Attracting Investment to your Destination

1 / 21
About This Presentation
Title:

Attracting Investment to your Destination

Description:

... Travel Inn) New budget brands (Ibis, Days Inn, Sleep Inn) ... SAS, Park Plaza, City Inn, Macdonald, Marston's) Emergence of boutique ... Inn, Novotel, ... – PowerPoint PPT presentation

Number of Views:109
Avg rating:3.0/5.0
Slides: 22
Provided by: andrewk2

less

Transcript and Presenter's Notes

Title: Attracting Investment to your Destination


1
Attracting Investmentto yourDestination
Hotel Futures TMI Workshop Newcastle 2005
  • TMI WORKSHOP
  • 22 September 2005
  • Newcastle
  • Lynn Thomason Andrew Keeling
  • HOTEL SOLUTIONS

Attracting Investment to your Destination
2
Introducing Hotel Solutions
  • A partnership consultancy Tourism Solutions
    ACK Tourism
  • Background in hotel development, operational
    management, regional tourist boards
  • Hotel Futures Studies
  • Identifying development potential
  • Attracting hotel investment
  • Informing policies and site allocations
  • Managing developer interest - maximising
    destination benefit

3
Workshop Format
  • A focus on the hotel sector
  • Wider principles re the investment
    decision-making process and destination response
  • Interactive tell us what you need help with
  • Lending expertise
  • Understand marketplace what drives these
    investment decisions
  • How to gear up to facilitate the development
    process
  • Knowledge tools ACTION

4
We need a new hotel because..
  • Were short of accommodation for events
  • We dont have enough hotels to support our
    conference centre
  • We need a 4 star hotel to attract more conference
    business
  • Our existing hotels are not of a very high
    standard
  • We dont have a decent hotel in the town centre

5
We need a new hotel because..
  • We need a 4/5 star hotel to improve the image of
    our destination
  • Our competitor destinations have a better range
    and quality of hotels
  • We need better quality hotels/ better located
    hotels to attract short break business
  • We need a hotel to support our new attraction

6
We need a new hotel because..
  • We havent got a decent hotel for our VIP
    visitors
  • We need a good hotel for civic functions
  • We need a 4/5 star hotel to help regenerate our
    destination

7
Workshop Objectives
  • Discussion

8
National Hotel Performance Trends
  • 3 key performance indicators
  • Room occupancy
  • Achieved room rate (ARRs)
  • Rooms revpar
  • Provincial 3/4 star occupancies dropped slightly
    between 2001 and 2003 (to around 70) - increased
    in 2004 (to 71) but may drop back slightly in
    2005

9
National Hotel Performance Trends
  • Provincial 3/4 star ARRs were largely static
    between 2001 and 2003 (at around 62.50) but
    have increased in 2004 (to 64) and 2005 (to67
    YTD)
  • Higher quality 4 star hotels in major cities and
    business destinations are achieving ARRs of 80
    in 2005
  • 4 star country house hotels achieve lower
    occupancies (60), but high ARRs
  • (100)

10
National Hotel Performance Trends
  • 3 star hotels in rural locations and market towns
    often achieve lower occupancies (55-58) and ARRs
    (around 50)
  • London 3/4 star hotels achieve much higher
    occupancies (80) and ARRs (90) they dropped
    sharply between 2001 and 2003 recovered in 2004
    but look likely to drop back in 2005

11
National Hotel Performance Trends
  • The business market is the key driver of hotel
    performance
  • Leisure demand helps to boost occupancies at
    weekends and holiday periods but is often at
    lower rates
  • A good mix of business and leisure demand is
    needed to achieve high occupancies and ARRs

12
National Hotel Performance Trends
  • Budget hotels achieve very high occupancies
    (80-85)
  • They attract a good mix of business, contractor,
    VFR and leisure demand
  • Budget hotel ARRs are close to their published
    rates (exVAT) around 40
  • Upper-tier budget hotels achieve high occupancies
    (70-80) and ARRs of around 55

13
National Hotel Development Trends
  • Rapid expansion of the budget hotel sector
  • Continued expansion of the main budget brands
  • (Travelodge, Premier Travel Inn)
  • New budget brands
  • (Ibis, Days Inn, Sleep Inn)
  • The development of the upper-tier budget hotel
    sector/ new generation 3 star hotels (Express by
    Holiday Inn, Ramada Encore,
  • Tulip Inn,Dakota)

14
National Hotel Development Trends
  • Some 4 star development primarily in city
    centre locations
  • (Radisson SAS, Park Plaza, City Inn, Macdonald,
    Marstons)
  • Emergence of boutique hotels
  • (Hotel du Vin, Malmaison, Alias, Niche)
  • Renewed interest in golf hotel development
  • (Macdonald, De Vere)

15
National Hotel Development Trends
  • Upgrading of country house hotels
  • (Hand Picked)
  • Some 3 star development mainly in major cities
  • (Jurys Inn, Novotel, Village)
  • Leisure operators (attractions, football clubs,
    race courses) developing hotels

16
National Hotel Development Trends
  • Some development of serviced apartments
    interest from suite hotel operators
  • Some niche hotel products have expanded
  • (Warners Just for Adults, Luxury Family Hotels)

17
The Market Conditions for New Hotel Development
  • Discussion

18
The Industry ViewKey Performance Indicators
  • Occupancy 70
  • Rate (ARR) ex. discounts, vat, breakfast
  • Budget /- 40
  • Upper tier budget 50-55
  • 3 star 55-65
  • 4 star 70
  • Luxury 100
  • Significant levels of denials
  • A strong corporate base (weekday 90-100)
  • Something for the weekend
  • The state of the current hotel supply
  • Other planned hotels

19
The Industry ViewSite Location Requirements
  • Will you make the hit list?
  • City/town population 100,000 150,000
  • A growing economy evidence of development
  • Strategic location good access, proximity to
    business users and leisure attractors
  • Town centre and out of town
  • Site size 1-3 acres
  • Realistic land values (5k-15k/room)
  • Variation by size/ standard /geographic spread
  • Most development opportunistic evidence base

20
The Industry ViewBarriers to Investment
  • Identifying and acquiring sites
  • Availability of land/site values/competitive uses
  • The planning process
  • Policy plan-making/handling enquiries/planning
    advice/processing
  • Sourcing information and contacts
  • Sector supply performance data/tourism
    data/economic business data/key local authority
    other contacts

21
Hotel Investment Action Plan
  • Know your market realistic aspirations
  • Produce an evidence base KPIs/ analysis of
    potential
  • Tackle the site issues
  • Plan positively for hotels the LDF opportunity
  • A joined up approach within the destination
  • Pro-active targeting of development
  • Be responsive focused investment materials
  • Keep your finger on the pulse
Write a Comment
User Comments (0)