LIVERPOOL HOTELS UPDATE – November 2019

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LIVERPOOL HOTELS UPDATE – November 2019 LIVERPOOL HOTELS UPDATE – November 2019 Premier Inn, 4 Bolton Street Welcome Welcome to the latest edition of the (Development queries): Liverpool Hotels Update. Claire Slinger, Assistant Director, Regeneration Investment & Development, Liverpool City Since 2004, this document has been Council, Cunard Building, Water Street, published jointly between Liverpool City Liverpool L3 1DS Council and the Local Enterprise Partnership. Tel: 0151 233 0262 It contains detailed information about the Email: [email protected] range and location of hotels which have Website: www.liverpool.gov.uk been completed, are currently under construction, or are in the pipeline both within the City Centre and outside it. It also (Hotel sector performance queries): looks at hotel performance in the City Peter Sandman, Head of Visitor Economy, Centre. Growth Platform, The Liverpool City Region’s Growth Company, We hope that the data included in the 1 Mann Island, Liverpool L3 1BP schedules will be useful to individuals and Tel: 0151 237 3916 organisations involved in hotel provision. Email: [email protected] Website: www.visitliverpool.biz Should you have any queries, require further information, or have comments on the content of the schedules, please contact: Front cover (clockwise from top): Quest Apart-hotel, Church Street (completed September 2019); the Sandon Public House, 166-182 Oakfield Road (completed April 2019); Novotel, Paddington Village (on site). 01 02 Foreword This year’s nationwide dip in hotel bookings has been attributed to several factors including the weather and Brexit. Although our occupancy rate for the first 9 months of this year may have fallen around 5%, other regional cities have seen a decline in double figures, so we take some comfort in the fact that Liverpool’s hotel sector is showing a degree of resilience. Hotel investments are planned many months if not years in advance. Therefore, regardless of occupancy level issues, investment in new developments here has never been higher. With four new hotels opened this year so far, there are currently no fewer than 13 more hotel projects on site across the City Centre at a total value of £210 million, bringing 1,276 hotel rooms and 122 apart-hotel suites. These schemes will result in 400 potential new hotel jobs being created. People love Liverpool, and they (and we!) like others to know. Liverpool has once again been recognised in TripAdvisor’s annual Travellers’ Choice Awards, when – in May 2019 – it was named 3rd in the Top 10 Destinations in the United Kingdom and the Channel Islands. We were only beaten by London and Edinburgh. What is encouraging is that some of our major tourist attractions have had their best ever year during 2019 – these being amongst the many attractors to the city which bring tourists to stay here and enjoy during their visit. In July 2019, The Beatles Story at the Albert Dock announced its busiest two weeks of all time – both record- breaking in terms of visitor numbers – and its best-ever day which saw 2,524 visitors through its doors. The latter half of July continued to break previous records with an impressive 20% increase recorded during the equivalent period in 2018. The majority of visitors came from overseas, with the attraction experiencing further growth from international markets, which now represents over 60% of total visitors. To acknowledge its success the museum attraction picked up a host of top awards last year, when it was voted as ‘the People’s Choice’ at the 2018 Liverpool City Region Tourism Awards, the ‘Best Attraction for Group Visits’ at the 2018 Group Travel Awards. Early in 2019, The Beatles Story beat other top UK attractions to win the UKInbound ‘Attraction of the Year’ award. In addition, National Museums Liverpool published its 2018-19 Annual Review, highlighting its best every year when it attracted almost 4 million visitors including a 35% increase in children and young people attending educational activities. World Museum is England’s most visited museum outside London in 2018. For the second year running, the organisation recorded its highest ever visitor figures, with 3,965,453 visits made across eight museums and galleries. Please enjoy reading about what has been achieved in 2019, and about our plans and aspirations for the year ahead. Councillor Wendy Simon Assistant Mayor and Cabinet Member for Culture, Tourism and Events 02 2019 at a glance (city-wide): £43.5 million invested in hotels £ and serviced apartments over 10 months 4 new hotels opened, 1 existing hotel extended 90 hotel jobs created 191 new bedrooms created and 167 serviced apartments 1,486,726 rooms sold (Jan-Sep) (down from 1,560,223 = 4.9% less than Jan-Sep 2018) Average occupancy 78.0% % (down from 81.7% in Jan-Sep 2018) ◙ Weekend occupancy 83.6% (down from 89.6% in Jan-Sep 2018) ◙ Weekday occupancy 77.6% (down from 80.8% in Jan-Sep 2018) Average Room Rate £75.22 £ (up from £73.68 in Jan-Sep 2018) ◙ Average RevPar £58.94 (down from £62.29 in Jan-Sep 2018) ◙ Weekend Average RevPar £86.92 (down from £91.75 in Jan-Sep 2018) FIGURE 1: Rooms Sold in Liverpool City Centre Hotels, All hotel performance data © STR Global not to be re-used without written permission January 2017 – September 2019 Source: Based on figures supplied by Liverpool LEP based on occupancy figures provided by STR Global REPUBLICATION OR OTHER RE-USE OF THIS DATA WITHOUT THE EXPRESS WRITTEN PERMISSION IS STRICTLY PROHIBITED 03 l, Wood Street Urbanista Hote 2019 SEES LIVERPOOL FOLLOW (BUT STAY AHEAD OF) OTHER UK REGIONAL CITIES IN DIP IN HOTEL BUSINESS Bubbles rarely last forever; and so it is with FIGURE 2: the UK hotel industry that Brexit worries, the Average Occupancy, Room Rates & Rev Par poor weather this year and other economic (Room Revenues) Jan-Sep 2017-19 factors have seen hotel stays across the 2017* 2018* 2019* country – other than in London – take a dent Average Occupancy Rate 78.6% 81.7% 78.0% on previous years’ growth. Liverpool is no Weekend Occupancy Rate 89.8% 89.6 % 83.6% different to its regional competitors, with the Weekday Occupancy Rate 76.3% 80.8% 77.6% number of hotel rooms sold between Average Room Rate (£) £74.14 £73.68 £75.22 Average Revenue (Rev Par) January and September 2019 being £58.54 £62.29 £58.94 1,486,726 some 4.9% less than over the same (£) Weekend Average Revenue period in 2018. £88.82 £91.75 £86.92 (Rev Par) (£) Liverpool is not alone in the 2019 dip in occupancy; London is * Based on January to September Statistics © STR Global reportedly the only location in Britain to have seen growth this year thanks to a programme of national sporting events being Future hotel demand is anticipated to come not only from hosted by the capital. However, in their ‘UK Hotel tourism, but also the corporate (and, therefore, Development Opportunities 2019’ report published earlier this predominantly weekday) market. Several employment year, Knight Frank commented that “Liverpool has performed sectors are seeing huge levels of investment either strongly, but has been penalised in its rankings due to the underway or coming. The city’s Knowledge Quarter is being exceptionally strong level of new hotels opening since the expanded with the £1 billion Paddington Village on site, start of 2018, together with the pipeline under construction whilst the £200 million, 400,000 sq ft Grade A office scheme and proposed. Nevertheless, with a strong base of business due to commence early next year at Pall Mall will be the first and leisure demand and outperforming the UK average city of a clutch of schemes recommended for the Commercial on a number of indices, the city is well placed to move higher Business District by the new Spatial Regeneration Framework up in the index in future years once the new supply is (SRF) endorsed by councillors in October 2019, and which embedded in the market”. will see 2 million square feet of office space attracted to Liverpool in the coming years. Whilst occupancy levels in the city have been affected this year, hoteliers have kept the average room rate higher. This A further 7,000 jobs are also anticipated at “Upper Central”, has unfortunately not helped to sustain RevPar (revenues), a a 56 acre new zone designated between Lime Street and pattern also seen across the regions according to the UK the Knowledge Quarter. The Upper Central SRF seeks to Hotel Market Tracker produced by HVS London, AlixPartners deliver up to 2.5 million sq ft of new development including and STR. In May,they reported that the regions had seen educational facilities to complement the city’s universities hotel occupancy drop 0.7% to 68% in the first quarter of 2019 and the existing Knowledge Quarter. (Liverpool’s occupancy was 78%, well above this); whilst with average room rate down 2.1% to £64.95 (Liverpool’s figure You can find out more about the major new development was £69.61) and RevPAR down 2.8% to £44.04 (£49.72 for schemes coming forward in Liverpool at Liverpool). Although these represented the first quarterly www.regeneratingliverpool.com decline since 2012, Liverpool’s figures all sat comfortbaly above the average for the regions. 04 Liverpool City Centre hotel facts (as at November 2019): Existing Currently on site 77 hotels/apart- 13 new C1 hotels/ hotels/guest houses apart-hotels (up from 37 in 2008) 7,321 bedrooms and C1 1,276 C1 hotel rooms & apart-hotel suites 122 apart-hotel suites (up from 3,481 in 2008) 2,838 hotel-related jobs 400 potential new hotel in the City Centre jobs to be created (1,358 of which created since 2008) £406 million invested in £210 million currently £ creating 38 new and being invested in new refurbished existing C1 projects and hotels/apart-hotels refurbishments since January 2009 FIGURE 2: Liverpool City Centre C1 hotel rooms by type, as at 01 November 2019 Note: this chart only shows existing hotels.
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