WINCHESTER HOTEL MARKET FACT FILE

Transcription

1 WINCHESTER HOTEL MARKET FACT FILE

2 INTRODUCTION The Winchester Htel Market Fact File has been cmpiled t assist htel cmpanies, develpers and investrs in assessing htel investment pprtunities in Winchester. It prvides the latest available infrmatin n: The current htel supply in Winchester; Recent htel develpment; Current htel develpment prpsals; Recent htel perfrmance ( ) The key markets fr htel accmmdatin in Winchester; The prspects fr grwth in demand fr htel accmmdatin and what will drive this; The ptential fr htel develpment in the city in the next 5 years. All f the data included in the Fact File is drawn frm the Hampshire Htel Trends Survey undertaken by cnsultants Htel Slutins between January and April Fr further infrmatin and cntacts r t discuss yur requirements cntact: Andrew Bateman Turism Manager Ecnmy, Transprt & Envirnment Hampshire Cunty Cuncil EII Curt West Winchester SO23 8UD Tel: andrew.bateman@hants.gv.uk Winchester Htel Market Fact File 1

3 WINCHESTER HOTEL SUPPLY Current Htel Supply Winchester is currently served by 12 htels, with a ttal f 744 letting bedrms. 4 star htels accunt fr ver three quarters f this supply. The Lainstn Huse 5 star cuntry huse htel is lcated t the west f Winchester at Sparshlt. Winchester is the lcatin f the first Htel du Vin butique htel in the UK and als has a small butique inn. There is nly ne small budget htel in the vicinity f Winchester the Days Inn n the Winchester mtrway service area n the M3. This Winchester htel supply is split between Winchester City Centre and the areas immediately surrunding the city. The City Centre supply cmprises 7 htels with 321 letting bedrms. There are a further 5 htels utside the city, including Lainstn Huse, the 4 star Nrtn Park Q Htel at Suttn Sctney t the nrth f Winchester and the Hliday Inn Winchester at Mrn Hill t the east f the city. CURRENT HOTEL SUPPLY WINCHESTER JULY 2013 Standard Htels Rms % f Rms 5 star Butique star star Budget star Inn Ttal Htels WINCHESTER HOTEL SUPPLY JULY 2013 Htel Standard/Type Bedrms Winchester Lainstn Huse 5 star 50 Htel du Vin Butique 24 N 5 Bridge Street Butique Inn 6 Nrtn Park (Q Htels) 4 star 175 Mercure Winchester Wessex 4 star 92 The Winchester 4 star 96 Hliday Inn Winchester 4 star 141 Winchester Ryal (Akkern Htels) 4 star 81 Harestck Ldge 3 star 17 Days Inn Winchester M3 Budget 40 Wykeham Arms (Fuller s Htels & Inns) 4 star Inn 14 King s Head, Hursley 4 star Inn 8 Winchester Htel Market Fact File 2

4 WINCHESTER HOTEL SUPPLY Changes in Supply New Htels The new Hliday Inn Winchester pened in 2010, with 141 bedrms. The Ideal Cllectin pened N5 Bridge Street in 2011 as a butique inn with 6 bedrms. Investment in Existing Htels The Winchester Ryal upgraded t 4 stars in April 2013 fllwing a cmplete refurbishment and added 6 new bedrms. The htel was acquired by Akkern Htels in 2010, when it tk ver Frestdale Htels. Lainstn Huse upgraded t 5 stars in 2012 and pened a new gym and falcnry centre. Nrtn Park refurbished its spa in The Winchester added a spa treatment centre in Winchester Htel Market Fact File 3

5 WINCHESTER HOTEL SUPPLY Prpsed Htel Develpment Htels Under Cnstructin There are n htels currently under cnstructin in Winchester. Prpsed Htels Premier Inn has been granted planning permissin fr the develpment f a 101- bedrm budget htel n the site f the Calednia Huse ffice building in Winnall. Winchester is als a target lcatin fr Traveldge. Planned Develpment f Existing Htels Knwn plans fr the develpment f existing htels in Winchester are summarised in the table belw. WINCHESTER PLANNED DEVELOPMENT OF EXISTING HOTELS Htel Standard New Prpsed Develpment Rms Hliday Inn Winchester 4 star 36 Currently applying fr planning permissin fr extensin t prvide an additinal 36 bedrms, dry leisure facilities and spa treatment rms and additinal meeting space Lainstn Htel, Sparshlt 4 star Permissin granted 2011 fr the develpment r a spa with treatment and relaxatin rms Kings Head Hursley 4 star 2 Permissin granted fr extensin t deliver an additinal 2 butique bedrms Harestck Ldge 3 star (17) There is a current applicatin t cnvert the Harestck Ldge Htel t a day nursery Winchester Htel Market Fact File 4

6 WINCHESTER HOTEL PERFORMANCE & MARKETS Occupancy, Achieved Rm Rates and Revpar Average annual rm ccupancies, achieved rm rates and revpar figures fr Winchester 3/4 star htels fr 2010, 2011 and 2012 are summarised in the table verleaf. 3/4 star htel ccupancies, achieved rm rates and revpar figures drpped sharply in 2010 fllwing the pening f the new Hliday Inn at Mrn Hill. While they have steadily imprved in 2011 and 2012 they are still sme way belw the cunty and natinal averages. Patterns f Demand Estimated average weekday and weekend ccupancies fr Winchester 3/4 star htels in 2012 are summarised in the table belw. WINCHESTER 3/4 STAR - WEEKDAY/ WEEKEND OCCUPANCIES 2012 Typical Rm Occupancy % Mn-Thurs Friday Saturday Sunday Surce: Hampshire Htel Trends , Htel Slutins April 2013 Friday and Saturday ccupancies are strng fr Winchester 3/4 star htels, particularly between April and Octber, when mst htels are usually fully bked and turning business away. Friday and Saturday ccupancies are lwer in the winter hwever and weekend denials much less cmmn. Sunday night ccupancies are relatively lw fr Winchester 3/4 star htels, althugh can be higher in the summer fr sme htels. Tuesday and Wednesday night ccupancies are generally strng fr Winchester 3/4 star htels, particularly during the summer mnths and peak crprate mnths in the spring and autumn, when sme htels frequently fill and turn business away n these nights. Mnday and Thursday ccupancies are much lwer hwever, dwn t 45-50% fr sme htels. Midweek ccupancies are generally lwer in the winter mnths and dip in August fr sme htels. Winchester Htel Market Fact File 5

7 WINCHESTER HOTEL PERFORMANCE & MARKETS Lcatin/ Standard f Htel WINCHESTER 3/4 STAR HOTEL PERFORMANCE Average Annual Rm Occupancy % Average Annual Achieved Rm Rate 2 Average Annual Revpar UK Prvincial 3/4 Star Chain Htels Hampshire 3/4 Star Chain Htels Winchester 3/4 Star Htels Surce: Hampshire Htel Trends , Htel Slutins April 2013 Ntes 1. Surce: TRI Htstats UK Chain Htels Market Review 2. The amunt f rms revenue (excluding fd and beverage incme) that htels achieve per ccupied rm net f VAT, breakfast (if included) and discunts and cmmissin charges. 3. The amunt f rms revenue (excluding fd and beverage incme) that htels achieve per available rm net f VAT, breakfast (if included) and discunts and cmmissin charges. Winchester Htel Market Fact File 6

8 WINCHESTER HOTEL PERFORMANCE & MARKETS Market Mix The midweek market mix fr Winchester 3/4 star htels is biased twards business demand, althugh less s than many ther parts f Hampshire due t the strength f midweek leisure demand in the city. The weekend market mix is strngly weighted twards leisure demand. WINCHESTER 3/4 STAR HOTELS MIDWEEK & WEEKEND MARKET MIX Business Markets Midweek Market Mix Weekend Market Mix Business % Leisure % Business % Leisure % Crprate demand assciated with cmpanies in Winchester, Andver and t sme extent Basingstke, is the key business market fr Winchester s 3 and 4 star and butique htels, accunting fr arund 90% f business demand fr mst htels. Residential cnferences are an imprtant secndary market fr Nrtn Park, which has extensive cnference facilities. They are therwise a minr market fr Winchester htels, accunting fr 8-10% f their business demand. Winchester Htel Market Fact File 7

9 WINCHESTER HOTEL PERFORMANCE & MARKETS Leisure Markets Winchester is clearly a strng leisure break destinatin. Leisure breaks accunt fr between 40% and 74% f leisure business fr Winchester htels. Leisure break rates are strng fr weekends in the summer mnths. Midweek and winter leisure break business tends t be largely rate-driven thrugh advance purchase rates and discunted rates and ffers that htels prmte thrugh third party websites and their cmpany leisure break marketing prgrammes. Grup turs are an imprtant secndary leisure market fr three f Winchester s htels and a minr leisure market fr a furth. Grup tur business is a mix f UK and verseas grups either staying fr single night stp vers n a tur f Suthern England r 2-4 night breaks. Key draws fr grup turs are Winchester, Stnehenge, Salisbury, the New Frest and the Watercress Line at Alresfrd. Winchester Christmas Market als attracts grup turs. Grup tur business tends t be lwer-rated althugh verseas grup tur business frm sme cuntries can be mre lucrative. Htels primarily take grup turs t prvide them with base business t bst midweek ccupancies. Weddings are anther imprtant leisure market fr Winchester htels, accunting fr 10-30% f their leisure trade Overseas turists accunt fr 2-10% f leisure business fr Winchester htels. Events that generate gd demand fr htels in Winchester are: Winchester Christmas Market Winchester Chamber Music Festival Matterley Bwl cncerts Mtcrss Grand Prix, Matterley Grange Park Opera Car Fest Thruxtn mtr racing Winchester Htel Market Fact File 8

10 WINCHESTER HOTEL PERFORMANCE & MARKETS Market Trends Crprate demand has grwn in the last 2 years fr Winchester htels, particularly frm Andver cmpanies. All f Winchester s 4 star htels reprted recent grwth in residential cnference business. One reprted a decline in the number f large (100 + delegate) cnferences Leisure break business has increased fr Winchester htels ver the last 3 years as a result f the staycatin trend. Thse htels that have develped spas have seen an increase in spa break business. Sme htels have als successfully attracted leisure break business thrugh third party cmparisn websites and nline travel agents, such as bking.cm, LateRms and Expedia, albeit it n discunted rates and special ffers. Demand frm verseas turists appears t have been largely static ver the last 3 years. Trends in the grup tur market are variable. One htel has seen an increase in its grup tur business, while anther has taken fewer grup turs as higherrated leisure break business has grwn. The weddings market has generally increased r remained stable fr Winchester htels and has becme mre price sensitive, with many htels nw ffering discunted wedding packages. The numbers f weddings being held in htels appears t have increased but weddings have reduced in size, ften with a smaller wedding breakfast fllwed by a larger evening functin. There has als been grwth in secnd weddings, civil partnership ceremnies, winter weddings and midweek weddings. Winchester Htel Market Fact File 9

11 PROSPECTS FOR GROWTH Majr Prjects Majr develpment prjects that are planned in Winchester are as fllws: City centre regeneratin via the Silver Hill retail, residential and ffice scheme which has nw received Secretary f State apprval fr assciated cmpulsry purchase. The scheme, n a 6 acre site incrprating the bus statin, will be delivered in partnership with Hendersn Glbal Investrs. The develpment f a new cmmunity at Bartn Farm, where Cala Hmes will develp 2000 huses. The MD has submitted a planning applicatin fr a 270m scheme at Wrthy Dwn t turn the army base int a training camp fr all three services. The scheme wuld duble the persnnel here t Plans fr a 70m hspital and specialist cancer treatment centre nrth f Winchester, with a target fr pening by Cavendish & Glucester is develping the 5-acre Chilcmb Park business park just ff the M3 t the east f Winchester. Winchester Htel Market Fact File 10

12 PROSPECTS FOR GROWTH Future Market Prspects Crprate demand fr htel accmmdatin in Winchester lks set t increase as the ecnmy recvers and business travel resumes. The planned develpment f the Andver Business Park may generate new crprate business fr Winchester htels as new ccupiers are attracted. Demand frm Andver and Basingstke cmpanies may hwever reduce fr Winchester htels if new htels are develped in these lcatins. The prpsed develpment f Wrthy Dwn as a military training camp culd generate sme new business fr Winchester htels if it is prgressed. The residential cnference market may cntinue t grw fr Winchester htels as the ecnmy starts t grw again and the city s htels practively target this market. It is likely t remain highly cmpetitive hwever. Many cmpanies have develped their wn in-huse meeting and training facilities ver the last 5 years, have gt used t nt hlding meetings r are increasingly making use f vide and telecnferencing technlgy, thus reducing the need fr face-t-face meetings. Sme htel managers in Winchester see ptential fr Winchester Guildhall t be marketed as a venue fr cnferences. Cntractr demand fr budget htel accmmdatin lks likely t increase in the next few years if the prpsed majr develpment schemes are prgressed. Cnstructin prjects shuld als generate sme demand fr 3 and 4 star htel accmmdatin frm architects, civil engineers and ther prfessinals that are wrking n them. Winchester Htel Market Fact File 11

13 PROSPECTS FOR GROWTH Turism frecasts prepared by Oxfrd Ecnmics fr the 2010 Delitte reprt n the UK visitr ecnmy 1 prject real grwth f 3% per annum in the UK visitr ecnmy thrugh t As a ppular visitr destinatin, there is n reasn t think that turism shuld nt grw at a similar rate in Winchester and that there will nt be further grwth in leisure break demand fr the city s htels. There are hwever sme signs that the staycatin trend may nt cntinue as UK residents pt again fr verseas hlidays as the ecnmy and cnsumer cnfidence recvers and in respnse t the pr summer weather in It is als clear that the UK leisure break market will remain largely price sensitive (ther than pssibly at the tp end f the market), with custmers cntinuing t lk fr gd deals and buying primarily thrugh nline travel agents and third party websites. The future prspects fr verseas turism t Britain lk very prmising as a result f the heightened expsure f the cuntry during VisitBritain is currently prjecting that the vlume f internatinal turism t Britain will grw by 3% in Future years culd als see similar levels f grwth. There is n reasn t think that Winchester will nt benefit frm this trend. Demand fr htel accmmdatin related t weddings and functins is likely t grw as the city s ppulatin increases. The visiting friends and relatives market is als likely t grw in line with grwth in ppulatin. This is a particularly strng market fr budget htels. There culd be scpe fr Winchester htels t take mre grup tur business if they wish t. This is hwever generally lwer-rated business that htels will seek t limit if they are able t attract demand frm ther higher paying markets, althugh it can be useful in helping htels t bst ccupancies fr ff-peak nights and perids. 1 The Ecnmic Cntributin f the Visitr Ecnmy: UK and the Natins, Delitte, 2010 Winchester Htel Market Fact File 12

14 HOTEL DEVELOPMENT OPPORTUNITIES Standard/ Type f htel that culd be develped Budget Butique 3/4 star Cmmentary There wuld appear t be market ptential fr a budget htel in Winchester, given the lack f such htel accmmdatin serving the city at present. The planned Premier Inn may meet this requirement. Traveldge als has a requirement fr Winchester. There may be scpe fr further butique htels and/r gastrpubs with butique bedrms in Winchester, given the strng perfrmance f such htels currently in the city. The Winchester market des nt appear t be strng enugh t supprt anther new 3/4 star htel fr the freseeable future. There may hwever be scpe fr existing htels t develp additinal bedrms and leisure, spa and banqueting facilities e.g. the prpsed expansin f the Hliday Inn at Mrn Hill. Winchester Htel Market Fact File 13

15 SOURCES OF FURTHER INFORMATION Fr further infrmatin and cntacts r t discuss yur requirements cntact: Andrew Bateman Turism Manager Ecnmy, Transprt & Envirnment Hampshire Cunty Cuncil EII Curt West Winchester SO23 8UD Tel: andrew.bateman@hants.gv.uk Winchester Htel Market Fact File 14