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Opportunities for Hotel Development in Lincolnshire

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Opportunities for Hotel Development in Lincolnshire Opportunities for Hotel Development in Lincolnshire An Overview of the Market April 2009 Locum Consulting 9 Marylebone Lane London W1U 1HL United Kingdom Tel +44 (0)20 7487 1799 Fax +44 (0)20 7487 1797 [email protected] www.locumconsulting.com Date: 13 January 2012 Job: J0895 File: j0895 lincolnshire hotel market overview 310309.doc All information, analysis and recommendations made for clients by Locum Consulting are made in good faith and represent Locum’s professional judgement on the basis of information obtained from the client and elsewhere during the course of the assignment. However, since the achievement of recommendations, forecasts and valuations depends on factors outside Locum’s control, no statement made by Locum may be deemed in any circumstances to be a representation, undertaking or warranty, and Locum cannot accept any liability should such statements prove to be inaccurate or based on incorrect premises. In particular, and without limiting the generality of the foregoing, any projections, financial and otherwise, in this report are intended only to illustrate particular points of argument and do not constitute forecasts of actual performance. Locum Consulting is the trading name of Locum Destination Consulting Ltd. Registered in England No. 3801514 J0895 Lincolnshire Hotel Market Overview Contents 1. This Market Review 4 2. Profile of the County 5 2.1 Demographics 5 2.2 Accessibility 7 2.3 Tourism 8 2.4 Visitor Attractions 9 2.5 Hotel Provision 10 3. Greater Lincoln 15 3.1 Current hotel supply and performance 15 3.2 Leisure market 16 3.3 Corporate market 19 3.4 Development opportunities 21 4. Gainsborough Area (West Lindsey District) 24 4.1 Current hotel supply and performance 24 4.2 Leisure market 24 4.3 Corporate market 26 4.4 Development opportunities 28 5. Wolds 31 5.1 Current hotel supply and performance 31 5.2 Leisure market 32 5.3 Corporate market 34 5.4 Development opportunities 35 6. Coast 37 6.1 Current hotel supply and performance 37 6.2 Leisure market 38 6.3 Corporate market 40 6.4 Development opportunities 40 7. The South 41 7.1 Current hotel supply and performance 41 7.2 Leisure market 42 7.3 Business market 45 7.4 Development opportunities 47 Locum Consulting J0895/Matt Hyslop/13/1/12/opportunities for hotel development in lincolnshire - an overview of the market (april 2009).doc Page 3 J0895 Lincolnshire Hotel Market Overview 1. This Market Review Lincolnshire Tourism, Invest Lincolnshire and the Greater Lincoln Partnership have commissioned this assessment of opportunities for hotel development across Lincolnshire. Its aim is to make developers and operators aware of the range of opportunities for hotel development across the county and to give them background to the market conditions. Although there has been substantial investment in the hotel offer around the county, there are still gaps. They range across the spectrum from full service hotels with conference facilities at the top end of the market to limited service hotels at the lower end. This prospectus covers seven district councils: City of Lincoln, West Lindsey, East Lindsey, North Kesteven, South Kesteven, Boston and South Holland. Figure 1: District boundaries and “character” areas Source: Lincolnshire County Council The information in this review has been collated from a combination of published information, personal interviews with hotels across the county, and telephone interviews with Lincolnshire businesses. Locum Consulting J0895/Matt Hyslop/13/1/12/opportunities for hotel development in lincolnshire - an overview of the market (april 2009).doc Page 4 J0895 Lincolnshire Hotel Market Overview 2. Profile of the County 2.1 Demographics According to the latest assessment in 2007, Lincolnshire has a population of about 650,000. The population has fallen by 7% since 2001. Figure 2: Population growth in Lincolnshire Districts 2001 – 2007 Population District 2001 2007 % Change Main Town Lincoln City 87,800 85,600 -3% Lincoln East Lindsey 140,100 130,500 -7% Louth West Lindsey 88,000 79,500 -11% Gainsborough North Kesteven 104,800 95,000 -10% Sleaford South Kesteven 131,100 124,800 -5% Grantham South Holland 82,600 76,500 -8% Spalding Boston Borough 58,400 58,300 0% Boston Lincolnshire 692,800 650,200 -7% East Midlands 4,172,000 4,327,500 4% England & Wales 52,042,000 53,420,000 3% Source: Invest Lincolnshire & 2001 census Lincolnshire is a largely rural county. Food production, food packaging and light engineering are dominant industries. Workers in Lincolnshire earn an average gross annual pay of around £23,000. Figure 3: Gross Annual Earnings by County 2007 Area Ann. Earnings (£) UK £30,000 East Midlands £26,300 Derbyshire £27,900 Leicestershire £27,400 Northamptonshire £26,300 Nottinghamshire £26,200 Lincolnshire £23,300 Source: National Statistics mean full time jobs, incl. bonuses Although this is lower than neighbouring counties (due to the high proportion of food production industries), there are areas of concentrated prosperity, particularly around Lincoln, Gainsborough, Spalding, north of Boston and between Grantham and Sleaford. Locum Consulting J0895/Matt Hyslop/13/1/12/opportunities for hotel development in lincolnshire - an overview of the market (april 2009).doc Page 5 J0895 Lincolnshire Hotel Market Overview Figure 4: Proportion of wealthy achievers and urban prosperity ACORN categories by postcode sector Source: ACORN Locum Consulting J0895/Matt Hyslop/13/1/12/opportunities for hotel development in lincolnshire - an overview of the market (april 2009).doc Page 6 J0895 Lincolnshire Hotel Market Overview 2.2 Accessibility Lincolnshire is located to the east of the A1/M running north-south linking to the M62. Other major roads include the A15 between Peterborough and the Humber Bridge, the A16 from Stanford to Grimsby, the A17 from Newark to King’s Lynn, the A46 connecting Leicester to Grimsby and the A52 giving access from the Midlands to the Lincolnshire Coast. Figure 5: Approximate drive times to main Lincolnshire towns Lincoln Gainsborough Grantham Spalding Boston Louth Sleaford London M25 02:15 02:30 01:45 01:45 02:00 02:45 02:00 Central London 02:45 03:00 02:15 02:15 02:30 03:15 02:30 Birmingham 01:45 02:00 01:30 02:00 02:15 02:30 02:00 Sheffield 01:00 01:00 01:15 02:00 01:45 01:45 01:30 Doncaster 01:00 00:30 01:00 01:45 01:30 01:15 01:15 Nottingham 01:00 01:00 00:30 01:15 01:15 01:30 01:00 Source: Invest Lincolnshire The main east coast rail line (National Express) between Edinburgh and London connects through Newark, Grantham and Peterborough. Lincoln, Boston, Skegness and Spalding all have train connections. East Midland Train services run from Leicester, Nottingham, Birmingham and Derby. Due to the proximity of London Kings Cross to St. Pancras, Lincolnshire connects to Paris and Brussels in main land Europe in less than 5 hours. Figure 6: Average journey time by train Mainline Direct London Kings Cross Nottingham Leeds Newcastle Peterborough 00:50 - 01:25 02:10 Grantham (Lincs) 01:10 00:30 01:15 02:15 Newark 01:20 - 01:00 01:50 Retford (Lincs) 01:30 - 01:00 01:50 Doncaster 01:40 - 00:35 01:25 With one change Gainsborough 02:00 01:30 01:30 02:20 Lincoln 02:00 01:30 01:45 02:45 Sleaford 02:00 00:45 02:15 03:30 Spalding 01:30 01:30 02:00 03:15 Source: Invest Lincolnshire Lincolnshire is close to five international airports: Humberside to the north, Robin Hood Doncaster Sheffield to the North West, Nottingham East Midlands and Birmingham to the west and Stansted to the south. Locum Consulting J0895/Matt Hyslop/13/1/12/opportunities for hotel development in lincolnshire - an overview of the market (april 2009).doc Page 7 J0895 Lincolnshire Hotel Market Overview Figure 7: Average journey time to airports Destinations Lincoln Gainsborough Grantham Spalding Boston Louth Sleaford Robin Hood Don.Shef. 01:00 00:30 01:00 01:45 01:30 01:15 01:15 Notts E. Midlands 01:15 01:15 01:00 01:45 01:30 01:45 01:15 Humberside 00:45 00:45 01:15 01:45 01:15 00:30 01:15 Stansted 02:15 02:30 01:30 01:45 02:00 02:45 02:00 Birmingham 01:45 02:00 01:30 01:45 02:15 02:30 02:00 Source: Invest Lincolnshire 2.3 To u ri s m The STEAM (Scarborough Tourism Economic Model) estimates that there are just under 1 million visits to the county annually that use serviced accommodation. The annual spend on serviced accommodation is estimated to be £125 million. Figure 8: Total visitors to Lincolnshire by market segment Visitor Type 2007 2006 % Change Serviced Accommodation 964,700 892,600 7% Non-Serviced Accommodation 1,295,000 1,249,800 3% Visiting Friends and Relatives 1,071,700 1,043,800 3% Day visitors 13,381,500 13,499,500 -1% Total 16,712,900 16,685,700 0% Source: STEAM 2007 East Lindsey receives about 50% of total tourism spend in the county, largely accounted for by the popularity of the Skegness coastal region. The City of Lincoln is the second largest generator of tourism revenue at about £117 million per year. Figure 9: Tourist revenue by District (£million) District 2007 2006 % Change East Lindsey £434 £416 4.2% City of Lincoln £117 £118 -0.4% South Kesteven £110 £109 1.2% North Kesteven £81 £78 4.5% West Lindsey £77 £77 0.1% South Holland £61 £60 2.0% Boston Borough £46 £46 -0.4% Total £927 £903 2.6% Source: STEAM 2007 Locum Consulting J0895/Matt Hyslop/13/1/12/opportunities for hotel development in lincolnshire - an overview of the market (april 2009).doc Page 8 J0895 Lincolnshire Hotel Market Overview 2.4 Visitor Attractions According to Visit Britain, six out of the top 20 visitor attractions in the East Midlands region are in Lincolnshire.
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