NUMBER ONE PORTSMOUTH 8 Surrey Street, Portsmouth, PO1 1JT Substantial Hotel Development Opportunity in Portsmouth’S Commercial City Centre

NUMBER ONE PORTSMOUTH 8 Surrey Street, Portsmouth, PO1 1JT Substantial Hotel Development Opportunity in Portsmouth’s Commercial City Centre

CGI Number One Portsmouth 8 Surrey Street, Portsmouth, PO1 1JT 2

DEVELOPMENT HIGHLIGHTS

Savills has been exclusively appointed to offer for sale a consented hotel development site at 8 Surrey Street, Portsmouth.

- Landmark high-quality regeneration scheme in the heart of this dynamic and vibrant waterfront city

- Site to be sold on freehold basis

- Well located in the heart of Portsmouth’s commercial city centre and in the immediate proximity of Portsmouth & Southsea Railway Station ( fastest journey time to London 1hr 31m )

- Planning has been approved for a 228-bedroom full service hotel of up to 13,190 sqm ( circa 142,000 sqft ) of gross floor space over 16 - 18 storeys

CGI Number One Portsmouth 8 Surrey Street, Portsmouth, PO1 1JT 3

LOCATION M275

Portsmouth is a major regional centre in Hampshire on the south coast, A 2 0 15 miles east of Southampton and 64 miles south west of London, 4 7 RD EW R RD Famous for its 800 year maritime history. N GIE

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Portsmouth’s historic Naval Dockyard is one of Britain’s leading tourist

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attractions welcoming over one million visitors a year. It includes E R

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Nelson’s flagship, HMS Victory, the world’s first iron warship, HMS S D

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Warrior, King Henry VIII’s Mary Rose and the Royal Naval Museum. F

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T O FRATTON Portsmouth is also a thriving seaside holiday resort with a fantastic QUEEN ST ARUNDEL ST N

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Local Landmarks 1. HMS Victory & Mary Rose Museum 7. Portsmouth Guildhall Number One Portsmouth is 2. Portsmouth Historic Dockyard 8. Cascades Shopping Centre located in the heart of the 3. Spinnaker Tower 9. HM Naval Base Portsmouth’s commercial city centre, opposite to Portsmouth & 4. Gunwharf Quays Shopping Centre 10. D-Day Museum Southsea mainline railway station, 5. Aspex Gallery in Gunwharf Quay 11. Southsea Castle and proximate to the Cascades 6. University of Portsmouth 12. Fratton Park Shopping Centre Number One Portsmouth 8 Surrey Street, Portsmouth, PO1 1JT 4

PLANNING

Site Overview Site History Proposed Hotel The site has an area of approximately 900sqm and is currently In October 2008, a planning application was submitted for In July 2013, planning permission was granted for application occupied by a part-demolished four-storey building, a 188 bedroom hotel building (Class C1) covering 11,063sqm; number 13/00525/FUL: with additional basement level, covering a floor space of it was designed up to 25 storeys high, in addition to two approximately 3,096sqm. The site has been vacant since basement levels, topped by a spire/helical wind turbine ‘Construction of part 16-18 storey 228-bedroom hotel (Class C1) January 2005 and was last used by the Post Office. The feature, presenting a maximum height of 101m. Ancillary of up to 13,190 sqm of gross floor space fronting Station Street’ building covers most of the site although there are some facilities to the hotel included ground and 20th floor The designs submitted to the planning authority provide for small areas of hard-landscaping on the northern, southern and restaurants (c.148 covers), 105sqm health and fitness space at a ground floor featuring a café bar and reception at the front eastern frontages. 1st floor level and 359sqm of conference facilities at 2nd floor of the building, with back of house areas at the rear. The first level. A detached coffee bar ‘pod’ (Class A3) was proposed floor provides a mezzanine to the reception and room that The site lies between the civic (Guildhall Square) area and onto the Station Street frontage accommodated within the can be either meeting rooms or accessible guest bedrooms. Commercial Road principal retail area, immediately north of landscape strategy to create a welcoming setting to the The Hotel’s main bedroom stock will occupy the first to the listed Victorian Portsmouth & Southsea railway station and hotel. near a transport interchange for taxis and buses. Other nearby fifteenth floors. buildings and uses around the site include Zurich House and Planning permission was granted, subject to a Section 106 A Community Infrastructure Levy (CIL) to Portsmouth Victoria Park (historic park), mixed retail developments on Agreement on 6 January 2009. An application to renew City Council is liable to be paid on commencement of Commercial Road and Debenhams department store. planning permission for the same development (permitted development. The CIL relating to the current planning by ref 08/01723/FUL) was granted on 23 December 2011 (ref permission is £650,981.65 (as of the 9th April 2014). 11/01080/FULR), subject to a Deed of Variation. The subject premises are not listed as a building of architectural importance nor are they situated in a conservation area.

CGI

NOTE:- Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. © Crown copyright licence number 100024244 Savills (UK) Ltd. NOTE:- Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed. 8 Surrey Street, Portsmouth 8 Surrey Street,8 Surrey Portsmouth Street, Portsmouth 8 Surrey Street, Portsmouth

Layouts Layouts Layouts Layouts Number One Portsmouth 8 Surrey Street, Portsmouth, PO1 1JT 5

The location of the DDA rooms in the schemeThe are ground floor of the building will contain the The upper floors of the building are planned Theto befirst floor provides a mezzanine to the as close to the ground floor as the plan wouldpublic functions of reception, bar/restaurant. The rational, functional and efficient. This is a criticalreception and public bar area below creating Cafe / Bar / Reception allow. This improves access for wheelchair usersbuilding will be entered via a new plaza on Station requirement of the brief. a voluminous space in the entrance lobby and and encourages their use of the hotel and hotelStreet and will project active frontage to both Back of House / Support Area adding visual interest to the active frontages on facilities. A mixture of guest room typologies Stationon all Street and Surrey Street. The entrance The building plan has been expressed with aStation north Street and Surrey Street. floors caters for the wide range of potential toguests. the building will form a contemporary ‘portico’ Plant & Services and south ‘split’ with natural light penetrating the which is of a suitable scale and form for a building common area on all floors. The adaptable meeting rooms to guest rooms are of the proposed height and massing DDA Room also located on this floor to give efficient access to The core is completely embedded in the centreshort of term guests, wheelchair users and attendees 1 Bed Guest Room Service areas such as the mechanical and the plan and the entire facade will contain guestof meetings. A break out space with seating for electrical plant room that are necessary in the 2 Bed Guest Room rooms - thus maximising the opportunity for informal meetings will activate the mezzanine level ground floor layout have been minimised and architectural expression and optimising the useand of create a well used space that responds to the pushed to one corner of the floor plan so as to Circulation daylight and views. active frontage of Station Street. maximise the connection between the Hotel and its immediate context.

The building will be serviced from the existing service lane to the rear of the site and from the northern end of Surrey Street.

Cafe/ Bar/ Reception Cafe/ Bar/ Reception Cafe/ Bar/ Reception Cafe/ Bar/ Reception

Back of House/ Support Area Back of House/ Support Area Back of House/ Support Area Back of House/ Support Area

Plant and Services Plant and Services Plant and Services Plant and Services

DDA Room DDA Room DDA Room DDA Room

1 bed Guest Room 1 bed Guest Room 1 bed Guest Room 1 bed Guest Room

2 bed Guest Room 2 bed Guest Room 2 bed Guest Room 2 bed Guest Room

Circulation CirculationSecond Floor Plan Ground Floor Plan Fifth Floor (Typical) Plan First Floor (Typical) Plan Circulation Circulation Plans Not to Scale - For Identification Purposes Only. Purposes Identification For - Scale to Not Plans Ground Floor Plan Typical Upper Floor Plan PAGE 70 PAGE 68 PAGE 71 PAGE 69 PROPOSED FLOOR PLANS

Floor Use Ground Floor Lobby, Café Bar, Back-of-house First Floor 4 x Meeting room / DDA, 2 x Meeting room / 1 - bedroom Second Floor 13 x 1-bedroom, 1 x 2-bedroom Third Floor 9 x 1-bedroom, 1 x 2-bedroom, 6 x DDA Fourth Floor 12 x 1-bedroom, 1 x 2-bedroom, 3 x DDA Fifth – Fifteenth Floors 15 x 1-bedroom, 1 x 2-bedroom Sixteenth Floor Plant

N.B. It should be noted that the application was prepared for an extended stay apart-hotel concept. CGI Number One Portsmouth 8 Surrey Street, Portsmouth, PO1 1JT 6

PORTSMOUTH HOTEL MARKET

Hotel Demand The Potential for Growth in Hotel Demand The hotel market in Portsmouth is an extremely attractive one, with year-round demand from both leisure According to Portsmouth City Council, indicators point to growth in demand for hotel accommodation in and corporate visitors. Hotel occupancy is strong with average occupancy consistently above 75% Portsmouth include: for the last four years with particularly strong demand during the summer months, when occupancy frequently exceeds 90% • Corporate demand is set to increase as the city’s economy expands and office and business park schemes are progressed and occupied Average Daily Rate (ADR) is strong due to the mix of business being split fairly evenly between corporate and leisure visitation. Corporate demand allows Portsmouth to charge competitive rates on weekdays • The port will continue to be the centre of BAE Systems’ ship support and maintenance business and and outside the peak leisure months of June, July, August and September, with leisure demand driving the Royal Navy’s surface fleet. The MoD announced plans in November 2013 to invest £100m in the rates at weekends and during the summer months. According to STR, ADR has increased at a compound expansion of the naval base to cope with the new larger aircraft carriers and warships that will be annual growth rate of 4% over the past four years. based at Portsmouth

According to STR, Portsmouth was ranked fourth of all markets in the UK for occupancy, and 11th for • The planned major construction projects in the city will generate substantial demand for hotel RevPAR in 2013 demonstrating the strong underlying fundamentals to the Portsmouth hotel market. Key accommodation performance indicators for the Portsmouth hotel market are shown below: • There are good prospects for continued growth in leisure break demand given the city’s developing visitor offer Occupancy ADR RevPAR 2012 2013 2014 2012 2013 2014 2012 2013 2014 • Cruise ship traffic through Portsmouth is forecast to increase significantly Portsmouth Hotels 78.7% 82.1% 81.3% £69.20 £71.34 £74.85 £54.46 £58.58 £60.82 • Portsmouth University, located in close proximity to the Hotel site, has approximately 4,000 overseas Regional UK 69.8% 72.7% 75.4% £59.30 £60.06 £64.03 £41.40 £43.66 £48.27 students which is forecast to increase over the next few years

Hotel Supply • Portsmouth will capitalise on the forecast growth in overseas tourism to Britain Portsmouth is currently served by a total of 37 hotels providing 1,953 bedrooms split between Portsmouth • Demand from ferry passengers will increase as international travel through Portsmouth grows and Southsea. The market is predominately comprised of independent budget and limited-service hotels, which account for over 80% of the total hotel stock, with few four-star or serviced apartment offerings in the city. Hotel Development Opportunities According to Portsmouth City Council, the current strength of hotel demand in Portsmouth and prospects Within two miles of the site, supply is reflective of the broader Portsmouth hotel market with a number for future growth in the city’s key hotel markets, point to opportunities for new hotel development in of independent, budget and limited-service hotels of which the majority are located around Gunwharf terms of: Quays and Southsea. There is currently one four-star hotel and two serviced apartments offering just 26 bedrooms between them. • An international 4 star brand - to meet the needs of the corporate market and to capitalise on Portsmouth’s profile as a leisure and business tourism destination

• Boutique hotels - to develop the city’s hotel offer to accommodate new leisure demand

• Further budget/limited service hotel provision - to meet currently unsatisfied demand at this level in the market

• Apart-hotels and serviced apartments – to cater for the extended stay corporate market. Number One Portsmouth 8 Surrey Street, Portsmouth, PO1 1JT 7

Local Hotels M275 1. Best Western Royal Beach 14 Grade: 3 | Rooms: 124 | Supply

A 2 0 2. Holiday Inn Express, Gunwharf Quays 4 7 RD Grade: 3 | Rooms 166 | Supply EW R RD N GIE TAN 3. Holiday Inn Portsmouth

Grade: 3 | Rooms: 166 | Supply

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4. Hotel Ibis, Portsmouth E R

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Grade: Budget | Rooms: 144 | Supply R S

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Grade: 2 | Rooms: 20 | Supply R 10 D A2 15 030 5 8. Premier Inn, Southsea 6 4 Grade: Budget | Rooms: 48 | SupplyGOSPORT 9. Queens 2 T S KING L

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Grade: 2 | Rooms: 101 | Supply R D B21 11. Sandringham 64 8 1

Supply

Pipeline Not to Scale - For Identification Purposes Only. Purposes Identification For - Scale to Not NUMBER ONE PORTSMOUTH 8 Surrey Street, Portsmouth, PO1 1JT Substantial Hotel Development Opportunity in Portsmouth’s Commercial City Centre

TENURE

The vendor proposes to sell the freehold interest in the site.

DATAROOM

Further detailed information is available at the project website: www.savills.com/numberoneportsmouth

PROCESS

On behalf of the Vendor we anticipate inviting interested parties to submit first round offers on Wednesday 23rd October 2015 at midday. We reserve the right to amend the timing and structure of any bid process as appropriate.

CONTACTS

For further information of the sale please contact the sole letting agents. Gary Witham Oliver Armitstead Director Associate 020 7409 9902 020 7409 9919 [email protected] [email protected]

Important Notice Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements, rental information or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

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