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Birmingham Leisure Focus

2015

Birmingham’s published in July 2011 highlights the soaring ambition of the UK’s second city, a status disputed in some quarters. Since then there has been a stream of good news for the local economy and property markets. In a report by Start Up Britain, Birmingham is named as the UK’s most entrepreneurial region outside of London, and a “start-up hotspot”.

1 Image by Network Rail Birmingham is named as the best property investment destination in the UK, sixth best in Europe, someway ahead of London in 10th position.

Introduction

More companies are starting up here than is its highly skilled labour force and source in any other UK City outside of the capital, of new talent. Birmingham is the UK’s with Birmingham some way ahead of its leading centre for financial services outside rivals Manchester and Glasgow. In another of London. The city region has the largest report ‘Emerging Trends in Real Estate business, professional and financial services 2015’, produced by the Urban Land Institute industry in the country, with some 220,000 and PwC, Birmingham is named as the best people employed in over 21,000 companies. property investment destination in the UK, sixth best in Europe, someway ahead of The city has five universities and six major London in 10th position. colleges, with some 73,000 undergraduate and postgraduate students, now set to Ongoing regeneration and inward grow with the London School of Business & investment are a major factor as to why Finance looking for a new home by the end Birmingham is rated so highly. After a of 2015. Not surprisingly there is a boom £600m upgrade Birmingham New Street in demand for the development of student Station will shortly fully reopen with the accommodation! Current estimates are associated Grand Central shopping area and for the City’s population to grow by some one of the largest John Lewis stores outside 150,000 by 2031, leading to a further of London, joining the City’s existing Harvey boom in city living. Major new housing Nichols and Selfridges. Birmingham is the developments will start this year in the only UK city outside of London to achieve Broad Street/Mailbox, Edgbaston and this hat trick of flagship department stores. Jewellery Quarter areas. Major commercial property developments have recently commenced at the 9.2 acre Against considerable economic and political Arena Central site between Broad Street head winds, Birmingham City Council is and Holliday Street which will deliver on to be praised for providing the framework completion 670,000 sqft of grade A for all this in the Big City Plan. The recent offices and also at Paradise Circus between decision by Birmingham and the four Black Chamberlain and Centenary Squares, the Country Councils to create a combined first phase of which will comprise 170,000 authority in order to drive growth and sqft of grade A offices. Each will include modernise transport infrastructure is ground floor space for new restaurants and welcome, and in the latest development leisure facilities. The Snow Hill and Colmore both Coventry City Council and Solihull districts now have a new master plan and the Metropolitan Borough Council have former has already been chosen by HS2 as indicated that they may join the party. The the location for its headquarters. Midland Metro extension from Snow Hill to New Street is coming, but more innovation There is great strength in the local economy. and investment will be necessary to create Birmingham has 33,000 businesses, the a truly integrated transport system. It will largest concentration outside London; a be needed given the latest headlines. In a population that has increased in the last 10 sensational announcement HSBC is to move years by 300,000; is the youngest city in its UK bank headquarters, at least 1,000 Europe with 40% of the population under head office roles, from London to the Arena 25; and some 5,500 Londoners in their 30’s Central development. Birmingham’s second moved here last year alone, the highest of city status is surely therefore assured. any regional city. A key attraction of the city

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Hotels

Confidence in ’s hotel The conversion of former office buildings Staycity, forming part of the Newhall Square market has seen continued improvement has provided opportunities for a number development. Former offices comprising over the recent couple of years, with of corporate brands with an Express by the Beneficial Building at the corner of some exciting new hotel developments Holiday Inn opening at Snow Hill Plaza and / Suffolk Street anticipated to add significantly to the City’s an aparthotel development by Staybridge are currently being developed to provide existing accommodation offer. Recent Suites at Martineau Place on Corporation a hotel, with an announcement of the hotel industry key performance data for Street. future operator currently awaited. Hotel Birmingham demonstrates not only positive developments which involve the conversion sector trading improvements, but also the The city centre fringe with the developing and reutilisation of redundant office continued value for money available to Eastside district is the site of the 4 star buildings have contributed significantly to visitors in comparison with many Hotel La Tour and at the north-western the new hotel developments and will likely European cities. fringe, a second Hampton by Hilton Hotel have benefited from the Business Premises fronts Constitution Hill, complimenting the Renovation Allowance (BPRA) scheme, Inward investment in hotel development in brand’s offering on Broad Street. which offered tax saving incentives for the city centre is evident from the number such investment. of new openings since the beginning of A number of hotel schemes are currently 2013. These include two new Whitbread under construction, including the new 300 sites for their Premier Inn brand, firstly bedroom 4 star Park Regis Hotel at the Five at Stephenson’s Place off New Street in Ways end of Broad Street, a redevelopment close proximity to the redeveloped New of former office tower Auchinleck House; Street station, and secondly at Waterloo a 110 bedroom Adagio Hotel in Digbeth’s Street in the Central Business District. Beorma Quarter; and an aparthotel for

4 Birmingham Leisure Focus 2015 Developers’ appetite for new hotels Birmingham Hotels’ Performance (STR Global) in Birmingham city centre looks set to continue, with hotels proposed to form part of two of the City’s most significant Year 2012 2013 2014 YTD 2015 comprehensive redevelopment schemes. A new Express by Holiday Inn is planned to form part of the Arena Central development Occupancy 67.3% 69.5% 71.8% 72.2% and a replacement for the 4 star Copthorne Hotel due for demolition in 2018, is included ADR £53.49 £54.46 £58.43% £60.77 in the master-plan for the Paradise Circus redevelopment. Another more recently RevPAR £35.97 £37.87 £41.94 £43.89 announced proposal relates to a cleared site lying at the junction of Broad Street % Change and Oozells Way, where developer Regal Property Group have recently secured Occupancy -1.3% 3.4% 3.2% 5.6% planning permission for an 18 storey hotel for European operator Innside Hotels. ADR -1.5% 1.8% 7.3% 7.3% Horton Estates’ significant investment in the restoration of the former Grand Hotel RevPAR -2.8% 5.3% 10.7% 13.2% fronting is now at an advanced stage, announcement of a deal with a hotel operator is currently awaited.

Visitors to the City, for both business and 3 leisure purposes, can therefore expect to benefit from an increasingly diverse choice of hotel options over the course of the next few years. Existing hotels will need to maintain their standards and may need to refresh their presentation, if they are to continue to appeal and meet the challenges provided by the new and growing competition.

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1. Hotel du Vin

2. Radisson Blu

3. Hotel La Tour

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Pubs & Bars

Given its size and population, Birmingham In more recent years, inner city districts traditionally had a surprisingly compact City such as the historic Jewellery Quarter and Centre. Perhaps constrained by its inner the creative hub of Digbeth, have enjoyed a ring-road, the ‘middle of town’ essentially huge renaissance with the independent and comprised the retail stretch between innovative licensed retail operators leading New Street Station and the Law Courts in the march. Corporation Street and the Colmore Row office quarter to the northern side of St. From Alfie Bird’s or the Rainbow Venues Philip’s Cathedral. in Digbeth (pop in for a pint and end up in a 10,000 capacity music festival – yes, If such boundaries applied to the City’s pub really) to the more conventional Rose Villa scene though, they have now been well and Tavern or Lord Clifden in Hockley, there is truly smashed down, none more so than in an energy these areas haven’t seen since the recent few years. If you were to pick their industrial pomp. It won’t be stopping up a leisure guide to the City Centre today, there either, the redevelopment of Curzon it would be as geographically spread as it Street and the Eastside, in preparation would be diverse. for HS2, will see the creation of more leisure opportunities, as ‘the Gateway to The growth of Broad Street pushed the Birmingham’ pushes the City’s boundaries leisure circuit to the West, whilst China further still. Town/The Arcadian and the Bull Ring stopped turning their back on the centre and were embraced.

6 Birmingham Leisure Focus 2015 This isn’t to say the traditional City Centre reopened after lying empty for more than is being abandoned, far from it. Pure Bar & a decade, the Fiddle & Bone at Sherborne Kitchen, on the corner of Victoria Square, Wharf will once again offer a venue for brought craft beer and top quality food to music and dining following a £650,000 the heart of the Business District, Gas Street refurbishment by local entrepreneur Social has recently brought cocktails, craft Earl Wightman. beers and its ‘urban kitchen’ to the Mailbox and the sector’s poster ‘bad boy’ Brew Dog Elsewhere if a Brummie drinker from the doffed its cap to Birmingham as the ancestral cask ale desert of the 1980’s suddenly found 1. View of Broad Street home of heavy metal when it opened in 80’s himself in The Wellington, the Post Office hot-spot John Bright Street. Ozzy would Vaults or the Craven Arms, he’d think he’d 2. Gas Street Social be proud! Cozy Club has just opened its landed in beer heaven. Once the City of a latest outlet in the original Midlands Bank in thousand trades, there will soon be a beer 3. Cosy Birmingham and you can expect others to for each at this rate! follow in this area as the New Street Station 4. Pure Bar and Kitchen redevelopment nears completion. Recently

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With a population of over one million, recently been described as ‘World Class’. Mailbox complex. Also opening in September Birmingham has one of the most ethnically Birmingham’s rise to culinary greatness 2015 the Grand Central development at rich in the UK, formed from many different has now made it the UK’s only city outside New Street Station is to feature 60 premium cultures and nationalities. This mix of of London and Edinburgh to boast four shops, restaurants, cafes and one of the cultures means the city enjoys a wide variety Michelin Star restaurants and is now largest John Lewis department stores in the of cuisines originating from as many as 30 enjoying a reputation for good food as a country. Of the first ten restaurants and different countries. The City is therefore tourist and a leisure destination. cafés opening, seven will be new to the city, able to satisfy pretty much all tastes, most only currently found in London and preferences and budgets, whether you seek Most of the major restaurant chains are now the South East such as Tortilla, Pho and a traditional pub offering, a curry or modern represented in the City in developments Tapas Revolution. contemporary Michelin Star cuisine. such as The Mailbox, The Cube and Brindley Place. These include the likes of established As with the pub scene, there is a variety operations Miller & Carter, Cote, Marco of both national chains and independent Pierre White, Shogun Teppanyaki and the restaurants within the city; which has newly opened Gas Street Social within the

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As you would expect of the nations, second City, there is no shortage 1. Canal of stylish yet informal restaurants attracting the serious foodies. For example, Lasan which serves a modern twist on Indian cuisine, 2. Adam’s also appearing in the Sunday Times Top 100 UK Restaurants. The recently opened Turtle Bay Restaurant in John Bright Street, offers 3. The Mailbox an authentic take on Caribbean food. A short trip to Digbeth will take you to a former pub, now serving tapas enjoying excellent reviews 4. Cube terrace under the name of Rico Libre.

The newest restaurant awarded a Michelin star is Adams situated a short distance from New Street Station. Adams joins Turners in Harborne, Purnell’s in the central business district and Simpsons in Edgbaston, all having a coveted Michelin Star. Outgrowing its existing premises, Adams is shortly to move to New Oxford House in Waterloo Street in the Colmore Business District and close by a new bar/restaurant by Nosh & Quaff is set for a summer opening at 130 Colmore Row. Carters of Moseley has also gained the prize in the Waitrose Good Food Guides Readers Restaurant of the Year Awards.

As to the future, we see no easing up of restaurant activity within the city. In April the Botanist opened its doors to the general public following a £1.2 million refurbishment programme of Cheltenham House on Temple Street. Rumours also persist that two premium London based restaurant brands are looking at opportunities within central Birmingham, Burger & Lobster and Argentinian Steak House specialist Gaucho. With the memories of the recession now receding, operator demand and confidence is expected to continue to grow.

9 Birmingham Leisure Focus 2015 Leisure & Night Clubs

The club scene in Birmingham is big, For those looking for high quality world and music space. A new Market Square will however there is a great deal more to the class cultural events, the Symphony Hall on become a hub for cultural events in the city City’s leisure offer. On Broad Street we Broad Street houses the City of Birmingham to be served by the extended Midland Metro have Gatecrasher, Birmingham’s biggest Symphony Orchestra. Birmingham system. Meanwhile the city’s planners have nightclub, and Players, whilst areas such Hippodrome, is home to the Birmingham recently granted consent for a new £40m as Southside incorporating the City’s Royal Ballet, and is the Midland’s base for Birmingham Conservatoire, to relocate this Gay Village and Summerrow, boast other the Welsh National Opera. Aside from classical music venue to Millennium Point at venues such as the long established Apres this the Hippodrome which sells more Eastside, from the current facility at Paradise and Mechu. Smallbrook Queensway now seats annually than any other UK theatre Circus, now undergoing redevelopment. features the relocated and revitalised including London’s West End, the New On a different level the Jewellery Quarter Snobs. These districts prove to be popular Alexander Theatre, which has a memorable has become home to the Wonderful World with the City’s large student population, Edwardian auditorium, and the recently of Trains and Planes, a new family attraction. who also inhabit the more cutting edge refurbished Birmingham Rep stage a rich mix With 11,000 metres of track, models and venues to be found in the Digbeth quarter. of drama and musicals, and are amongst the layouts from the UK, Europe and North Neither should we forget the Jam House country’s favourites for touring companies. America as well as flight and rally simulators, in the Jewellery Quarter’s St Pauls Square, has also undergone this is fast becoming a major visitor perennially popular with city sophisticates. major restoration to provide another destination. The city really does provide For those wanting a bit more risk from their magnificent venue for live performance. leisure opportunities for everyone! night out there are the Broadway, Grosvenor and Genting Casinos in the city centre, as Emphasising Birmingham’s cultural and well as the Genting Casino at Star City, civic heritage is a major thrust of the City a purpose built leisure hub at the City’s Council’s Big City Plan. This will see new northern fringe. public open spaces added to the City’s established civic heart around Victoria, Live performance forms a big part of Chamberlain and Centenary Squares. The Birmingham’s leisure scene. Regular live stunningly designed comedy can be found at the Glee Club in has recently added to the City’s cultural Hurst Street and at Jongleurs on Broad venues, including the Birmingham Museum Street. As home to some of popular music’s and Art Gallery, the Ikon Gallery and the most famous performers it is not surprising Royal Birmingham Society of Artists. There 1. The REP that the live music scene in Birmingham is are ambitious plans to extend the City’s significant. The Barclaycard Arena regularly leisure attractions. Birmingham Smithfield 2. The Jam House plays host to some of the world’s biggest recently unveiled, will create a major tours, whilst the O2 Academy and other leisure and family quarter on the site of the 3. Bullring Selfridges smaller venues, stage a constant stream wholesale markets adjoining the Bull Ring, of gigs for rock, jazz, folk and blues fans. providing new museum, cinema, gallery 4. Custard Factory

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10 Birmingham Leisure Focus 2015 4 Our areas of expertise

> Buying & Selling – Our experienced > Landlord & Tenant – Fleurets is the market > Taxation, CPO, Consultancy and local teams together with our extensive leader in Rent Review negotiations across Litigation – specialist advice if required. database of buyers give you the best the hotels, restaurants, pubs and other chance of achieving a sale. leisure property sectors. Established for nearly 200 years, Fleurets is the largest firm of Chartered Surveyors to > Valuations – We can help if you are > Viability Studies – Considering a change specialise nationally and exclusively in the purchasing a property, considering of use? We advise owners, developers sale and valuation of hotels, restaurants, pubs refinance or need an independent valuation and local authorities with regard to and leisure property. for other purposes. business viability.

> Rating – Rates can be one of the highest > Expert Witness – Our Chartered outgoings of a business. Fleurets expert Surveyors are frequently appointed as rating team can let you know if you are Expert Witness in a range of disputes, paying too much. including the preparation of evidence for use at High Court, Lands Tribunal and Arbitration.

Our team for Birmingham

Fleurets Midlands T: 0121 236 5252 63 St. Pauls Square F: 0121 236 9400 Birmingham, , B3 1QS E: [email protected]

Paul Newby Director T: 0121 236 5252 M: 07836 722950 E: [email protected]

Andy Tudor Divisional Director T: 0121 236 5252 M: 07880 702166 E: [email protected]

Anthony Barnes Senior Associate T: 0121 236 5252 M: 07899957168 E: [email protected]

Jim Yarwood Associate T: 0121 236 5252 M: 07971 175 877 E: [email protected] London 0207 280 4700 North West 0161 683 5445 Simon Cable North 0113 234 0304 Negotiator Midlands 0121 236 5252 T: 0121 236 5252 West & South Wales 0117 923 8090 M: 07833 590576 South 01273 429500 E: [email protected] East Anglia 01787 378050

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