opportunities for an offer in this sector include: • A ―trendy‖ static caravan holiday park. • An ―eco‖ hotel at the Lincolnshire Showgrounds. • Rural apart-hotels in market towns, the Fens and the Wolds. Independent 4 star The opportunities in this sector are more likely to relate to upgrades of existing properties and, again, professional assistance might be useful. Most, if not all, of the larger independent hotels should probably be of four star standard. Specific opportunities for an offer in this sector include: • A restaurant and functions centre with rooms in Louth. • Upgrade of the Woodhall Spa hotel. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 44 J0895 Lincolnshire Hotel Development Strategy Premium Brands/Landmark Independent Specific opportunities for an offer in this sector include: • The combination of the Judges Lodgings and the car park behind it in Lincoln for a niche brand like Hotel du Vin. • The same for Stamford. • A golf resort hotel on the Ping owned course in Gainsborough or in Woodhall Spa. • A management contract or franchise for an existing hotel in Woodhall Spa. • A ―landmark‖ hotel on the seafront at Skegness. Mid Market Brands It seems likely that, in the medium term, Lincoln, especially, could benefit from at least one brand that is at a higher level than the budget hotels. There are also possible opportunities for this in Grantham. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 45 J0895 Lincolnshire Hotel Development Strategy 5. Greater Lincoln 5.1 Current Provision There are four main clusters of hotels in and around Lincoln: overlooking Brayford Pool in the city centre, in the cathedral quarter area of Lincoln Uphill, the south east satellite villages on the major access roads and the same in the south west, North Hykeam area. Seven hotels have more than 50 rooms but none are currently above ―upper three star‖ quality. There is strong demand from both the corporate market on week days and the tourism market at the weekend. The larger hotels are performing well with high occupancy rates between 70-80% and an average room rate from £100-£120. Figure 29: Hotel Supply – Greater Lincoln No. of Conference Star Hotel Location Rooms Capacity Rating City Centre Holiday Inn Express Lincoln Centre 118 0 3 Holiday Inn Lincoln Lincoln Centre 97 30 3 Hillcrest Hotel Lincoln Centre 15 0 3 The Lincoln Hotel Lincoln Uphill 72 110 3 White Hart Hotel Lincoln Uphill 50 150 3 The Castle Hotel Lincoln Uphill 20 0 2 The Tower Hotel Lincoln Uphill 14 0 2 Charlotte House* Lincoln Uphill 14 100 - Bailhouse* Lincoln Uphill 14 0 - Outskirts Branston Hall SE Satelite 50 200 3 Premier Inn SE Satelite 41 0 Washingborough Hall Hotel SE Satelite 12 50 3 Hotel Ibis Lincoln SW Satelite 86 0 2 Travelodge Thorpe on the Hill SW Satelite 86 0 2 Best Western Bentley Hotel SW Satelite 80 350 3 Norton Lodge Hotel SW Satelite 22 150 2 Total 791 1,140 Source: Visit Lincolnshire / Locum Consulting Research * We recognise these establishments are categorised as Guest Accommodation but include them as relevant comparators About 150 additional hotel rooms are planned for the Brayford Pool area. The Holiday Inn plans a 50 room extension, and independent company Manor Crest have planning Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 46 J0895 Lincolnshire Hotel Development Strategy permission for a 100 room 4-star townhouse hotel with function facilities, adjacent to the Holiday Inn. The 118 room Holiday Inn Express opened in December 2008. In Uphill Lincoln, the Bailhouse is planning a 20 room extension. It has a number of apartment style units operated as a hotel. Both the White Hart and the Lincoln Hotel are undergoing refurbishment, with the White Hart also planning an extension. Figure 30: Current Hotel Offer and Gaps in Central Lincoln 5.2 Strategic Issues The uphill section of Lincoln has developed a truly outstanding tourism offer. It has become an excellent example of a ―Cosmopolitan‖ zone, one in which a historic built realm is mixed with a retail and restaurant offer that is distinctive and quality orientated. Further planned investments in improving the public realm on Bailgate and making more of the Castle will make a further step change improvement to the offer. With a cathedral that is one of the finest in Europe, it is an offer that truly ranks as one of the best of its kind in the country. Locum‘s view is that the quality of the Uphill experience should be more widely known and a good start point for this would be sharper branding. Uphill Lincoln seems to be the best brand to use in conveying to the rest of the world that there is something special here. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 47 J0895 Lincolnshire Hotel Development Strategy The hotel offer in the Uphill section is edging towards being a feature of the area. The Lincoln Hotel is being upgraded in a ―funky‖ style that is the kind of thing that could get it into the Good Hotel Guide and could generate media coverage. The White Hart has upgraded its public areas and has been working on the rooms, and Bailhouse has plans to add about 20 rooms. 5.3 Development opportunities Branded Townhouse Hotel The combination of the Judges Lodgings and the car park to its rear seems to be a prime opportunity for a hotel. The Judges Lodgings is a County Council owned property situated on Castle Square on Lincoln Hill. The best use would probably be a top of the range boutique brand such as Hotel du Vin, preferably with a spa. This would become a destination in its own right and would immediately add catchet to Uphill Lincoln. It is a truly prime location and worth concerted effort to try and engineer a deal. Figure 31: Judges Lodgings The building has a Georgian façade and 1940‘s extension to the rear. The building used to be accommodation for the judges using the neighbouring Law Courts but is now used by the council as an events venue for formal functions, dinners and as a training space. As you enter the building from the Georgian front door, there are two large reception rooms to the left and right. Above them are two large bedrooms. The extension part of the building has about 10 small bedrooms of low quality and standard. The property suffers from subsidence with the extension sinking and pulling the Georgian façade backwards, which has led to involvement from English Heritage. Behind the property is the car park of the White Hart Hotel. It is believed that the hotel has development plans for the land and development details of a hotel extension are Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 48 J0895 Lincolnshire Hotel Development Strategy emerging at present. It would seem to be a pity if the car park was developed without including the Judges Lodgings. If the council were to sell in the future, they would retain a strip of land running along the Castle side of the Lodgings to give the public through access. Historically, there was a lane here called St. Paul‘s Lane. The property is in an excellent location, situated between the Castle and Cathedral. The Georgian façade gives character and charm whilst there is potential for a modern extension development to the rear of perhaps 50 rooms. Mid Market Branded Full Service Hotel Even with the proposed extension to the Holiday Inn and the opening of the Holiday Inn Express, there seems to be a gap in the branded sector, especially in the mid-range full service niche, of which Jury‘s Inn is a classic example (the new Ramada Plaza in Southport, shown in Figure 47, is an example of this type of hotel and the way in which it is likely to be delivered). The proposed Modus Lindongate development scheme would seem to be a good opportunity to address this. An apart-hotel such as Staybridge would also be a good option, although considerably more difficult to achieve. “Eco-hotel” at The Lincolnshire Showground Lincolnshire Showground is in West Lindsey but has been included in the Greater Lincoln area in this report since it is only 2 miles north of the city centre (on the A15). Lincolnshire Showground is a 270 acre multi purpose event facility that is home to the annual Lincolnshire Show, a national scale agricultural show that attracts 60,000 visitors each year. Total visitor numbers for the Showground are estimated at around 100,000 per year. Management at the Showground have diversified their commercial offer to include year round events and programming as part of the new £7 million Lincolnshire Events Centre (the EPIC Centre). EPIC is a multi purpose events venue, designed as an exemplary low carbon, environmentally innovative building. Adding an equivalent hotel would create a unique offer in the UK. It is likely to require a subsidy, however, if it is to be deliverable. 5.4 Recommended Actions • Work with the owners of the White Hart Car Park and the Judges Lodgings to see if a single site can be achieved and then marketed to a company such as Hotel du Vin. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 49 J0895 Lincolnshire Hotel Development Strategy • Encourage development of a mid-market full service hotel, as opposed to a budget hotel, in the city centre as part of the Modus development. • Work with Lincolnshire Showground to help deliver the eco-hotel there. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 50 J0895 Lincolnshire Hotel Development Strategy 6. North West (West Lindsey) 6.1 Current provision Hotel provision in the West Lindsey district in the North West is more or less limited to the 9 room Hickman Hill Hotel, the 15 room Sun Hotel and the 14 room White Hart hotel, all in Gainsborough. Hemswell Court on the A631 at Hemswell Cliff is an interesting functions centre, with 23 rooms of four star standard, that is performing well, but it only lets its rooms to groups that are attending functions. A similar operation is The White Heather which is a banqueting and functions centre with limited accommodation at Caenby corner on the A631. The three hotels in Gainsborough appear to operate around 55% occupancy. This is largely driven by the corporate sector in the town. Hickman Hill claims that corporate business accounts for as much as 90% of their total room night demand. Figure 32: Sun Hotel and Hickman Hill Hotel, Gainsborough Gainsborough in particular attracts significant corporate room demand from local businesses that include PING Golf, Gainsborough Golf Club, manufacturing firms and The Sands Jazz club. Market share is being lost back to Lincoln and Doncaster. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 51 J0895 Lincolnshire Hotel Development Strategy 6.2 Strategic issues The successful Marshall‘s Yard development has shifted the centre of gravity of the town to the east. The west side of the town centre has the potential to be particularly attractive because of the proximity to the river and the location there of Gainsborough Old Hall and the Church. There has been some attractive development on the river front, although there has also been some inappropriate development there. The Guildhall, vacated by West Lindsey Council, is at the centre of a strategically important council-owned site which extends towards the Market Place in the town centre. The Council issued a development brief in April 2007 and would favour hotel use on the site. A masterplan for the town, called Gainsborough Regained, was prepared by Gillespies on behalf of West Lindsey District Council, Lincolnshire County Council and Lincolnshire Enterprise in 2007. It does not seem to seem to, however, address holistically how the whole area incorporated by the church, the Old Hall, the Guildhall site and the riverfront can be made into a historic quarter that is a bit special. Figure 33: “Old Hall” Quarter Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 52 J0895 Lincolnshire Hotel Development Strategy This area seems to need a more holistic development strategy. 6.3 Development opportunities Gainsborough Town Centre Budget Hotel The most immediate opportunity seems to be for a budget hotel. Premier Inn and Travelodge would be the most obvious. Premier Inn have looked at out of town sites. It would be preferable if this was to be located within Gainsborough town centre so that it can play a role in the ongoing regeneration of the town centre. A location on Trinity Street, where it would have visibility, would seem to be optimal. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 53 J0895 Lincolnshire Hotel Development Strategy Figure 34: Possibilities for lodge hotel development in Gainsborough Finding a site on Trinity Street in proximity to Marshall’s Yard would probably be optimal in terms of town centre regeneration. There is understandable concern that a budget hotel might not architecturally be of the quality that the town aspires to and is consistent with the conservation area in the town centre. The budget hotel chains increasingly, however, put up buildings that are sensitive to their environment. Full service independent-orientated hotel on Gainsborough Riverside The Council envisages hotel use as the best option for the Guildhall site and has been marketing the site for that purpose. It has had some interest. This is seen as providing an anchor on the riverside side of the town to balance the effect of Marshall‘s Yard. Especially in current market conditions, it is not likely to be easy to secure a development for that site, partly because the town is on the small side to support a hotel of quality and partly because the centre of gravity in the town has shifted to the other side and the site does not have high visibility. It is quite likely that the Council will have to see this as a longer term opportunity. That area does, however, seem to have potential to be exceptionally attractive, especially if the Old Hall and Church can be integrated into a very quality mixed use ―heritage neighbourhood‖ that extends to the waterfront. Unquestionably, achieving a hotel of quality on the site would be good from a regeneration point of view and a good fit with a heritage-waterfront zone of quality that would make Gainsborough a bit special. Possibly the best way of making it happen might be: • Trying to achieve it as part of a larger and more comprehensive mixed use development of the area. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 54 J0895 Lincolnshire Hotel Development Strategy • A greater focus on the food and beverage and functions aspect than the rooms. Golf Resort Ping is a world class company, the ―Rolls Royce‖ of golf equipment, and owns a world class golf course in the town where people from around the world come to be fitted. It adjoins and area of the town which is designated for development. This seems to be an opportunity for a golf resort type development. Roadside Budget Hotel A budget hotel at a major road junction seems an obvious hotel development opportunity. Outside of Gainsborough, the junction of A15/A631 (Caenby corner) would be a good location. A budget hotel in that area would serve a substantial catchment, not least the antiques centre at Hemswell Antiques Centre and Market Rasen Race Course. 6.4 Recommended Actions • Look for possible sites for a budget hotel in the town centre and present them to the main operators, perhaps in conjunction with a developer. • Consider how the waterfront hotel could fit within a larger scheme. • Approach budget hotels to ask them if they have considered Caenby Corner. Identify the sites as preferred locations for this type of development. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 55 J0895 Lincolnshire Hotel Development Strategy 7. Wolds 7.1 Current provision This study has included Market Rasen, Louth, Horncastle and Woodhall Spa within its definition of ―Wolds‖. Most of the current hotel provision is centred around the former spa resort Woodhall Spa, which is the home of the National Golfing Centre. There are three hotels there of 3 star standard which appear to perform at around 60-65% annual room occupancy. All three have had substantial investment or are planning substantial investment. There is a mix of business including golf parties, air force heritage and reunion visits, tourists, and business generated by the RAF base at Coningsby. The Petwood, in particular, has a substantial functions operation. The Admiral Rodney at Horncastle, which is part of the Best Western Consortium, also performs well and also benefits from golf demand from Woodhall Spa. Louth‘s two main hotels, the Brachenborough and the Kenwick Park, are located outside of the town centre, to the north and south respectively. The Brachenborough is part of a small group and has been upgraded in townhouse style. It has a bistro operation which appears to be trading very well. There are no significant hotels in the Market Rasen area, although the Advocate Arms has just opened in Market Rasen as a gastro-pub with 7 rooms. Figure 35: Hotel supply – Wolds No. of Conference Star Hotel Location Rooms Capacity Rating Petwood Hotel Woodhall Spa 53 200 3 The Golf Hotel & Aquasante Spa Woodhall Spa 50 120 3 The Woodhall Spa Hotel Woodhall Spa 23 0 2 Advocate Market Rasen 7 0 2 Halfmoon Hotel Alford 17 0 2 Best Western Admiral Rodney Horncastle 31 140 3 Kenwick Park Hotel Louth 34 220 3 Brachenborough Hotel Louth 24 34 3 Beaumont Hotel Louth 16 150 2 Total 255 864 Source: Visit Lincolnshire / Locum Consulting research Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 56 J0895 Lincolnshire Hotel Development Strategy 7.2 Strategic issues 7.2.1 Louth Louth has a somewhat isolated location and is not large enough, probably, to attract substantial high street retail development. It has therefore been able to develop and sustain a substantial independent orientated retail offer, including a good selection of independent food shops. Having been prosperous in past times, the townscape is excellent and there are several interesting landmark buildings, including the outstanding church, which is attractively presented. All of this gives Louth potential to be a significant destination. It is the only Wolds town featured in the Rough Guide to Britain which states that ―with its striking church and antique centre, Louth is easily the most enticing of the region‘s towns‖. Unfortunately, the quality of the town is undermined by the poor public realm and the way in which traffic is allowed to dominate. Given that the town has a bypass, there is no obvious reason why it should be like this. Figure 36: Louth Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 57 J0895 Lincolnshire Hotel Development Strategy A townscape that could be very attractive and has an enjoyable range of shops is spoilt by the dominance of vehicles and the poor quality of the public realm. Town centres are at their best when they provide means for social interaction. In particular, people these days particularly like to be able to enjoy a meal or a drink al fresco and watch the world go by. The examples in Figure 37 are all towns similar to Louth that have made it possible for people to enjoy ―hanging‖ out in the town centre. Figure 37: Clockwise: Breukelen, Holland; Uppsala, Sweden; Trollhatan, Sweden; Bolsward, Holland. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 58 J0895 Lincolnshire Hotel Development Strategy Towns in Holland are also exemplars of the quality of public realm that places like Louth should aspire to. The first requirement is a better balance between cars and pedestrians. Also, in a relatively small, compact community like Louth, getting around by bicycle could/should be the norm for people of all ages. People of all ages should find it a pleasure to cycle to the shops. Figure 38: Drachten, Holland The town of Drachten has been particularly radical in its treatment of public realm and in developing the concept of “Shared Space” that has been gaining currency with progressive town planners worldwide. Ashford in Kent has become the first district in the UK to fully implement the principles. The idea is to remove the clutter from streets and to reduce the differentiation between pedestrian, cycle and vehicular space. In Drachten, traffic lights, Give Way/Stop signs, traffic barriers and heavily engineered kerbs have all been removed. The traffic has slowed and accidents are fewer because drivers are forced to concentrate. Aesthetically, the results are immaculate. As with most towns and cities in the Netherlands, there is no asphalt in the entire central area of Drachten. The surfacing is of exceptional quality throughout. Naturally, it is exceptionally cycle friendly and, therefore, it is not surprising that people of all ages choose to get about by cycle. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 59 J0895 Lincolnshire Hotel Development Strategy Figure 39: Franeker, Holland As with almost all small towns in Holland, Franeker shows how good it is possible for the built environment to be. There seems to be a particular need for a town initiative to focus on improvement of the built realm. It is a situation where a town centre masterplan seems to be particularly called for. Louth is not unique in this respect. Other towns in the county would probably benefit from the same approach, perhaps not least Stamford, and the same comparisons and considerations apply. There seems, however, to be a particular opportunity to create something special here, which may be a case for giving it priority. The presence of a strong independent food retail cluster, and its location at the heart of a major food producing area, suggests that there could be potential for Louth to focus on food as its main ―theme‖ in the way that Ludlow has so successfully done. This could be Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 60 J0895 Lincolnshire Hotel Development Strategy considered in detail as part of a visioning and masterplanning exercise (but, if there is buy-in, would not have to wait for physical improvements to the town centre). 7.2.2 Woodhall Spa Woodhall Spa has a distinctive sense of place and probably has potential as a destination. Its main tourism asset is the Golf Club. It is the home of the English Golf Union, the governing body for men‘s amateur golf in England. There are two courses, one of which is rated in the top 100 in the world. It also has training facilities that are amongst the best in Europe. This is one of the best golf tourism products in the country. About 30,000 people visit it annually but there is still capacity and the potential is not currently fulfilled, partly because the accommodation offer does not match up to the quality of the golf facilities. As one stakeholder described it, there is a ―5 star golf product supported by a 3 star infrastructure‖. This is a particular issue for the club when trying to find accommodation for very affluent players that it attracts on a not infrequent basis. The Club expressed considerable frustration with the state of the accommodation situation and said that it would consider having a special partnership with an operator that was prepared to invest in establishing a product at a higher quality level. The other considerable advantage that Woodhall Spa has is, of course, its thermal spa. The spa building itself is derelict and it would be very costly to restore or rebuild it. 7.3 Development opportunities Budget Hotel on Northern Outskirts of Louth Louth has a bypass for the A16 running north-south with larger businesses clustered around the new Fairfield business enterprise park to the north of town. A limited service budget hotel in this area seems like a good opportunity. East Lindsey Council has highlighted a plot of land opposite the park as a potential hotel development site. A developer has been in conversation with Whitbread about locating a budget Travelodge/Premier Inn style operation on the site. Marstons pubs are also rumoured to be interested, but not for accommodation. Townhouse hotel/Gastro pub with rooms in the centre of Louth It is unlikely that a hotel of substantial size could be sustained in the town centre, but there may be a niche there for a quality smaller hotel, probably with the catering and functions offer forming a dominant part of the business. Such a development could be a key anchor in terms of stimulating the development of the ―foodie‖ cluster and positioning Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 61 J0895 Lincolnshire Hotel Development Strategy Louth as a destination. The ideal would probably be a development in the very heart of the town. Although it would require detailed consultation with stakeholders in the town, the Town Hall might be a candidate for this. Using it as a restaurant/functions centre could actually make it more of a community resource than it is now. Figure 40: Louth Town Hall There are other development possible sites, including the Woodman Pub on Eastgate, which is owned by Enterprise Inns, one of the largest leased and tenanted pub company's in the UK. They are currently seeking a new tenant for it. Figure 41: Woodman Pub, Louth There is a small possibility of hotel development on The Old Cattle Market, a 5 acre site within walking distance of Louth town centre. It is on the market zoned for commercial mixed use. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 62 J0895 Lincolnshire Hotel Development Strategy Enhance Current Supply at Woodhall Spa The most immediate way to strengthen the hotel offer of Woodhall Spa would appear to be to work with the Petwood and Golf Hotel to assist them in developing and implementing their investment plans and, especially in the case of the Golf Hotel, to help them achieve best practice. The Petwood has a good niche as a ―3.5 star‖ and has maintained a consistent standard in that niche. It is a good product for the nature of the market and there is no obvious reason for substantial change. The Golf Hotel, which is alongside the golf course, has been investing in improving the rooms and has created a spa facility, the only one that uses the spa waters. They would like to add 50 rooms to create a total of 100 rooms. This property could potentially provide a larger, top of the range hotel with quality leisure facilities that Woodhall Spa would benefit from. It would probably be better placed to do this, however, if it was under the management of a quality operating company, preferably with a well-known brand. This might deliver a better return for the owners than running it totally independently. The Petwood Hotel also has planning permission submitted for 20 more bedrooms in an extension building. Golf Resort Alternatively, or in addition, there may be potential for a golf resort at Woodhall Spa, incorporating the golf club, hotel and a range of leisure facilities. The English Golf Union has indicated that it would not envisage doing such a development themselves but could make land available to a development partner. Market Rasen The race course would welcome a hotel development and the idea has been incorporated into the masterplan, which includes a lido-spa leisure facility. A hotel can provide a good fit with a spectator facility like this because hospitality facilities are good for conferences and functions. There is not very much, however, to generate trade in the Market Rasen area and, especially in the current market conditions, it would be challenging to interest an operator or developer. 7.4 Recommended Actions • Undertake a town ―visioning‖ exercise as a prelude to preparation of a town centre masterplan in Louth. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 63 J0895 Lincolnshire Hotel Development Strategy • Actively seek a suitable town centre site in Louth for a quality restaurant or pub with rooms, including assessing the possibility of the town hall being used for that purpose. • Discuss with food related stakeholders in Louth whether there is potential and interest in working to position the town as a ―Ludlow of the East‖. • Talk to the owners of the Woodhall Golf Hotel about the possibility of involving an operating company in their development plans. Investigate whether there might be public funding available to development of the spa as a landmark tourism development project. • Organise a visit by potential golf resort developers to examine the opportunities (this could include Gainsborough). Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 64 J0895 Lincolnshire Hotel Development Strategy 8. The Coast 8.1 Current provision The hotel supply of the coastal region is dominated by the traditional resort accommodation of Skegness. It includes hotels, guest houses and caravans. There are no significant hotels at Mablethorpe. In addition to the hotels, there are many bed and breakfasts and guest houses. Butlins is the overwhelmingly dominant presence. It has about 10 times more rooms than all of the other hotels in the area combined. It has plans for a 200 room hotel. Figure 42: Hotel supply – Coast No. of Conference Star Hotel Location Rooms Capacity Rating Facilities Butlins Skegness 3,200 2,000 2 Family leisure resort The Royal Skegness 72 100 3 Restaurants, bar Southview Park Hotel Skegness 62 180 4 Restaurant, bar, leisure facilities The Savoy Hotel Skegness 48 0 2 Restaurant, bar North Shore Hotel Skegness 36 105 3 Restaurant, bar, golf course Grosvenor House Skegness 30 0 2 Bar, café The Crown Hotel Skegness 29 0 2 Restaurant, bar, close to golf The Queens Skegness 24 0 2 - Best Western Vine Hotel Skegness 22 105 3 Restaurant, bar Palm Court Hotel Skegness 14 0 2 - Rufford Hotel Skegness 12 0 2 - Total - incl Butlins 3,549 2,490 Total - excl. Butlins 349 490 Source: Visit Lincolnshire / Locum Consulting Research Southview Park, a 62 bedroom 3 star resort hotel on the outskirts of Skegness appears to be the most comprehensive hotel offer in the area. It operates at around 55-60% occupancy, charging £70 per room night for a standard double with breakfast. The Royal is the other relatively large hotel. It is a beautiful Victorian ―Grand Hotel‖ type property. It recently changed ownership and has had investment over the last two years. Rack rate for a standard double room is £59. Harrison Developments (York) have been actively seeking potential budget hotel development sites in partnership with Whitbread on the Wainfleet road and on the Skegness foreshore. Blue Anchor are understood to be marketing 22 caravan sites for sale through Knight Frank. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 65 J0895 Lincolnshire Hotel Development Strategy 8.2 Strategic issues Difficult Circumstances The coastal resorts in Lincolnshire are like most others in the country in that they have been the victim of rapidly changing market conditions, with their customers increasingly taking their holidays abroad. Only a handful of Britain‘s traditional resorts have escaped without severe problems, and there have been few new hotels in them. There are some green shoots nationwide. Southport, for example, which Locum has been advising since 2003 on repositioning itself as ―England‘s Classic Resort‖, seems to have reached a tipping point in its fortunes. After having no new hotels, apart from a Travelodge, for 4 decades, a 70 room town house boutique hotel has opened on Lord Street and is trading successfully, and a 150 room Ramada Plus is soon to open adjoining the refurbished conference centre overlooking the Marine Lake. The latter development had public funding support via the regional development agency. In Morecambe, the innovative developers, Urban Splash, have, with funding from the regional development agency, restored the art deco Midland Hotel and are planning to operate it themselves as part of a chain of small, prestigious hotels. In Blackpool, which is totally dominated by low-mid market independent product, following success in creating a B&B voted as the best in Britain, an innovative entrepreneur has converted a 2 star property at South Beach into a very high quality boutique hotel. Blackpool Pleasure Beach have opened the first major new hotel in the resort for many years, called Big Blue, and found it to be a big success. Locum has been doing a lot or work recently in Jersey where there has been a tidal wave of investment, mainly by ―second generation‖ proprietors of family owned hotel companies, all of it pitched at an exceptionally high level with top class spa facilities. The tipping point in that case was the decision by a family owned company, when the son of the man who built it up took over, to convert a 2 star property into a top of the range town house hotel with spa and the Island‘s first Michelin starred restaurant, called the Club. Such was its success that about six others followed suit. The circumstances are different in that Jersey has a large financial services industry, but it does show how, sometimes, the brave actions by one company can have a domino effect on others. In the coastal areas of Lincolnshire, with the exception of Butlins, it is more likely that investment will be similarly home grown rather than be through outsiders. A better understanding of the static caravans needed There are, reputedly, about 30,000 bed spaces in static caravans in the vicinity of Skegness. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 66 J0895 Lincolnshire Hotel Development Strategy There seems to be little understanding, however, of exactly what they are actually used for. It appears that they represent a mixture, de facto if not technically, of homes, second homes and some holiday accommodation. The latter probably represents a relatively small proportion. They generally seem to be regarded as ―tourism‖ facilities, but it is quite likely that their tourism impact is considerably overstated and that the size of the permanent and semi permanent community that lives there is understated. It would seem to make sense from many perspectives to have a considerably better understanding of the true nature of the static caravan parks. Ingoldmells is the true tourism hub and could perhaps benefit from a separate development and marketing strategy It appears that a larger proportion of the true coastal tourism business than is commonly realised is concentrated not in Skegness but in Ingoldmells, where Butlins and Fantasy Island between them are major ―star‖ attractions. It is, de facto, a resort in its own right, possibly the largest of the kind in the UK. Substantial investment has been taking place at Butlins and they plan a hotel on the model of the one that they have built in Bognor Regis. With the possible exception of a budget hotel in Skegness, this is the most likely investment that there is to be. Figure 43: Butlins Hotel under construction in Bognor Regis Bourne Leisure announced in January 2009 the opening of a new £20m hotel at its Butlins Bognor Regis resort in August 2009. The Ocean Hotel will offer 200 bedrooms equipped with new features such as rainfall showers, colour change lighting, widescreen televisions and DVD players, as well as private balconies overlooking the sea and the South Downs. Family rooms will also contain a separate children’s den for increased privacy. Additional facilities will include a restaurant and bar, a spa and landscaped gardens. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 67 J0895 Lincolnshire Hotel Development Strategy There seems to be little thought currently as to how it could work more effectively as a resort, even create a brand presence of its own. This seems to be another case where a ―vision‖ and masterplan could pay big dividends. Skegness seems to need a change of strategy Skegness is typical of many resort towns that has fallen on hard times as a result of changing holiday patterns. The idea that these trends will suddenly reverse and that tourism will revive seems unlikely. On the contrary, it seems more likely that decline will continue. It is unlikely, in particular, that the next generation of ―empty nesters‖ will be as enthusiastic about the sort of hotel and guest house on offer as is currently the case. Excluding the Southview Park Hotel, which is outside of the town, there are only about 280 hotel rooms in the towns, less than in many single city hotels. They are also operating at achieved income per room that is far below a typical city hotel. They are not, therefore, realistically a major economic driver. The seaside towns that have most successfully withstood the decline of UK seaside holidays have been those that have seen themselves as towns by the sea rather than resorts. It would seem that the greatest hope for Skegness would be to reinvent itself as a very attractive town by the sea, where tourism is seen as a part of the general economic mix, rather than a resort, where tourism is seen as the heart of the economy. One of the implications of doing this would be a deliberate attempt to change the character of the seafront, turning away from the bucket and spade dimension and instead focussing on something that does more to enhance the quality of the town as a place to live and work. It is possible that a new hotel, using the casino licence, could play a part in this. For example, the town might aim to create a high quality ―water garden‖ on the seafront area, perhaps even with an admission charge. A hotel with extensive food and beverage and functions facilities overlooking the sea could be a focal point of this. It could even include the UK‘s first thalassotherapy spa (see Figure 15 above), which could give it landmark status. Something of this sort of quality might stand a chance of helping to redress the image of Skegness and, as with the Midland Hotel in Morecambe, might be worth investing public funds in because of the regenerative impact it could have. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 68 J0895 Lincolnshire Hotel Development Strategy Figure 44: Tower 23 Hotel, Pacific Beach, San Diego Ultra cool hotel overlooking the sea with very substantial food and beverage offer making the most of the seaside location. If Skegness could achieve something like this, it could play a key role in its regeneration. It would require, however, an outstanding location, gap funding and, perhaps, the use of the casino licence. Skegness might benefit from a proactive Planning Policy for conversion of obsolete visitor accommodation to residential There is currently probably a substantial amount of visitor accommodation, especially in Skegness, that is essentially obsolete and is being utilised in a sub-optimal way: this includes a number of small hotels, bed and breakfasts and guest houses operating inefficiently in the middle and bottom end of the market. Not all hotel, guest houses and bed and breakfasts are being operated inefficiently. Many provide a valuable part of the low cost serviced accommodation offer. Some are operated as ―lifestyle‖ businesses, quite validly. Overall, however, there is too much visitor accommodation of this nature for the likely demand. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 69 J0895 Lincolnshire Hotel Development Strategy Some owners would probably give up the business if they were able to realise a market value for the property or secure a replacement residence in a reasonable location. Some of the visitor accommodation could be effectively upgraded. In many instances, however, there is not sufficient inherent quality in the property to generate a worthwhile return on investment from upgrading. The tourism market has turned away from such property. It would probably be better utilised as residential. The main aim should be to avoid properties deteriorating into homes in multiple occupation. A managed approach to this, perhaps involving a housing association, seems to be the optimal way of proceeding. 8.3 Development opportunities A Budget Hotel on Skegness Seafront Locum‘s view is that not only is there likely to be demand for a budget style hotel but it would be to the advantage of the town to have that type of product. It would probably provide incentive to other operators to improve their standards. The Council is, rightly, concerned not to allow a building of poor quality in a prime location on the seafront, but many recent budget hotel developments have had architecture of reasonable quality. The ideal would be a site on the seafront near the centre of town that is ―almost prime‖. A “Hip” Caravan Park Static caravans provide an ideal holiday option for many people, especially young families. It could be interesting to try and update the image by persuading someone to do an updated version by focusing on art/design in a slightly ―arty-kitsch‖ way. Landmark seafront hotel As discussed above, this could be a key regeneration initiative, but is likely to require gap funding and should ideally be the centrepiece of a holistic regeneration programme aimed at changing the image and nature of Skegness. 8.4 Recommended Actions • Work with the key stakeholders in Ingoldmells to develop a vision and plan for the development of the resort there. Focus on this as the main opportunity for holiday tourism development on the coast (indeed, probably in the East Midlands region as a Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 70 J0895 Lincolnshire Hotel Development Strategy whole). Actively encourage and support the development of the proposed Butlins hotel. • Try to interest an operator in creating a ―hip‖ caravan park and assist in providing professional help with the design and marketing. Do this via the proposed Hotel Excellence programme. • Actively seek an optimal site for a budget hotel on the Skegness seafront, preferably as near to the town centre as possible. • Develop a vision and masterplan for Skegness, starting with the aim of creating an ―exceptionally pleasant town by the sea‖. • As part of that, undertake an options appraisal on a landmark hotel/casino/thalassotherapy spa combination. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 71 J0895 Lincolnshire Hotel Development Strategy 9. The South 9.1 Current provision For the purpose of this study, ―The South‖ is defined as including Sleaford, South Kesteven, Boston and South Holland. Much of the demand for hotels in the area is generated by business travellers to Peterborough and Grantham. This has driven development in the budget sector and led to the emergence of some high quality B&Bs. The Grantham area has the highest density of hotel supply with around 570 rooms. This includes the Belton Woods resort and 165 budget hotel rooms (1 x Premier Inn and 3 x Travelodge). The main hotel in Grantham is the Angel and Royal on the High Street, an independent 3* level property. The Angel and Royal is owned by Ashdale Hotels and has a recently modernised contemporary interior and old coaching inn exterior. It is usually busy from Tuesday to Thursday with business visitors. Leisure demand is smaller and comes from the grey market and from weddings held at the De Vere nearby. Just out of town, the Premier Inn is doing very good business and is apparently turning business away during the week because it is full, achieving an average occupancy of 80% and an average room rate of £55. The current capacity of 60 rooms will be increased in January to 94 rooms with the opening of an extension. The nearby Ramada, a Marriott Hotel until November 2007, is, however, filling rooms with low value coach parties, despite having the biggest meeting rooms in the area which attract both corporate and wedding bookings. The fact that the hotel was not upgraded to retain Marriott brand may indicate a perceived weakness in demand for 4*. In the south east of the county, there has been development in the budget sector with Travelodges at Spalding and Long Sutton. Boston has a Premier Inn and the new Boston West Hotel, with 24 rooms, at the golf course. There is also a Travelodge at Sleaford. The majority of hotel demand in Spalding comes from business travellers, although there is some leisure use, particularly linked to events. Spalding visitors commute to Grantham and Peterborough when higher grade (3-star plus) accommodation is required. The opening of the A1073 in 2010, which will improve access to Peterborough, is likely to add to the need for suitable business accommodation. The most recent hotel to open in Spalding is a 43 bedroom Travelodge at Springfields, a mixed use site with a factory outlet centre and exhibition venue. The hotel is achieving a high average occupancy of 75% and a good average room rate of £40. The hotel is often full on week nights between Monday and Thursday when it is filled by people working n the area. The leisure demand, primarily on Fridays and Saturdays, is often linked to the events Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 72 J0895 Lincolnshire Hotel Development Strategy which take place in Springfield, such as wedding fares and motorcycle shows. The fact that the hotel can accommodate families is also particularly important since the independent properties in the area rarely have family rooms. Stamford, in South Kesteven, has three hotels, although there are several upper end B&Bs and guest houses, all of which have very high occupancy levels. The hotels are also doing very well, averaging between 70% and 80% occupancy. Much of the demand comes from business travellers to Peterborough and Grantham although the leisure market is also important, particularly linked to the Burghley horse trials and ‗film tourism‘. The attractiveness of the town also brings a large wedding market and the proximity to the A1 makes it a popular stopping off point. The George is considered to be the best hotel in the town. It is a 47 bed 3* property which has traditionally enjoyed a good reputation, one that is deserved because of the outstanding, slightly quirky, service it provides, albeit the décor is perhaps now a little tired. We understand they operate at a high occupancy (about 80%) and turn business away at peak periods. The Crown Hotel is a more contemporary 3* property with 26 bedrooms, in the town centre. Although it is also achieving good rates, and is very busy, it is on a noisy street. The only other hotel in the town is the Lady Anne‘s Hotel, owned by the Burghley Estate and operated by the Hastings family. The property is in a poor state and is not quality assessed. The owners would like the property to be redeveloped and extended but there have been planning issues relating to the scale of proposed development. With demand exceeding supply much of the time, the existing properties are able to command particularly high prices which may not always reflect the standards that they offer. Boston has limited accommodation supply although it is thought to be largely adequate for the existing demand. There is limited business need and the requirement for rooms for leisure visitors is met mainly by B&Bs. Of the two hotels in Boston, the White Hart is the considered the best. It is a stylish, traditional property with a modern interior, on the river. It is doing very well and the owners may intend to extend the accommodation, linked to a residential development. There are a few budget hotels outside the town, including a Comfort Inn and a Travel Lodge. South Holland in general lacks high quality accommodation. There is only one 3-star property. There is no resort style hotel or hotel with decent meeting facilities. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 73 J0895 Lincolnshire Hotel Development Strategy Figure 45: Hotel supply – South No. of Conference Star Hotel Location Rooms Capacity Rating Facilities Premier Inn Boston 73 0 2 Limited service New England Hotel Boston 28 0 2 Restaurant Boston West Hotel Boston 24 100 3 Golf, catering Whitehart Boston 24 80 3 Restaurant, bar De Vere Belton Woods Grantham 136 245 4 Country golf resort The Olde Barn Hotel Grantham 112 300 3 Restaurant, bar, spa Premier Inn Grantham Grantham 92 0 2 Limited service Ramada Grantham Grantham 89 200 2 Restaurant, bar Travelodge South Witham Grantham 32 0 2 Limited service Travelodge A1 Grantham 30 0 2 Limited service Travelodge Colsterworth Grantham 30 0 2 Limited service Angel & Royal Grantham 29 0 2 Restaurant, bar Kings Hotel Grantham 21 20 2 Restaurant, bar Travelodge Long Sutton Long Sutton 40 0 2 Limited service Travelodge Sleaford Sleaford 40 0 2 Limited service Lincolnshire Oak Sleaford 17 150 3 Restaurant, bar, catering Travelodge Spalding Spalding 43 0 2 Limited service Cley Hall Hotel Spalding 15 0 3 Restaurant, bar, weddings Red Lion Hotel Spalding 15 0 2 - Woodlands Hotel Spalding 15 20 3 - The George at Stamford Stamford 47 50 3 Restaurant, bar, business centre Lady Ann Stamford 30 0 2 - Garden House Hotel Stamford 20 60 3 Restaurant, bar, events rooms The Crown Stamford 17 0 - Restaurant, bar Total 1019 1225 Source: Visit Lincolnshire / Locum Consulting research 9.2 Strategic Issues England’s Finest Market Town Stamford is one of the most interesting and attractive towns in the South. A former wool town, it has retained many of the original old Lincolnshire limestone buildings and is used regularly as a period film location. Its accessibility and the proximity of Burghley gives it additional allure. Despite its relatively small town centre, it is able to sustain 30 pubs and 20 restaurants, and it has an interesting and diverse retail offer. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 74 J0895 Lincolnshire Hotel Development Strategy It is not clear that the ―specialness‖ of Stamford, and the potential which that brings with it, is fully reflected in the way that the town is dealt with in terms, in particular, of treatment of the public realm, and also that it is marketed as effectively as it might be. The same sort of analogies and comparisons that are discussed in the section on Louth (See section 7.2.1) apply, only perhaps more so. Because the matter is not central to this study, we have not examined it in detail, but there may be a particularly strong case for the development of a ―Place Strategy‖ for Stamford that, in conjunction with the community, tries to encapsulate what makes it special both for people who live there and for potential visitors, and what could be done to make more of that specialness. Part of that exercise could be a consideration of the type of hotel development that might be appropriate. It is possible, for example, that Stamford is a place where a budget hotel might compromise the sense of ―specialness‖. 9.3 Development Opportunities Stamford Our view is that an optimal type of development in Stamford would be an up market town house style hotel, preferably with a spa and with a quality functions offer. This could either be part of a small up market group (such as Abode or Hotel du Vin) of a destination independent hotel. Figure 46: Vincent Hotel, Southport Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 75 J0895 Lincolnshire Hotel Development Strategy The Vincent has been developed by a businessman who had achieved success with the town’s only Michelin starred restaurant. The hotel is located in a prime site at the heart of Southport’s fine Lord Street. It has instantly become a “hip” destination. The restaurant is typically full at both lunch and dinner. It includes a club which stages an exceptionally innovative programme of events, including hosting famous artistes. Sefton Borough Council played an active role in encouraging the development and helping with site acquisition and planning. The most immediate opportunity is for the development of the Lady Anne‘s Hotel, something which the owners, the Burghley Estate, are keen to achieve. The situation is sensitive because the current operators, the Hastings family, have managed the property for many years. At present, however, they have a very short term lease and are understandably unwilling to invest. The owners meanwhile are not prepared to grant a longer tenure because they believe that more should be done with the site. To break the deadlock, a suitable developer and possibly operator will need to be found. The property is very well located on the junction of the A16 and the B1081 and is the first building that is seen on entering the town. The building dates back to 18th Century and is set in 3.5 acres of woodland. The hotel currently offers 26 bedrooms, a restaurant and some meeting rooms. A development scheme has been produced on behalf of the owners which retains the original façade and extension behind bringing the total rooms to 50. There are no developers interested at present and although the site is not big enough to be attractive to the bigger companies, it could be suitable for a boutique brand in the Hotel du Vin mould. In addition, two potential development sites have been identified at the Cattle Market and Welland Quarter. Masterplans are needed for both areas and once produced could kick start progress. Either could potentially incorporate a hotel of the nature of the Vincent. The Cattle Market site is on the river, adjacent to the railway station. It is owned by South Kesteven District Council. It is used as a car park and although there are no defined plans for the area at present, Waitrose has recently expressed an interest. There may be some flood risk although the consultants acting for Waitrose state that these are easily Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 76 J0895 Lincolnshire Hotel Development Strategy overcome. It would perhaps allow the opportunity for a high quality new build of the type of the Vincent in Southport. The Welland Quarter is a 12ha site also on the river, which has been designated as an Opportunity Area by South Kesteven District Council. The site is in multiple ownership and is defined as suitable for a major new ‗residential, retail, employment and leisure‘ scheme. The time frame is seen as a 10 to 15 year opportunity. Grantham Demand in Grantham is also mainly from business travellers and although events generate demand at certain times, occupancy generally is significantly better during the week. There are a number of plans for the town, including two Growth Point sites which may add to the demand from business users, although it is unlikely that they will make any significant difference to the overall need in the short to medium term. Gillespies have produced a masterplan for the town centre which has mapped out potential uses for a number of sites which include additional office and residential accommodation. There are also sites identified for hotel provision which is probably suited to budget accommodation. It would seem, however, that the optimal type of development might be a niche above – a full service hotel in the 3.5 - 4 star range. Figure 47: Ramada Plaza Hotel, Southport A second hotel to have opened recently in Southport is a 133 room Ramada Plaza. It was built by Liverpool based Neptune Developments and includes a separate restaurant complex. An offer of this nature would probably be popular in Grantham and give the hotel offer in the south of the county an element of variety that is currently missing. The Grantham Station Approach site is in a prominent location next to Grantham Station. GVA Grimley has been appointed to produce the development brief which will be available next year. The uses they have identified include high quality office use with some ancillary Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 77 J0895 Lincolnshire Hotel Development Strategy residential and retail, and a hotel site. The total site size is 5ha of which 25,000 sq ft has been identified for the hotel development at the town centre end of the plot. Although work is still being done on the development brief, GVA Grimley are of the opinion that the opportunity would work well for a premium budget style hotel that catered for business and some leisure use. The opportunity may suit a Jury‘s Inn or similar brand. The site of the former Grantham Canal Basin has also been designated as a Growth Point priority and a mix of uses including residential, office, leisure and F&B have been identified. The total footprint of the site is 28ha and is in multiple ownership including British Waterways, Lincolnshire County Council and South Kesteven District Council. British Waterways have begun strategic site acquisition within the designated area. Although the site is intended to have a strong leisure component, it is probably a longer term proposition, unlikely to be realised within the next 10 years. Sleaford and the estate villages Sleaford is also largely dependent on business tourism, although this may be due partly to a lack of suitable hotels for leisure uses. There are a number of attractive estate villages between Spalding and Lincoln which could, with suitable accommodation, be attractive for weddings or residential corporate meetings. There are several potentially suitable properties on the market, which could be converted to country house hotels. Unfortunately there are very few developers interested in this style of property currently and finding an interested company would probably prove to be very difficult. An exceptional property might be suited to a spa. There are two potential opportunities however which are worthy of further attention and where accommodation could potentially be part of a mixed use, independent orientated, destination development. Blankney is a lovely estate village between Sleaford and Lincoln which has a golf course and cricket pitch but no visitor accommodation. The estate hall has been demolished but the original stables remain, now unoccupied and partially derelict. The properties would be ideal for a courtyard of craft shops and cafes which would provide a focus for visitors. There may also be opportunities to add a small hotel on the site. It would almost certainly require public funding to restore the buildings and develop the necessary infrastructure. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 78 J0895 Lincolnshire Hotel Development Strategy Figure 48: Blankney Estate Stables Blankney is an attractive estate village about 15 miles north of Sleaford and 10m south of Lincoln. It has a private golf course (which accepts visitors), cricket pitch and village green. There is no other accommodation in the village. The stables are privately owned by a local family who have approached the council about selling the property. The buildings are in a poor state and are semi derelict. There is no house attached (the Hall burnt down in the 1960s) although there are other buildings near by. The buildings would be suitable for a courtyard development of craft shops and cafes. There may also be an opportunity for a small hotel on the surrounding land. The second opportunity is at Sleaford Maltings, a magnificent range of listed buildings that could be a destination of exceptional quality. The developers, Gladedale, have identified a mix of uses for the site but would be interested to discuss the opportunities for a hotel within the complex. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 79 J0895 Lincolnshire Hotel Development Strategy Figure 49: Sleaford Maltings The Maltings, or Bass Maltings, in Sleaford, were built in the early C20th and have been disused since the 1960s. The total footprint of the buildings is 500,000 sq ft. This includes eight former malthouse buildings, three of which have been fire damaged. There are a number of other ancillary buildings on the site. It is grade II listed. Suitable uses identified in a Supplementary Planning Document include retail, leisure, culture, residential, business and employment. Gladedale have owned the property since 2006. They are looking to retain the leasehold and sub let. Their plans include a mixed-use development with residential, office and healthcare use. There is a new relief road being built so they anticipate passing trade. There is potential to incorporate a hotel into the complex and Gladedale would be interested to consider how this could be added to the existing mix. The unusual nature of the site and availability of existing buildings and land could be suitable for a range of different types of property including a premium budget hotel or a boutique style hotel. The optimal type of hotel would depend on the nature and positioning of the rest of the development. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 80 J0895 Lincolnshire Hotel Development Strategy Figure 50: Staveley Mill Yard, Cumbria Staveley Mill Yard is a family owned rural business park that has been developed into a mixed use “village” of independent businesses. The converted timber mill is occupied by a range of independent businesses which, typically, produce product on site for sale elsewhere, but also sell to visitors to the yard. It includes a cycle superstore, a micro brewery and a popular bistro. Many of the businesses are food-orientated and there is a cookery school. It has a particular appeal to a “cosmopolitan” audience and is thriving as a destination despite undertaking no marketing and being in a location that is somewhat out of the way (albeit it is easy accessible from the main road into the Lake District). The owners have plans for a 14 bed “apart-hotel” that is aimed to serve a combination of the small businesses in the area and tourists who are particularly interested in cycling and walking. There are many other examples of attractive and successful developments of this ilk around the country such as Snape Maltings in Aldeburgh and Salts Mill in Bradford (which has similarity in “feel” to Sleaford Maltings). Spalding There is a site at Springfields that could be suitable for a conference hotel property. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 81 J0895 Lincolnshire Hotel Development Strategy The King family currently owns and operates two hotels in the area, Cley Hall and Woodlands. They have ambitions to develop two more properties in sites they own, both off the A16. The first would be a budget accommodation, the second potentially a four star property with business facilities. The two King sites are well located and may be attractive to branded properties which could operate under a franchise. South Holland The future need in the area is likely to be for more branded accommodation which would cater primarily for business users but would also provide more family rooms when these are needed. There are a number of factors that are likely to combine together to create significant future hotel demand. The growing number of jobs and employment has grown in South Holland by 64% in the last 10 years and a critical mass of investment in tourist attractors is planned to include Red Lion Street, the Fens Waterway Link and the Butterfly Park. There are also significant confidential infrastructure projects and demand from the Holbeach University Campus. These equate to good future demand growth over the next 3-5 years. The Bridge Hotel, Sutton Bridge near Spalding This is an existing hotel overlooking the bridge which was renovated recently. It went into receivership about four months ago. It is apparently a viable property if a new owner or financer/ operator could be found. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 82 J0895 Lincolnshire Hotel Development Strategy Figure 51: The Bridge Hotel The Bull Hotel, Long Sutton The building is very well located in the centre of the village. The property and location appear to be suitable for a stylish Inn or pub with rooms. There would not be sufficient space for a major development. We understand the hotel is in the final stages of gaining planning approval. Springfields Shopping and Garden site, Spalding There is a site available as part of the Springfields Shopping development that South Holland Council consider suitable for conference hotel development. Exact details of the site are unknown but there is still significant latent demand. Boston Modus are developing a mixed use retail scheme on an 11 acre site in West Street in the town centre. It will contain mainly high street branded stores with a few independent units. There is also residential use and a supermarket. It is due to open in 2011 or 2012. There may be potential for a hotel within the development. The most obvious candidate would be another budget hotel, but it would de good for Boston as a destination if it was able to attract a high range brand or townhouse style independent. The Fens The Fens has a highly distinctive sense of place. It has a niche tourism offer of, potentially, some attractiveness. The main ingredients of the offer would seem to be related to ―getting away from it all‖, being able to enjoy pleasant market towns that do not feel ―touristy‖, to be able to cycle and walk in a family friendly environment, and to be able to enjoy good food in pleasant pubs and restaurants. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 83 J0895 Lincolnshire Hotel Development Strategy 9.4 Recommended Actions • Work with the Burghley Estate to investigate optimal possibilities for development of the Lady Anne‘s Hotel. • Consider up market hotel uses in development briefs for the two key development sites in Stamford. • Open discussions with the owner of Blankney Stables about the possibility of a mixed use destination orientated development there. Assistance could be provided to secure funding to restore the buildings and bring them back in to use. • Similarly, discuss with Gladedale the possibilities for more destination orientated uses in the Sleaford Maltings, perhaps including a hotel. • Help to facilitate development on the other sites identified. • Give priority to assisting the development of a small rural apart-hotel in the Fens as part of the Hotel Excellence programme. • Engage with Modus to explore options for hotel within the West Street development. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 84 J0895 Lincolnshire Hotel Development Strategy Appendices Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 85 J0895 Lincolnshire Hotel Development Strategy 10. Using this Report The purpose of this guide is to enable the local authorities of Lincolnshire to understand their hotel offer and attract the most suitable hotel investment to improve the overall accommodation offer of the county. The following is a suggestion as to how it can be used: 1 Read and understand this report. It explains the supply and demand context of each local authority area and the county as a whole 2 Identify the most suitable and realistic hotel development opportunities. We have listed our recommended sites in this report 3 For each site, collect all the information that a potential hotel developer / investor would require — Total land size of the site — Percentage of the site that can be built on — Current use of the site — Land use zoning and planning permissions for the site. How many stories would be allowed? — Description of the location — Description of connectivity and access. How close is it the city centre/station/main road/major visitor attraction/business park — Suggestions on the type of hotel that could be developed. See our recommendations for each area. — Suggestions on the facilities of the proposed hotel, range of number of rooms, restaurant, bar, conferencing facilities, leisure facilities etc. 4 Layout all the information as a one page summary 5 Add a map – clearly mark the site on a local orientation map 6 Add photos – include two or three images of the site from all angles 7 Gain an understanding of hotel feasibility studies. In order to borrow the money from a bank to build a new hotel, or to attract a branded operator, the developer needs a ―Market and Financial Feasibility Study‖ to demonstrate the hotel is a sound business proposition. It‘s a business plan for a hotel. Here is a generic contents page of such a report: — Executive Summary — General, Economic & Tourism Background of the area Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 86 J0895 Lincolnshire Hotel Development Strategy — The Site – Overview — The Hotel Market in the area (Supply and Demand) — The Proposed Facilities and our Recommendations on these — Analysis and Financial Projections — Development Cost Estimates — Cash Flow and Feasibility Analysis 8 Contact developers and investors and market the specific sites mentioned. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 87 J0895 Lincolnshire Hotel Development Strategy 11. Major Hotel Operators and their potential for Lincolnshire This section summarises the main active hotel operators and developers in Britain and assesses the likelihood of them being interested in the opportunities that have been identified in Lincolnshire. 11.1 A B Hotels The Bryanston Court and Concorde hotels in London were purchased in 2002. These hotels are now being converted into a new 80 bedroom hotel to be called the Arch and due to open in 2009. Number of operational Hotels: 2. Under construction: 1. Lincolnshire potential: Limited 11.2 ABode Hotels Mid to upscale market boutique style hotels. Currently has properties in Exeter, Canterbury, Glasgow, Manchester and is currently developing in Chester, due for opening in 2009. Actively reviewing potential developments in 2 other locations. Number of operational Hotels: 4 Under construction: 1 Lincolnshire potential: Would be a good brand fit with Lincolnshire Uphill and, in particular, the Judges Lodgings/White Hart Car Park site, and also with Stamford. 11.3 Apex Scottish based operator of Malmaison style hotels with three in Edinburgh, one in Dundee and one in the City of London. Three new hotels are planned in Edinburgh and London, opening during 2009 and 2010 respectively. Number of operational Hotels: 5 Under construction: 3 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 88 J0895 Lincolnshire Hotel Development Strategy Lincolnshire potential: Unlikely to be interested, but theoretically a good product for Uphill Lincoln and Stamford. 11.4 Accor Huge French company that has a portfolio of brands including Formula 1, IBIS, Novotel, Mercure and Sofitel. Most of their units in the UK are Novotel (4 star), Mercure (, and IBIS (budget). They are sometimes combined in the same development. They have the following hotels in the UK (136 in total): Figure 52: Accor Hotels in the UK Brand Hotels Novotel 31 Mercure 30 IBIS 51 Etap Hotel 16 Formula 1 5 Sofitel 3 Lincolnshire potential: Novotel or Mercure would be good candidates for Lincoln. Opportunities for Ibis in other county towns. 11.5 Arora International Ltd The company purchased in 2005 the Le Meridien at Gatwick which is now run as a Sofitel. In 2008 they purchased the Renaissance at Gatwick which has been rebranded as a Mercure. They are operating the 600 bedroom Sofitel which opened at London Heathrow Terminal 5 in 2008. In association with Surrey CCC they will manage the new 170 bedroom hotel to be built at the Kennington Oval. They have purchased a number of sites near airports from the Airport Property Partnership which could be used for developing new hotels. Number of operational Hotels: 7 Under construction: 0 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 89 J0895 Lincolnshire Hotel Development Strategy Lincolnshire potential: Unlikely. They specialise in airport properties. 11.6 Aston Hotels Ltd The company is developing a budget brand called Aston. The first was opened near Darlington in 2005. This was followed by Dumfries in 2006 and Rotherham in 2008. A further Aston will open at Port Talbot in 2009. Number of operational Hotels: 3 Under construction: 1 Limited potential for Lincolnshire 11.7 B D L Hotels Ltd B D L Hotels Ltd is a Company building & operating Express by Holiday Inns, Crown Plaza and Ramada Encores. They have 13 hotels across the country, and 6 under construction. They plan to build around 40 new Ramada Encore hotels during the next 6 to 7 years. These will be operated by an associated company Ramcore Hotels. Number of operational Hotels: 13 Under construction: 6 Lincolnshire potential: BDL would be a good candidate for Lincolnshire but they have been hit by the downturn and may not look at new projects for a period of time. 11.8 Ballymore Properties Ltd Let the 169 bedroom hotel which opened in 2007 in New Providence Wharf in London to Radisson Edwardian. In conjunction with British Waterways they are developing a hotel at Wood Wharf near Canary Wharf. They are also building a new hotel at Snow Hill station in Birmingham. Another hotel has just started construction at Hayes Scrapyard in Middlesex. Number of operational Hotels: 0 Under construction: 3 Limited potential for Lincolnshire Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 90 J0895 Lincolnshire Hotel Development Strategy 11.9 Bannatyne Hotels The company has hotels in Hastings, Darlington and Durham. They will be developing a new 50 bedroom Bannatyne in Thorpe St Andrews, Norwich. Number of operational Hotels: 3 Under construction: 1 Limited potential for Lincolnshire 11.10 Beck Conroy Consulting They currently have one operating hotel with 2 under construction. The company purchased the Holiday Inn in Sheffield in 2006. They have submitted plans for 2 new hotels a 198 Crowne Plaza and a 161 Holiday Inn Express both to be built on the site of the old Smithfield Market in Sheffield. These will be operated by Intercontinental Hotels. Number of operational Hotels: 1 Under construction: 2 Some potential for Lincolnshire 11.11 Bespoke Hotels Have a national spread of properties, including hotels in: Edinburgh, Mellor–Lancashire, Lavenham, Winchester, Maidenhead, and Taunton. The portfolio includes 15 hotels, 2 hotels under construction, a golf club and a members club. They have properties under construction in Liverpool and Surrey. Number of operational Hotels: 15 (excluding members club) Under construction: 2 Lincolnshire potential: Possible. 11.12 Blackstone Group American company which previously owned Savoy Hotels plc. They bought Hilton Hotels in 2007. They are proposing to build a new Waldorf Astoria in the City of London. They also hope to open a new Conran hotel. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 91 J0895 Lincolnshire Hotel Development Strategy Lincolnshire potential: Below their radar 11.13 Butterfly Hotels Ltd The company was taken over by Crowne Hotels in 2004. The 4 original hotels were re- branded as Ramada. In 2006 they purchased the Cromwell hotel at Stevenage and the Holiday Inn at Castle Bromwich re-branded as an Express by Holiday Inn. In 2007 they purchased the Citilodge in Nottingham re-branded as a Days Inn. A Holiday Inn in Banbury has just been opened Number of operational Hotels: 8 Some potential for Lincolnshire 11.14 Campanile (UK) Ltd The company was purchased in 2005 by Starwood Capital. New hotels opened in 2003 in Glasgow and Leicester. Bradford was converted from Novotel and Swindon from an Ibis. Number of operational Hotels: 19 Under construction: 0 Some potential for Lincolnshire 11.15 Carillion Plc The company was formerly Alfred McAlpine plc and was taken over by Carillion in 2007. They are developing, in a joint venture with New World Leisure Operations, a number of Ramada Encore Hotels. Work has started on new hotels at Crewe and Barnsley, NEC House, Birmingham and Newport are planned to start in 2008. Number of operational Hotels: 1 Under construction: 4 Some potential for Lincolnshire 11.16 Cedar Court Hotels The company purchased the former Hilton in Huddersfield and also the St Pierre in Wakefield in 2001. The former Hanover Hotel in Bradford was purchased in 2003. They are currently planning a 107 bedroom hotel to be built at the former railway headquarters at Station Rise in York. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 92 J0895 Lincolnshire Hotel Development Strategy Number of operational Hotels: 4 Under construction: 1 Some potential for Lincolnshire 11.17 Centre Parcs UK Group The company was purchased by Arbor in 2003. They have 4 major resorts in the UK. The Cheltenham Spa was purchased in 2004. They submitted planning for a new resort near Woburn. This was initially refused but has now been approved by the Local Government minister. Number of operational Hotels: 4 Under construction: 1 Some potential for Lincolnshire 11.18 Centre Island Hotels The company which was McLean Group reopened the Holiday Inn Garden Court at Ashford in 2003 as a Holiday Inn. They operate Crowne Plaza, Holiday Inns and Express by Holiday Inns. They are operating the new Crowne Plaza which has just opened in Manchester. They are building an Express by Holiday Inn also in Manchester which is due to open in early 2009. Number of operational Hotels: 10 Under construction: 1 Some potential for Lincolnshire 11.19 Chardon Management Ltd The company operate 4 hotels in Scotland and through Stardon UK they operate 7 former Hilton Hotels. A new Express By Holiday Inn has opened in Edinburgh. They are building in conjunction with Bluebird Holdings a Holiday Inn at Stevenage and work will start soon on an Express By Holiday Inn at Leeds. Number of operational Hotels: 14 Under construction: 1 Some potential for Lincolnshire Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 93 J0895 Lincolnshire Hotel Development Strategy 11.20 City Inn Ltd The company opened a new hotel in Manchester in 2007. A 330 bedroom hotel is under construction in Leeds due to open in 2009. A 600 bedroom hotel is planned adjacent to the Tower of London and a third new hotel is a possibility for Edinburgh. Number of operational Hotels: 5 Under construction: 3 Limited potential for Lincolnshire – preference for larger properties. 11.21 Clayton Hotels Ltd The company which is a sister company of Clayton Homes has plans to create a chain of Country House hotels. The first purchase was Gwrych Castle in Abergele and planning is being sought to convert this into a 5 star 90 bedroom hotel. Number of operational Hotels: 1 Under construction: 1 Limited potential for Lincolnshire 11.22 Corinthia Hotels International This company will be running the revamped Metropole hotel near Trafalgar Square for International Hotel Investments which is another Maltese company. Corinthia will also be managing the Ramada Encore being built by Vermont Developments in Liverpool. Number of operational Hotels: 2 Under construction: 2 Limited potential for Lincolnshire 11.23 Crerar Hotels Ltd The company was known as North British Trust Group. In 2006 they purchased the Scotlands at Pitlochry. They also own the Glencoe hotel at Glencoe and this is being converted into an 80 bedroom hotel due to open in 2009. They took over 13 former Swallow hotels belonging to REIT Asset Management and are managing these. They are also managing 5 hotels for PRUPIM. They purchased the Craiglynne hotel in Grantown on Spey in 2007. Number of operational Hotels: 9 Limited potential for Lincolnshire Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 94 J0895 Lincolnshire Hotel Development Strategy 11.24 Carlson (Park Plaza brand) Have invested in Cardiff, London, Leeds, Cardiff and Nottingham. Looking at further development in large city areas and at developing the Park Plaza Club brand in 'second city' locations. These are modular constructions - 96 & 52 room models with large rooms. There are currently 9 Park Plaza Hotels in the UK. Number of operational Hotels: 9 Under construction: 1 Lincolnshire potential: Possible candidates for Lincoln. 11.25 Cendant – Wyndham Hotels The second biggest hotel group in the world by room number with about 6,400 hotels under its brands worldwide. It focuses on franchising. The brands it franchises under include: • Days Inn (a.k.a. Days Hotels). • Ramada. The Jarvis group operates the franchise in the UK. • Ramada Encore. • Wingate Inn – The group was launched in the USA 1996 and is now expanding internationally, with 12 properties planned. The hotels are mid-price, new construction only. • Achieved significant expansion in early 2000‘s with re-branding of former Jarvis hotels properties as Ramada hotels • There are currently 112 Cendant hotels across the UK. • Lincolnshire potential: New development recently has been limited – unlikely to be a real prospect. There is strong interest from BDL (a developer / operator of budget and mid-scale hotels) in pushing the Ramada Encore brand. 11.26 City Inn Hotels in London, Bristol, Birmingham, Manchester & Glasgow. New 300 room developments underway in Leeds (opens 2009) and by Tower of London (2010). Whilst the Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 95 J0895 Lincolnshire Hotel Development Strategy name implies a limited service product, room rates range from £100 to £200 per night and the group was the winner of Best Business Hotel brand 2007. Number of operational Hotels: 5 Under construction: 3 Lincolnshire potential: Would be an excellent addition to the range in Lincoln, but it is more likely that they would see Lincoln as being too small and focus on larger regional cities as a priority. 11.27 Dakota Hotels Smart Malmaison style hotels. Have properties in Glasgow, near Edinburgh and in Farnborough. Number of operational Hotels: 3 Under construction: Lincolnshire potential: Although an excellent brand, it is unlikely that Lincolnshire would feature on their priorities. 11.28 Delancey Estates The company is developing a 120 bedroom hotel at Brooklands Circuit near Weybridge. In conjunction with Hilwood Resorts they purchased the Bovey Castle in Devon in 2006. 11.29 Doubletree By Hilton Hilton Hotel Corporation is introducing this brand to the UK. This is the ―conversion‖ brand of Hilton. The first has opened at Cambridge. The Dunblaine Hydro which is being converted to Doubletree are owned by Ability Group. The former Patio in Aberdeen is also being converted to this brand. Number of operational Hotels: 3 Under construction: Lincolnshire potential: Possible re-branding opportunities for existing hotels. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 96 J0895 Lincolnshire Hotel Development Strategy 11.30 De Vere: Village Hotels The company is currently concentrating on the development of Village leisure hotels. Currently 20 hotels, most in ―secondary‖ locations outside of town centres. Have a distinct place in the market because of their substantial leisure facilities. They believe that this product is comparable to a 4 star standard. Number of operational Hotels: 20 Under construction: 3 Lincolnshire potential: Would be a good fit in Lincoln. 11.31 Eclipse Hotels The company has recently opened new hotels at Bristol & Cardiff Airports in 2007. An Easyhotel opened in Luton in 2008 and another will open at Heathrow in October 2008. A Holiday Inn is under construction at Bristol due to open in July 2009. Number of operational Hotels: 5 Under construction: 2 Limited potential for Lincolnshire 11.32 Express By Holiday Inn Budget hotels part of Intercontinental Hotels Group. Most of the hotels are franchised and 7 individual groups operate hotels themselves. These are BDL Hotels Ltd, Chardon Management, Kew Green Hotels, Meridien Leisure, Morethanhotels, Somerton Hotels and Splendid Hotels. New hotels opened at Cheltenham and Folkestone in 2008 and others are under construction at Ayr, Dundee & Witney. Number of operational Hotels: 49 Under construction: 5 Potential for Lincolnshire One opening soon in Lincoln – possible future potential for sites like Skegness and Gainsborough. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 97 J0895 Lincolnshire Hotel Development Strategy 11.33 Fitzpatrick Hotel Group This company operate hotels in New York and Ireland. They have plans to operate a new hotel at Waterloo Place in Edinburgh. Number of operational Hotels: 0 Under construction: 1 Limited potential for Lincolnshire 11.34 Folio Hotels Has a UK portfolio of 36 hotels and has recently acquired two new properties in Manchester (the 85-room Princess on Portland Hotel in Manchester city centre) and in Liverpool (Heywoods Building on Brunswick Street, which it plans to covert to a 36 room hotel at a cost of £3.5m). Both hotels will be developed into four star, town house style properties. Number of operational Hotels: 36 Under construction: 2 Lincolnshire potential: Not really developers – more owner operator model – might like to acquire an existing property. 11.35 Four Pillar Hotels All 6 hotels are 4 & 3* AA rated. They were taken over in 2007 by RREEF the real estate fund management arm of Deutsche Bank. They opened a new hotel at Cotswold Water Park near Cirencester in 2007 and are also planning a further new hotel near Didcot in Oxfordshire due to start in 2008. Number of operational Hotels: 6 Under construction: 1 Lincolnshire potential: • Possible for Stamford and Lincoln Judges Lodging. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 98 J0895 Lincolnshire Hotel Development Strategy 11.36 Future Inns Canada This Canadian company has plans to develop more 4 star hotels. Cardiff & Plymouth have opened and a further hotel is under construction in Bristol due to open in February 2009. They are considering building a fourth hotel in Scotland. Number of operational Hotels: 2 Under construction: 1 Limited potential for Lincolnshire 11.37 G B Building Solutions Ltd • The company is a subsidiary of Gleeson who in conjunction with a company called Oxford GB Ltd plan to develop 15 mid market hotels throughout the UK. The first a Hilton Garden Inn opened at Luton in 2008. This will be followed by Leeds which is due to start in 2008. They are also developing a Staybridge Apart-hotel in Newcastle Upon Tyne and starting to build an hotel on the seafront at Margate. Number of operational Hotels: 1 Under construction: 3 Limited potential for Lincolnshire 11.38 Grange Hotels Ltd • The company has a total of 14 hotels. A new hotel in Bracknell was opened in 2001. The Blooms hotel was purchased in 2002. Work has started on a 252 bedroom hotel near St Pauls in London and this is due for completion in early 2009. • Number of operational Hotels: 14 • Under construction: 1 Some potential for Lincolnshire 11.39 Guestinvest • The company operate buy to let schemes. The Nest will open in Queens Gardens in Paddington London in late 2008. They purchased the former Whitbread Brewery in London in 2007 and this is being converted to a buy to let hotel due to open in 2009. They have an arrangement with Blakes hotel in London to convert this to a buy to let hotel and have arranged a joint venture with the Bank of Scotland which will provide similar hotels in a number of leading cities. The first two of these projects will be in London. One near Hyde Park and the other in Notting Hill. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 99 J0895 Lincolnshire Hotel Development Strategy • Number of operational Hotels: 6 • Under construction: 4 No potential for Lincolnshire • This company recently entered into receivership. 11.40 Heritage Group • Heritage London & Hanover UK Ltd are developing hotels for Purple Hotels formerly Sleep Inns. The first opened at Braintree in 2007 and a second opened at Glasgow Airport in 2008. They are also developing 4 Park Inns for Rezidor. Hotels are under construction at Peterborough and Rotherham. • Hotels: 10 Some potential for Lincolnshire 11.41 Hilton Hotels. The company took over Stakis Hotels in 2000. They were taken over by US private equity group Blackstone in 2007. The Hilton London Paddington & Hilton London Euston are owned by London Plaza Hotels. They will be operating the new hotel now being built at Wembley Stadium and due to open in 2010. They will also operate the 98 bedroom hotel under construction near the Majedski Stadium in Reading which is due to open in 2009. They are introducing 3 new brands to the UK. These are Doubletree by Hilton, Hampton by Hilton and Hilton Garden Inn. 3 Hilton Garden Inns are being developed by G B Building Solutions Ltd. 25 Hampton by Hilton are to be developed by Somerston Hotels. Shiva Hotels Ltd will develop 15 hotels including Doubletree by Hilton, Hilton Garden Inn and Hampton by Hilton. • Number of operational Hotels: 70 Under construction:2 Lincolnshire potential: Lincoln and possibly one or two other locations could be suitable for Hampton Inn. They are pushing this brand hard and would certainly be interested in any viable opportunities. Their interest would be limited to operator and/or franchisor but they have quite a fan club of developers. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 100 J0895 Lincolnshire Hotel Development Strategy 11.42 Intercontinental Hotels The company, previously Bass and then called Six Continents, operate Express by Holiday Inn, Holiday Inn, Crowne Plaza & Intercontinental. 2 new Staybridge Suite Hotels are under construction. One in London is being built by Splendid Hotels and one in Brentford by BDL Hotels. These will be followed by 2 new hotels in Birmingham & Newcastle-Upon- Tyne in conjunction with Trinity Hotels. The Company are hoping to expand to over 20 of these hotels in the next four years. 11 Hotels are operated by Queens Moat House Hotels under a franchise agreement. A number of the hotels are owned by small groups. These are Centre Island Hotels, Chardon Management, Eclipse Hotels, Firoka Group, Pedersen Leisure, QN Hotels, Quinn Hotels, Somerston Hotels and Splendid Hotel Group. Lincolnshire potential: Holiday Inn Express to open shortly in Lincoln. Crowne Plaza could be possible for Lincoln but unlikely. Staybridge is the brand that they are pushing along with Express but they are struggling for opportunities. It could work in Lincoln given the Siemens and RAF presence. 11.43 Jarvis Hotels Plc The company operate 9 former Hilton Hotels for Norwich Union. They have a marketing arrangement with Ramada. The last opening a new 200 bedroom hotel on the site of the former Ramada Heathrow and this will open in October 2008. • Number of operational Hotels: 42 • Under construction: Limited potential for Lincolnshire • Very little development of the brand since the initial agreement. Properties have been sold on a sale & leaseback arrangement. 11.44 Jumeirah International This Dubai based company took over in 2002 the management of two former Hyatt hotels in London. They will be operating a new 262 bedroom hotel in the Beetham Tower at Blackfriars in London now under construction and due to open in 2010. • Number of operational Hotels: 2 • Under construction: 1 No potential for Lincolnshire Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 101 J0895 Lincolnshire Hotel Development Strategy 11.45 Jurys Doyle Multi-national company which originated from the merger of Jury‘s Hotels and PV Doyle Hotels – two Irish hotel companies. The company is concentrating on pushing its Jurys Inn brand – premium budget positioning, but development has slowed recently since the company was acquired from the original family owners. • Number of operational Hotels: 17 • Under construction: 6 Lincolnshire potential: Possible interest for the right opportunity. 11.46 Kennedy Group The company operate Culzean Properties as a joint venture with CUSP. They have the Northern Ireland franchise from Intercontinental Hotels to build Express by Holiday Inns in the province. The first was opened in 2007 in Antrim and this is operated by BDL Hotels. They have started to build a Ramada Encore in Belfast. They have established a joint venture company with BDL Hotels called Ramcore Ltd. So far they have secured sites in Birmingham, Glasgow, Hemel Hempstead, Ipswich and Warrington and are aiming for 40 in total. • Number of operational Hotels: 2 • Under construction: 2 Significant potential for Lincolnshire 11.47 Kew Green Hotels Ltd The company which is owned by Moorfield took over in 2005 11 Courtyard by Marriott hotels, these were rebranded as Holiday Inn in May 2007. A further Holiday Inn was opened at Norwich in 2007. A Courtyard by Marriott is under construction at Gatwick which is due to open in early 2009. They have just taken over the former Marriott in Liverpool which has been renamed as a Crowne Plaza. • Number of operational Hotels: 19 • Under construction: 1 Significant potential for Lincolnshire Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 102 J0895 Lincolnshire Hotel Development Strategy • Company recently completed a re-financing and could be ready to start expanding again. 11.48 Legacy Hotels The group purchased in 2007 the Quality Snowdonia now renamed the Royal Victoria. They purchased 3 hotels from Corus Hotels in 2006. They own 2 other hotels which were managed by Macdonald Hotels. They took over the management of 3 former Swallow Hotels in 2007. They manage 2 hotels for Lloyds Hotel Group and 2 hotels for Cosmopolitan Group. They will be operating 2 new hotels for Prestigious Retirement Villages which are to be built in Lytham St Annes and Lancaster both due to open in late 2008. They took over the management of the Botleigh Grange hotel at Southampton in 2008. • Number of operational Hotels: 17 Limited potential for Lincolnshire 11.49 MacDonald Hotels and Resorts The company purchased Heritage Hotels in 2001. An hotel was opened at Whitchurch in Shropshire in 2006. Others were opened in 2007 in Manchester and Tarporley. They will be managing the new hotel under construction at Salford City Reds Rugby Club. They have entered into a partnership with the Royal Garden hotel in Kensington, London. 23 Hotels previously managed for Moorfield Real Estate Fund were transferred to Accors Mercure in 2007. They have announced plans to expand their presence in London. • Number of operational Hotels: 46 • Under construction: 1 Lincolnshire potential: Company is heavily involved with HBOS and as such funding for new developments would be questionable. 11.50 Malmaison/Hotel du Vin Up market ―boutique‖ chain that now has units in Belfast, Birmingham, Edinburgh, Glasgow, Leeds, Liverpool, London, Newcastle, Oxford, Reading. Hotel du Vin properties in Bristol, Winchester and Brighton. The company was purchased by Marylebone Warwick Balfour in 2002. Liverpool and Reading were opened in 2007. They purchased the Queens hotel at Aberdeen and it will Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 103 J0895 Lincolnshire Hotel Development Strategy reopen with 82 bedrooms in late 2008. They plan a further hotel in London probably at Libertys in London and they are also considering Sheffield. • Number of operational Hotels: 11 • Under construction: 1 Lincolnshire potential: Hotel du Vin seems to have a great brand fit with Lincolnshire Uphill and, in particular, the Judges Lodgings/White Hart Car Park site, and also with Stamford. The company is currently for sale and while this process is ongoing it is unlikely that much attention will be given to brand expansion. 11.51 Marriott International The company took over the UK operations of Whitbread Marriott. The Marriott West India Dock is owned by the Yianis Group. In 2007 they sold 47 hotels to Quinlan Private on a sale/Leaseback. Marriott have plans to expand their Courtyard hotels with joint ventures. A new Marriott is due to open at the Rugby Football Ground at Twickenham in late 2008 and a Marriott Renaissance is being planned for Birmingham. They will also operate the 254 bedroom hotel being built at St Pancras in London and which is due to open in 2010. They operate the Marriott Victoria & Albert in Manchester and the Marriott West India Dock both of which are owned by the Yianis Group. • Number of operational Hotels: 55 • Under construction: 3 Lincolnshire potential: Any interest would need to be developer led. 11.52 Marstons Inns & Taverns The company was previously Pathfinder Pubs took over the operation of the hotels previously operated by Wizard Inns and Wolverhapton & Dudley. They took over Eldridge Pope in 2008. They plan to build some dozen new pubs with 40 room accommodation. The first two are planned for Weybridge in Cornwall and Telford in Shropshire. • Number of operational Hotels: 55 • Under construction: 3 Limited potential for Lincolnshire Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 104 J0895 Lincolnshire Hotel Development Strategy 11.53 Maybourne Group The company is owned by Quinlan Private. These hotels were the 3 remaining in the Savoy Group after the sale of the Savoy hotel itself in 2005. Claridges is due to have a 40 bedroom extension and The Berkeley 27 bedrooms added • Number of operational Hotels: 3 No potential for Lincolnshire 11.54 McAleer & Rushe Group This design & construction company carried out a great deal of work for Jurys Inns. Three sites at present are being planned are in Gateshead, Portsmouth and Leicester Square London which will be operated as a W hotel by Starwood. Limited potential for Lincolnshire 11.55 Menzies Hotels Operators of 17 hotels, mainly older properties. Lincolnshire potential: Not a strong brand identity. Original founders sold out to aAim who have since down sold the portfolio – little possibility of direct investment and probably not a strong enough brand to be called in as an operator. 11.56 Millennium Copthorne: Copthorne was purchased by Singapore based CDL Hotels in 1995. They took over the management of the 2 hotels at Stamford Bridge owned by Chelsea Village in 2006. A 200 bedroom hotel is now under construction at the Marina in Southampton. They will be operating the new hotel due to be built at Sheffield United Football club in Bramall Lane. They will also be operating the new hotel planned by Arena Leisure for the racecourse at Doncaster. • Number of operational Hotels: 19 • Under construction: 3 Lincolnshire potential: Would be a long shot at best. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 105 J0895 Lincolnshire Hotel Development Strategy 11.57 Morethanhotels The company was formerly Oriel Hotels and operate 8 Express By Holiday Inns. They took over Foremost Hotels Ltd in 2005. They were taken over by JER Partners in 2007. 2 new hotels are planned for Birmingham NEC and they are operating a new hotel which opened in Hull in 2008. They purchased the Express By Holiday Inn in Stevenage in 2008 • Number of operational Hotels: 12 Significant potential for Lincolnshire 11.58 Niche Hotels Ltd The company opened a 64 bedroom hotel in Cardiff in 2005. 22 bedrooms were added to the Wyck Hill House Hotel in 2007. The Langley Park is under construction in London and will be opened in early 2009. • Number of operational Hotels: 3 • Under construction: 1 Limited potential for Lincolnshire 11.59 Pantin Hotels The company has just opened their first hotel in Leeds. They also have plans for a second hotel also in Leeds which will open in 2010. • Number of operational Hotels: 2 • Under construction: 1 Limited potential for Lincolnshire 11.60 Park Inn The company is part of Rezidor SAS. They took over the operation of 9 former Queens Moat Hotels owned by Jefferson Hotel LLP in 2006. The Moathouse in York was converted to a Park Inn in 2006. They have plans to create a number of new Park Inns. Edinburgh, Peterborough, Grimsby and Rotherham are being built by Heritage Group and are listed under that company. Belfast, Glasgow East Kilbride, Manchester Cheetham Hill, Manchester Old Trafford, Glasgow Springfield Quay, Aberdeen, Newry and Sawley near Long Eaton are under construction and Canterbury is due to be started soon. They operate the Park Inn at St Helens, and for former Bonnington in London for W G Mitchell. Also the Park Inn at Heathrow owned by the Yianis Group. • Number of operational Hotels: 19 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 106 J0895 Lincolnshire Hotel Development Strategy • Under construction: 9 Significant potential for Lincolnshire 11.61 Peel Holdings Ltd This is a large property development company which owns four airports. Currently they are developing new hotels at John Lennon Airport in Liverpool, Robin Hood Airport Doncaster and Gloucester Quays in conjunction with British Waterways. Limited potential for Lincolnshire 11.62 Prem Group The company has a franchise to develop Cendant Hotels in Ireland and the UK. A hotel opened in Sheffield in 2007. 3 Hotels probably Days Inns are planned for Edinburgh, Leeds and Manchester. They purchased the Metro near Birmingham in 2006 and this has been converted to a Ramada. They operate 6 Premier Serviced Apartments in the United Kingdom. • Under construction: 3 Limited potential for Lincolnshire 11.63 Premier Inn Part of Whitbread Hotel Co the company has changed its name from Premier Travel Inns. Roadchef Lodges were incorporated in 2001. Premier Lodge was amalgamated in 2005. They have announced plans to build 6 new Premier Inn hotels in London. They have purchased 3 hotels from the Real Hotel Company. • Number of operational Hotels: c. 500 • Under construction: c. 15 Lincolnshire potential: A strong candidate for any budget style opportunities countywide. 11.64 Principal Hayley Hotels Operate 7 hotels in the four star range, mainly larger, older properties, including properties in Edinburgh, York, Leeds, Selsdon Park, Shropshire, Cardiff & London. Backed by private equity firm, Permira who have ambitions to make the company a £1bn Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 107 J0895 Lincolnshire Hotel Development Strategy enterprise. Acquired the Hayley Conference Centre group and are now major players in the provincial conference centre market. • Number of operational Hotels: 19 Lincolnshire potential: Opportunity based. Business model is more geared to acquisition of existing cash generating businesses than development but could be an end-buyer for a suitable development – particularly if there was a strong conference / training centre angle. 11.65 Q Hotels 19 hotels in 4 star market, all of them heritage properties. Mainly owned by private equity company Alchemy Partners. The portfolio includes the Midland in Manchester, the Queens in Leeds, Chesford Grange in Warwickshire and the Park Royal in Warrington. It added that it is set to continue its rapid growth over the next 12 months. • Number of operational Hotels: 21 Lincolnshire potential: Opportunity led but a possibility. 11.66 Radisson Edwardian The Mayfair Continental was purchased in 2003 and has been extensively refurbished. A new hotel was opened at New Providence Wharf in London in 2007. Syon Park will open in 2009. A further new hotel is planned for Coventry. • Number of operational Hotels: 13 • Under construction: 2 Lincolnshire potential: Unlikely. Their hotels are too large and up market to fill either of the gaps in Lincoln for mid market full service and branded townhouse style. 11.67 Radisson SAS A Radisson SAS opened in St Helier in 2007. Durham and Bristol are due to open in early 2009. Cardiff is also being built and will open later in 2009. Others will be started soon at Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 108 J0895 Lincolnshire Hotel Development Strategy East Midlands Airport, Rotherham and Brighton. They intended to develop a new brand Radisson Missoni in partnership with Italian fashion house Missoni. The first of these is now under construction at the former Scottish & Newcastle Brewery in Edinburgh. • Number of operational Hotels: 18 • Under construction: 7 Limited potential for Lincolnshire 11.68 Real Hotel Company Has 11 hotels under the Purple hotels brand (it changed them from Sleep Inn in February 2008). Sites include Baldock, Birmingham, Cambridge, Derby, Doncaster, London, Peterborough, Shrewsbury and Tewkesbury and new developments at Stansted and Glasgow Airport. The hotels are positioned just above the lodge section in the £55 - £85 per night range in the regions. • Number of operational Hotels: 11 (Under Purple Brand) Lincolnshire potential: Possible for budget hotel sites in the county. 11.69 Regency Hotel Group This Irish company own 5 hotels in Ireland and 2 in the United Kingdom. They purchased the Gillette office headquarters in Isleworth in 2006. Initial plans to build a 505 bedroom 5 star hotel on the site were rejected in early 2007 but it is hoped that the problems have been overcome and that building will start in early 2008 Number of operational Hotels: 4 Limited potential for Lincolnshire 11.70 Rezidor/Carlson (Radisson SAS) The Rezidor Hotel Group currently has about 300 hotels under management. It manages selected Carlson brands in Europe, the Middle East and Africa: Radisson, Park Inn, Regent and Country Inn. www.rezidor.com. Radisson SAS Hotels & Resorts is part of the Rezidor Hotel Group. It currently operates about 170 hotels in Europe, the Middle East and Africa. It has recently opened new hotels in St Helier, Durham and Cardiff. Operating Radisson SAS: 24 (2 more opening in the near future) Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 109 J0895 Lincolnshire Hotel Development Strategy Park Inn: 21 Country Inn: 1 Lincolnshire potential: Would probably also not see enough market in Lincoln, but is an excellent brand and would be a great addition to the Lincoln offer. Worth trying to interest them if there is a good scheme. 11.71 Shiva Hotels This India based company has no official Head Office in London. However they can be reached via the Ramada in Docklands which they own. They purchased the Monkbar hotel in York in 2008. They have concluded an agreement with Hilton Hotels Corporation to develop 15 new hotels in the UK. These will be Hilton, Hilton Garden Inn and Hampton by Hilton. The first 4 sites to be developed will be near Heathrow terminal 5, Derby and 2 sites in Leeds. • Number of operational Hotels: 4 • Under construction: 4 Significant potential for Lincolnshire 11.72 Sleeperz Hotels Ltd The company are developing new hotels on land belonging to Network Rail. The next opening is at Cardiff in late 2008. This will be followed by Newcastle-Upon-Tyne & Manchester in 2009. • Number of operational Hotels: 0 • Under construction: 1 No potential for Lincolnshire 11.73 Somerston Hotels Ltd The company which was Stannifer Hotels operate Express By Holiday Inns, Holiday Inns and Ramada. They purchased 13 Express By Holiday Inns from BDL Hotel Group in 2005. They have a development agreement with Hilton Hotels Corporation to develop 25 new Hilton Hampton hotels in the UK within the next 5 years. They are building an Express By Holiday Inn at Lincoln which is due to open in December 2008. • Number of operational Hotels: 32 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 110 J0895 Lincolnshire Hotel Development Strategy • Under construction: 1 Some potential for Lincolnshire 11.74 Splendid Hotel Group The company operate Holiday Inn, Express by Holiday Inn and Comfort Inn. They have just signed an agreement with Easyhotel to develop 10 new hotels in the UK. They already operate the Easyhotel in Victoria, London. They will be operating a new Intercontinental Staybridge Suite which is being built at Suffolk St on Bankside in London. Another hotel is being developed in St Albans. • Number of operational Hotels: 15 (12 Branded) Some potential for Lincolnshire 11.75 Starboard Hotels The company has just opened an Express by Holiday Inn in Burnley. This will be followed by a 200 bedroom Holiday Inn Express at Edgbaston in Birmingham. A Days Inn is planned for Wetherby and another Express by Holiday Inn for Gateshead. • Number of operational Hotels: 1 • Under construction: 3 Limited potential for Lincolnshire 11.76 Starwood Hotels and Resorts US based company owned by Starwood Capital. They operate the Sheraton and Westin brands in the UK. Starwood Capital own Campanile & Le Meridien. They will be operating a new Westin hotel to be built by Ballymore Properties at the Snowhill station site in Birmingham. They are introducing their W Hotels Brand into the UK. The first two will be at the former Swiss Centre in London currently being developed by McAleer & Rushe and a West Hotels site in Manchester. • Number of operational Hotels: 9 • Under construction: 2 Lincolnshire potential: Unlikely. Small possibility of them being a candidate for a golf resort development at Gainsbourgh or Woodhall Spa. Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 111 J0895 Lincolnshire Hotel Development Strategy 11.77 Thistle Hotels Operate 35 hotels in the 3-4 star market, mainly in city centres. The ownership structure has become very messy following a string of ownership changes and complex sale and leaseback arrangements. These have effectively killed further development of the brand. • Number of operational Hotels: 35 • Under construction: Lincolnshire potential: Poor and weakening brand with little or no potential for further development. 11.78 Travelodge The company was bought in 2007 by Dubai International Capital Group. They have plans to develop 40 new lodges in the next 15 months. They have purchased 6 hotels from the Menzies Group. Number of operational Hotels: over 300 Lincolnshire potential: A strong candidate for any budget opportunities countywide. 11.79 Urban Splash The company has just reopened the Midland hotel in Morecambe. They have submitted plans for a new 100 bedroom hotel on the former Littlewoods site at Edge Lane in Liverpool and also plan to develop 2 new hotels at the former Pleasureland site in Southport. • Number of operational Hotels: 1 Under construction: 2 Limited potential for Lincolnshire 11.80 Von Essen Hotels Luxury Family Hotels was taken over in 2006. They have regularly purchased new hotels during the past five years. The latest are the Seaham Hall hotel and the Samling. They also purchased the Battersea Heliport where work has started on a 70 bedroom boutique hotel. They purchased the Amberley Castle hotel near Arundel in 2007 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 112 J0895 Lincolnshire Hotel Development Strategy • Number of operational Hotels: 28 Under construction: 1 Limited potential for Lincolnshire 11.81 West Hotels The company is part of West Properties UK Ltd. They have plans to develop 11 hotels in the UK. Two are planned for Manchester on Deansgate and Princess St. Two in Leeds in Kirkstall Rd and Bridge St and one on Christchurch Way near the Blackwall tunnel in London Under construction: 5 Limited potential for Lincolnshire 11.82 Willow Street Hotels The company was originally Quest Hotels. They have plans to build 6 new hotels in the next few years. They are considering operating a new hotel on a site owned by Argent in the Northern Quarter of Manchester. • Number of operational Hotels: 1 Limited potential for Lincolnshire 11.83 Yianis Group The company owns the Four Seasons hotel at Canary Wharf and purchased the Marriott at West India Quay in 2006. They have just bought the Park Inn at Heathrow and the Marriott Victoria & Albert in Manchester. They are also involved in the development of the former Palace Hotel in Southend-On-Sea which is now under construction. • Number of operational Hotels: 4 Under construction: 1 Limited potential for Lincolnshire Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 113 J0895 Lincolnshire Hotel Development Strategy 12. Space Requirements for Hotels Figure 53 gives an indication of the different sizes of room in different branded hotels. Figure 53: Principal UK Hotel Brand Bedroom Size Comparisons 2-3 star 3-4 star 4-5 star 7-10 m2 12 m2 18 m2 22 m2 24-26 m2 28-32 m2 easyHotel* Etap Ibis Hampton by Hilton Crowne Plaza** Hilton** nitenite Yotel* Travelodge* Express by Holiday Inn Hilton Garden Inn Inter-Continental** Park Inn Holiday Inn** Marriott** Premier Inn Courtyard by Marriott** Sofitel** Purple Inn Novotel** Purple Hotel Ramada Encore * Brands may have other room sizes **Brands may have suites and larger configurations Source: Dexter Moren Associates (2008) Each of the major hotel brand operators provide developers with a manual that specifies exactly how they would like the hotel to be built and finished if they are to operate it. Figure 54 and Figure 55 show the required area schedule for a 4 story 109 room Hampton by Hilton, a budget hotel which requires 3,564 m2 of internal area. It needs 119 parking spaces and 5,159 m2 site area (0.52 hectares, 1.3 acres). Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 114 J0895 Lincolnshire Hotel Development Strategy Figure 54: Hampton by Hilton – Internal Area Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 115 J0895 Lincolnshire Hotel Development Strategy Figure 55: Hampton by Hilton – External Area Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 116 J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Locum Consulting Page 117 Locum Consulting J0895/Matt Hyslop/12/4/11/68d612f4-4c4a-4e58-969b-fe1e5f100fe1.doc Page 117