Opportunities for Hotel Development in

An Overview of the Market April 2009

Locum Consulting 9 Marylebone Lane W1U 1HL

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 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 ( 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

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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, , , , 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.

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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% South Kesteven 131,100 124,800 -5% South Holland 82,600 76,500 -8% Spalding Boston Borough 58,400 58,300 0% Boston Lincolnshire 692,800 650,200 -7% 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.

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Figure 4: Proportion of wealthy achievers and urban prosperity ACORN categories by postcode sector

Source: ACORN

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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 and the , the A16 from Stanford to , 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, 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.

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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

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2.4 Visitor Attractions

According to Visit Britain, six out of the top 20 visitor attractions in the East Midlands region are in Lincolnshire. Excluding Butlins, Lincoln Cathedral is the most popular visitor attraction in the county with around 200,000 annual visits. The Cathedral is the core of the beautiful heritage quarter of Lincoln Uphill which also includes Lincoln Castle and an array of cosmopolitan, cobbled shopping streets.

Belton House, near Grantham, is the most popular of stately homes, an important visitor market in Lincolnshire for tourists and film set locations. Burghley House (64,000 annual visitors), Doddington Hall, and Grimsthorpe Castle are also major heritage attractors.

Long Sutton Butterfly Park, not included in the Visit Britain Visitor Attraction Survey, also attracts around 50,000 annual visits.

Figure 10: Top 20 Paid Attractions - East Midlands Name County Location Visits 2006 Broadgate Country Park Leicestershire Charnwood 875,000 Wickstead Park Northamptonshire Kettering 615,100 Chatsworth Derbyshire Derbyshire Dales 604,400 Butlins Lincolnshire East Coast 450,000 East Carlton Countryside Park Northamptonshire Corby 425,900 National Space Centre Leicestershire Leicester 217,000 Lincoln Cathedral Lincolnshire Lincoln 208,000 Belton House Lincolnshire Grantham 179,700 Hardwick Hall Derbyshire Bolsover 125,200 Skegness Natureland Seal Sanctuary Lincolnshire East Coast 115,500 Museum of Childhod Derbyshire Derbyshire Dales 113,000 Rand Farm Park Lincolnshire West Lindsey 110,900 Midland Railway Centre Derbyshire Amber Valley 110,000 Calke Abbey Derbyshire South Derbyshire 106,200 Kedleston Hall Derbyshire Amber Valley 91,300 Snibston Discovery Park Leicestershire NW Leicestershire 90,000 Burghley House Lincolnshire Stamford 63,600 Battlefield Line Leicestershire Hinckley & Bosworth 55,000 Bolsover Castle Derbyshire Bolsover 54,778 Peveril Castle Derbyshire High Peak 49,300 Source: 2006 Visit Britain Visitor Attraction Survey

Lincolnshire has a strong sporting offer, especially centred around golf and equestrian facilities. The golf courses at Gainsborough and Woodhall Spa are of national significance. Four equestrian centres in the county have been approved as training facilities for the 2012 Olympics at Riseholme College (north of Lincoln), Boston, Sleaford and Grantham.

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2.5 Hotel Provision

There are about 60 hotels with about 2,500 rooms across the county (excluding Butlins).

In terms of the number of rooms, the offer in Lincolnshire is orientated to the independent sector, but about 45% rooms are now operated under brands (including Best Western). Almost all of the development in the past decade has been in the branded sector, focused particularly on the outskirts of Lincoln and in the south west of the county. Elsewhere, particularly in the east, independent hotels predominate.

Figure 11: Lincolnshire Hotel Stock Properties Rooms Rooms per Number % of total Number % of total property Independent 3 star 26 41% 877 35% 34 Budget 11 19% 593 24% 54 Independent 2 star 17 26% 500 20% 29 Best Western 5 9% 188 8% 38 Branded 3 star 2 3% 186 8% 93 Branded 4 star 1 2% 136 5% 136 Independent 4 star 0 0% 0 0% 62 100% 2480 100% 40 Both the branded and non-branded sectors are somewhat one-dimensional in nature.

Two brands – Premier Inn and Travelodge - represent most of the branded stock. With some exceptions, there is a certain sameness about much of the offer in the independent sector also.

There is a notable gap at the top of the market, with only one four star hotel, albeit several independent hotels that are officially 3 star are really operating at four star level. Many independent hotels have been investing in upgrading their facilities, typically with high aspirations.

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Figure 12: Hotels in Lincolnshire Hotel Location Rooms Conference Stars Hotel Location Rooms Conference Stars Facilities Facilities 1 De Vere Belton Woods Grantham 136 245 4 33 Angel & Royal Grantham 29 3 2 Holiday Inn Express Lincoln Centre 118 - - 34 New England Hotel Boston 28 2 3 The Olde Barn Hotel Grantham 112 300 3 35 The Crown Hotel Stamford 26 20 3 4 Holiday Inn Lincoln Lincoln Centre 97 30 3 36 Brachenborough Hotel Louth 24 34 3 5 Premier Inn Grantham Grantham 92 - 37 The Queens Skegness 24 2 6 Ramada Grantham Grantham 89 200 2 38 Boston West Hotel Boston 24 100 3 7 Travelodge Lincoln Outskirts 86 - 39 White Hart Boston 24 80 3 8 Ibis Lincoln Lincoln Outskirts 86 - 40 Court 23 200 3 9 Best Western Bentley Hotel Lincoln Outskirts 80 3 41 The Woodhall Spa Hotel Woodhall Spa 23 2 10 Premier Inn Boston 73 - 42 Norton Lodge Hotel Lincoln Outskirts 22 150 2 11 The Lincoln Hotel Lincoln Uphill 72 110 3 43 Best Western Vine Hotel Skegness 22 105 3 12 The Royal Skegness 72 100 3 44 Best Western Kings Hotel Grantham 21 20 3 13 Southview Park Hotel Skegness 62 180 4 45 Castle Hotel Lincoln Uphill 20 2 14 Petwood Hotel Woodhall Spa 53 200 3 46 Garden House Stamford 20 3 15 White Hart Hotel Lincoln Uphill 50 150 3 47 Halfmoon Hotel Alford 17 2 16 Branston Hall & Spa Lincoln Outskirts 50 200 3 48 Lincolnshire Oak Sleaford 17 150 3 17 The Golf Hotel & Aquasante Spa Woodhall Spa 50 120 3 49 Beaumont Hotel Louth 16 150 2 18 The Savoy Hotel Skegness 48 2 50 Hillcrest Hotel Lincoln Centre 15 2 19 The George at Stamford Stamford 47 50 3 51 The Sun Hotel Gainsborough 15 2 20 Travelodge Spalding Spalding 43 - 52 Cley Hall Hotel Spalding 15 3 21 Premier Inn Lincoln Outskirts 41 - 53 Red Lion Hotel Spalding 15 2 22 Travelodge Long Sutton Long Sutton 40 - 54 Woodlands Hotel Spalding 15 20 3 23 Travelodge Sleaford Sleaford 40 - 55 Charlotte House* Lincoln Uphill 14 100 - 24 North Shore Hotel Skegness 36 105 3 56 Bailhouse* Lincoln Uphill 14 - 25 Best Western Kenwick Park Hotel Louth 34 220 3 57 Tower Hotel Lincoln Uphill 14 2 26 Travelodge South Witham Grantham 32 - 58 White Hart Hotel Gainsborough 14 2 27 Best Western Admiral Rodney 31 140 3 59 Palm Court Hotel Skegness 14 2 28 Grosvenor House Skegness 30 2 60 Washingborough Hall Lincoln Outskirts 12 50 3 29 Travelodge A1 Grantham 30 - 61 Priory Louth 12 3 30 Travelodge Colsterworth Grantham 30 - 62 Rufford Hotel Skegness 12 2 31 The Lady Anne's Hotel Stamford 30 - 63 Hickman Hill Hotel Gainsborough 9 9 2 32 The Crown Hotel Skegness 29 2 64 Advocate 7 2 * We recognise these establishments are categorised as Guest Accommodation but include them as relevant comparators

J0895 Lincolnshire Hotel Market Overview

Figure 13: Travelodge and Premier Travel Inn hotels in and around Lincolnshire Doncaster Premier Inn 2 x Premier Inn 1 x Premier Inn Grimsby 2 x Travelodge 1 x Travelodge 40 rooms

Travelodge Retford Blythe Worksop

Travelodge Thorpe on the Hill 88 rooms Premier Inn Lincoln 41 rooms Premier Inn Newark-on-Trent 54 rooms Travelodge Sleaford 40 rooms

Nottingham Premier Inn 7 x Premier Inn Boston 4 x Travelodge 73 rooms

Travelodge Spalding 43 rooms

Leicester Premier Inn 4 x Premier Inn Kings Lynn 3 x Travelodge 101 rooms

Travelodge Premier Inn Travelodge Travelodge Peterborough Travelodge Grantham A1 Grantham Colsterworth South Witham 4 x Premier Inn Long Sutton 30 rooms 92 rooms 30 rooms 32 rooms 3 x Travelodge 40 rooms

J0895 Lincolnshire Hotel Market Overview

Locum has developed a framework for categorising different types of destination experience. Experiences on the left hand side of the model are dominated by corporations – the property tends to be in the ownership of large companies or finance institutions and the businesses are dominated by branded multiples. Experiences on the right hand side of the model are independent orientated – the property tends to be in the ownership of small, local companies, and the operations tend to be managed independently. Experiences at the top side of the model compete largely on quality and those at the bottom side of the model compete largely on price.

Figure 14 gives examples of where hotel experiences fit on this model.

Figure 14: Place Making Mosaic

Plotting the county’s hotel stock on the mosaic shows that there is very little stock in the top half of the mosaic.

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Figure 15: Lincolnshire Hotel Stock plotted on Place Making Mosaic

Branded 4 star 136 rooms Independent Best Western Branded 3 star 188 rooms 3 star 186 rooms 800 rooms

Budget Hotels 593 rooms Independent 2 star 500 rooms

The county is almost entirely lacking in accommodation product for those of a more “cosmopolitan” disposition.

Figure 16: Notable gaps in the Lincolnshire serviced accommodation offer

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3. Greater Lincoln

3.1 Current hotel supply and performance

There are four main clusters of hotels in and around Lincoln: overlooking Brayford Pool in the city centre, in the cathedral quarter area of Lincoln Uphill, the south east satellite villages on the major access roads and the same in the North Hykeam area south west of the city centre. Seven hotels have more than 50 rooms but none are currently above “upper three star” quality.

There is strong demand from both the corporate market on week days and the tourism market at the weekend. The larger hotels are performing well with high occupancy rates between 70-80% and an average room rate in the £70-£90 range. It is normal to find it difficult in Lincoln to find hotel accommodation, especially at short notice.

Figure 17: Hotel Supply – Greater Lincoln No. of Conference Star Hotel Location Rooms Capacity Rating City Centre Holiday Inn Express Lincoln Centre 118 0 3 Holiday Inn Lincoln Lincoln Centre 97 30 3 Hillcrest Hotel Lincoln Centre 15 0 3 The Lincoln Hotel Lincoln Uphill 72 110 3 White Hart Hotel Lincoln Uphill 50 150 3 The Castle Hotel Lincoln Uphill 20 0 2 The Tower Hotel Lincoln Uphill 14 0 2 Charlotte House* Lincoln Uphill 14 100 - Bailhouse* Lincoln Uphill 14 0 - Outskirts Branston Hall SE Satelite 50 200 3 Premier Inn SE Satelite 41 0 Washingborough Hall Hotel SE Satelite 12 50 3 Hotel Ibis Lincoln SW Satelite 86 0 2 Travelodge Thorpe on the Hill SW Satelite 86 0 2 Best Western Bentley Hotel SW Satelite 80 350 3 Norton Lodge Hotel SW Satelite 22 150 2 Total 791 1,140 Source: Visit Lincolnshire / Locum Consulting Research * We recognise these establishments are categorised as Guest Accommodation but include them as relevant comparators

About 150 additional hotel rooms are planned for the Brayford Pool area. The Holiday Inn plans a 50 room extension, and independent company Manor Crest have planning permission for a 100 room 4-star townhouse hotel with function facilities, adjacent to the Holiday Inn.

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The 118 room Holiday Inn Express opened in December 2008.

In Uphill Lincoln, the Bailhouse is planning a 20 room extension. It has a number of apartment style units operated as a hotel. Both the White Hart and the Lincoln Hotel are undergoing refurbishment, with the White Hart also planning an extension.

3.2 Leisure market

Greater Lincoln has a population of about 85,0001, with about 200,000 within a 30 minute drive time of the city. About 888,000 live within 60 minutes drive of the city centre. A further half hour journey time encompasses major conurbations and adds an additional 4 million.

1 The population figures do not include the number of graduates that live in Lincoln during term time from the University of Lincoln and Bishop Grosseteste which are 10,000. Within ten minutes of the city centre there is a population of 130,000. Travel to work area for Lincoln brings in 295,000.

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Figure 18: Drive times from central Lincoln

Source: Map Point 2004, Census 2001

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Figure 19: Greater Lincoln drive time populations Time Segments Population Accumulated Population 0-30 mins 205,000 205,000 30-60 mins 888,000 1,093,000 60-90 mins 4,218,000 5,311,000 90-120 mins 5,478,000 10,789,000 120-150 mins 9,442,000 20,231,000 150-180 mins 9,317,000 29,548,000 Total 29,548,000 29,548,000 Source: Map Point 2004, Census 2001

The local population has slightly less ABC1’s than regional and national averages.

Figure 20: Socio economic profile of Lincoln East Group Lincoln Midlands England AB 18% 21% 24% C1 28% 32% 34% ABC1 47% 53% 58% C2 11% 11% 9% D 36% 32% 27% E 6% 4% 5% Source: Neighbourhood Statistics

Hotels interviewed reported significant tourism business. The potential for further tourism development in the city is high, especially because of the exceptional history and quality of the Uphill section of the city, and the quality of the cathedral. Lincoln was one of the four regional capitals of Roman Britain. William the Conqueror ordered construction of the castle and cathedral and the city was the centre of the wool trade with Flanders for about 200 years until the mid 14th Century, which accounts for its exceptional medieval heritage. The Cathedral is one of the finest in Europe. The Castle has one of four remaining copies of the Magna Carta.

Uphill Lincoln has for centuries been the “up-market” part of the city and it has a concentration of interesting shops, restaurants and bars that add to the appeal.

There has been substantial public sector investment in the public realm, and there are plans for further substantial investment in improving the quality of the main Uphill thoroughfare, Bailgate, and in improving the quality of the visitor experience in the Castle and the display of the Magna Carta.

Hotels interviewed also reported substantial trade from the events. Lincoln’s Christmas Market is the most famous and visited in the country. The market has been running for 27 years and is recognised as a European leader.

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3.3 Corporate market

Hotels interviewed reported demand generated by a variety of organisations that are located in and without the city, especially the University, Siemens, and the RAF.

Businesses interviewed said that it was often difficult to book a room, especially at last minute.

Hotels are largely used for short bed night stays for colleagues and international clients.

The Holiday Inn, White Hart and The Bentley are the most popular business hotels. The White Hart, a traditional coaching style hotel adjoining the cathedral, was first choice for hosting Asian clients.

Siemens, the largest employers, own private accommodation that is used for hosting clients and colleagues (Siemens own a 10 bedroom town house on Lindum Hill).

Interest in new types of hotel development was focused on a higher quality, 4-star offering by a branded operator.

There was also an appetite for an aparthotel concept. The city receives high demand from the RAF bases and there is a regular demand for short term lets.

Lincoln also has two universities with a student population of about 17,000 that has a demand impact on the Brayford Pool hotels.

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Figure 21: Greater Lincoln – Business survey summary Organisation Location No. of Comments Employees Siemens Lincoln 2000 Demand for around 20 beds per month Convenience and location are most important - Use Holiday Inn & The Lincoln. Own a 10 bedroom guest house on Linum Hill, includes a flat for international colleagues. Also has meeting rooms and for internal events/team building. If need bigger go to University. Cargill Lincoln 815 Demand for about 5-10 beds per month Use hotels for foreign clients and colleagues Use the Bentley, Holiday Inn and White Hart No need for meeting rooms, have in house Would be interested in Aparthotel, larger spaces, good for work Mouchel Lincoln 600 Demand for about 20 beds per month - visiting colleagues Use the Lawns (which they operate) or office for conferencing/events Mouchel office is located on the Brayford, put 27 nights through Holiday Inn in Oct 2008, would book more if possible but oversubscribed Back up is the Bentley. Looking forward to Express opening. Quality of offer is fine, would use 4-star as well if available Minebea Lincoln 530 Failry regular use of hotels, national and international colleagues International clients want the old town, esp Japanese, Use The White Hart - very good hotel and suits needs well, or Holiday Inn No need for events rooms/conferences Dynex Power Lincoln 250 Demand for about 5-10 beds per month Book hotels for foreign clients, Chinese & other Asian enjoy the old town Use White Hart, Bentley, Lincoln, only beds, no meeting rooms In Oct, booked 14 room nights since v busy with Chinese take over of company Bucyrus Europe LTD Lincoln 20 Infrequent bookings for international colleagues, use Holiday Inn or Lincoln Civil Defence Supply Ashby de la Laude 15 Uses Travelodge on A15, it's local and convenient, only need a room for the night Might use 4* if local in Sleaford if it where there Source: Locum Consulting

J0895 Lincolnshire Hotel Market Overview

3.4 Development opportunities

Townhouse Hotel in Uphill Lincoln

The Lincolnshire County Council owned Judges Lodgings is a Georgian building with a prime location facing the entrances to the Castle and the Cathedral. There is a privately owned car park behind it. Combination of the two would form a prime site for a quality townhouse style hotel.

Figure 22: Judges Lodgings

Mid-Market Branded Full Service Hotel

Even with the proposed extension to the Holiday Inn and the opening of the Holiday Inn Express, there seems to be a gap in the branded sector, especially in the mid-range full service niche.

The property development group MODUS are in discussion over a major new retail centre to the south of Lincoln city centre, east of the railway station, called Lindongate. A specific plot of land has been identified and would be compatible with the current zoning permission for hotel development as part of the mixed use. The scheme does not have approved planning permission.

Such a location and development would be suitable for a mid-market, full serviced branded hotel of about 100 rooms. This might also suit a branded apart hotel concept.

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Eco-hotel at The Lincolnshire Showground

Lincolnshire Showground is within West Lindsey District (as opposed to Lincoln City) but is only 5 miles north of Lincoln on the A15. For this reason it has been included in the Greater Lincoln section since a potential hotel will supply demand from Lincoln city. As such, specific enquiries should be directed to West Lindsey.

Lincolnshire Showground is a 270 acre multi purpose event facility that is home to the annual Lincolnshire Show, a national scale agricultural show that attracts 60,000 visitors each year. Total annual visits to the Showground are estimated to be about 100,000.

Management at the Showground have diversified their commercial offer to include year round events and programming as part of the new £7 million Lincolnshire Events Centre. The Lincolnshire Events Centre is a multi purpose events venue with a capacity of 1000- 1500 delegates, designed as an exemplary low carbon, environmentally innovative building. It is a benchmark in sustainable development.

The Showground has a 5-10 acre development site in a prominent roadside location. The Planning Authority states that it would only accept a development of exceptional sustainability credentials. There seems to be an opportunity to complement the functions facility with a hotel that has a similar positioning. There might be the possibility of public funding to provide gap funding.

Burton Waters Mixed Use Site

Burton Waters is a 140 acre riverside mixed use development close to the historic City of Lincoln. It offers a unique concept providing a luxurious lifestyle with 200 homes and apartments positioned around the basins and channels which form the Marina. The marina covers approximately fifteen acres of water and links to the through to the River Trent.

Within the complex the David Lloyd Health, Leisure & Racquets Club offers its members and their guests a centre of pools, gymnasium, indoor and outdoor tennis courts, racquet ball, squash courts, aerobics studio, sauna and steam rooms. The Landings - a promenade of select shops, pavement cafes and restaurants add to the ambience of the area which also includes sixteen acres of lakeside land incorporating three fully stocked fishing lakes, six acres of land retained as a nature reserve and a superb range of lakeside holiday cottages.

Outline planning permission has been granted for a proposed 120 room hotel and conference centre in ten acres of gardens adjacent to the David Lloyd centre.

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Others

• Danesgate House – city centre multi storey block current currently used for student accommodation.

• Broadgate – vacant petrol station. Potential for 80-100 rooms.

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4. Gainsborough Area (West Lindsey District)

4.1 Current hotel supply and performance

Hotel provision in the West Lindsey district in the North West is more or less limited to the 9 room Hickman Hill Hotel, the 15 room Sun Hotel and the 14 room White Hart hotel, all in Gainsborough.

Hemswell Court on the A631 at Hemswell Cliff is an interesting functions centre, with 23 rooms of four star standard, that is performing well, but it only lets its rooms to groups that are attending functions. A similar operation is The White Heather which is a banqueting and functions centre with limited accommodation at corner on the A631.

There is a significant amount of corporate activity in the town generated by local businesses that include PING Golf, a number of manufacturing firms and nationally renowned The Sands jazz club. PING has a particularly strong presence with two golf courses, one golf equipment factory and demand from international corporate and sports professionals.

4.2 Leisure market

The population of Gainsborough was about 17,000 at the 2001 census, with a 30 minute drive time catchment of about 147,000. It has growth point status and is expected to grow to 28,000 residents by 20262.

Gainsborough is a pleasant market town. It has a star attraction in Gainsborough Old Hall.

The Sands is a nationally known jazz club. It usually hosts a band or performer every weekend, many of them of international fame.

The buildings of the former aerodrome at nearby Hemswell have been converted to an antiques centre that is reputed to be the biggest in Europe. It also hosts a weekly bring and sell market that is perhaps the largest in Britain, attracting up to 25,000 visits on a single day.

2 Gainsborough Regained West Lindsey District Council masterplan June 2007

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Figure 23: 3 hr drive time population map of Gainsborough

Source: Map Point 2004, Census 2001

Figure 24: Gainsborough 3 hr drive time populations Time Segments Population Accumulated Population 0-30 mins 147,000 147,000 30-60 mins 2,200,000 2,347,000 60-90 mins 4,313,000 6,660,000 90-120 mins 6,769,000 13,429,000 120-150 mins 7,730,000 21,159,000 150-180 mins 9,328,000 30,487,000 Total 30,487,000 30,487,000 Source: Map Point 2004, Census 2001

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The town has a largely unfettered catchment area and, as Figure 25 shows, the town has a prosperous hinterland. The success of a new high street retail development of high quality called Marshall’s Yard has been indicative of this.

Figure 25: Proportion of wealthy achievers and urban prosperity ACORN categories by postcode sector

Source: ACORN

4.3 Corporate market

There is a significant amount of corporate business in the Gainsborough area and evidence from the business survey suggests that the current provision is not satisfying the needs of local businesses.

PING Europe make high end golfing equipment. They own the Golf Club. They entertain professionals and wealthy clients for personal fittings and do not know where to suggest for accommodation. PING expressed a frustration with the current hotel offer and would be interested in a 4-star offer. They own a 5 bed room house in Gainsborough used for client accommodation and have access to two apartments (8 beds) at the Golf Course.

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Figure 26: North West – Business survey summary Organisation Location No. of Comments Employees The Sands Gainsborough - Jazz club books rooms for Bands / DJs Thurs / Fri / Sat. Generates 5-10 rooms per month Hickman Hill is first choice by default,but limited local choice Would use a better quality hotel if existed Eminox Gainsborough 250 Short term accommodation for overseas colleagues/clients - about 4 per month Use Hickman Hill hotel and guesthouses like The White Swan, Scotter, Bridge House Guest house accommodation is adequate but don't all serve evening meals Interested in Travelodge/Premier Inn and upmarket qulaity offer 4star PING Europe Gainsborough 180 PING own a house in Gainsborough with 5 beds, use for internal guest nights Golf Club has 2 flats, 8 beds, use for PING guests Book 1-2 hotel rooms per month for PING colleagues, on top of in house accommodation PING receive 5-10 requests per week in summer from visiting Pro's - very limited choice Need 4* plus quality accommodation for Corporate golf hospitality Looked at hotel development but no short term plans Use Eastbourne House B&B or Beckett Arms as over spill AMP Rose Gainsborough 100 Limited hotel demand but tend to send clients/colleagues to Lincoln for accommodation when needed

Schauenburg Gainsborough 38 Needs between 2-4 beds per month for clients coming to visit the factory Need B&B, limited facilities - generally looking for value Currently use Hickman Hill and rated as adequately meets their needs Would use limited service hotels (Premier Inn/Travelodge) No need for conferencing / rooms or suites/aparthotel Source: Locum Consulting

J0895 Lincolnshire Hotel Market Overview

Manufacturing and engineering firms like Eminox and Schauenburg say that they would welcome a branded budget hotel type offer.

4.4 Development opportunities

Budget Hotel in Gainsborough Town Centre

The most immediate opportunity seems to be for a budget hotel in the town centre. There are possible sites on Trinity Street, adjacent to Marshall’s Yard, which is the A159 route from Scunthorpe to Lincoln.

Marshalls Yard is a regenerated iron works which opened in 2007 as 225,000 sq ft of mixed use development. The units are primarily retail with leisure (50,000 sq ft health club) and office space set around a central car parking area.

This development has brought a number of higher quality retailers to the town including M & S Simply Foods, Laura Ashley, Next and Body Shop together with a new JJB fitness centre, cafes, restaurants and modern office facilities. Marshall's Yard continues to attract new interest in the town and has provided a catalyst for further development.

Figure 27: Marshall’s Yard

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Figure 28: Possibilities for budget hotel development in Gainsborough

Full service hotel or restaurant with rooms on Gainsborough Riverside

West Lindsey Council have moved their offices into the Marshall’s Yard development, leaving the Guildhall, which is on the riverside at the edge of the town centre, very close to the historic Gainsborough Old Hall, vacant. The Council envisages an “anchor” development on that side of the town. They have packaged a 1 acre site and are marketing it. The Guildhall is not listed.

There is another possible riverside opportunity out of town at Carr Lane where British Waterways are planning a marina development.

Golf Resort

Ping is a world class company, the “Rolls Royce” of golf equipment, and owns a world class golf course in the town where people from around the world come to be fitted.

It adjoins and area of the town which is designated for development. There are opportunities for mixed use golf resort type development.

Budget Hotel on A631/

About 10 miles from Gainsbourgh, there are two development sites on the roundabout at the junction of the A15/A631 (Caenby Corner) that would seem to suit a budget hotel.

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Figure 29: Caenby Corner – Little Chef, Petrol station, Public house

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5. Wolds

5.1 Current hotel supply and performance

The Wolds is an Area of Outstanding Natural Beauty.

Most of the current hotel provision is centred around the former spa resort Woodhall Spa, which is the home of the National Golfing Centre. There are three hotels there of 3 star standard which appear to perform at around 60-65% annual room occupancy.

There is a mix of business including golf parties, air force heritage and reunion visits, tourists, and business generated by the RAF base at . The Petwood, in particular, has a substantial functions operation.

The Admiral Rodney at Horncastle, which is part of the Best Western Consortium, also performs well and also benefits from golf demand from Woodhall Spa.

Louth is an attractive and prosperous market town. There are two slightly larger hotels, the Brachenborough and the Kenwick Park, to the north and south respectively of the town. They are both operating in the “good 3 star” range. The Brachenborough is part of a small group and has been upgraded in townhouse style. It has a bistro operation which appears to be trading very well.

The 12 room, family run and highly-rated Priory Hotel, is the main town centre offer in Louth. It also has a bistro operation.

There are no significant hotels in the Market Rasen area, although the Advocate Arms has just opened in Market Rasen as a gastro-pub with 7 rooms.

Figure 30: Hotel supply – Wolds No. of Conference Star Hotel Location Rooms Capacity Rating Petwood Hotel Woodhall Spa 53 200 3 The Golf Hotel & Aquasante Spa Woodhall Spa 50 120 3 The Woodhall Spa Hotel Woodhall Spa 23 0 2 Advocate Market Rasen 7 0 2 Halfmoon Hotel Alford 17 0 2 Best Western Admiral Rodney Horncastle 31 140 3 Kenwick Park Hotel Louth 34 220 3 Brachenborough Hotel Louth 24 34 3 Beaumont Hotel Louth 16 150 2 Total 255 864 Source: Visit Lincolnshire / Locum Consulting research

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5.2 Leisure market

The population of the Wolds area is about 100,000 people. Louth is the major town in the area with a population of about 8,000. About 200,000 people live within 30 minutes drive of the town centre.

Figure 31: 3 hr drive time population map of Louth

Source: Map Point 2004, Census 2001

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Figure 32: Louth drive time populations Time Segments Population Accumulated Population 0-30 mins 199,000 199,000 30-60 mins 387,000 586,000 60-90 mins 1,511,000 2,097,000 90-120 mins 4,654,000 6,751,000 120-150 mins 6,160,000 12,911,000 150-180 mins 8,412,000 21,323,000 Total 21,323,000 21,323,000 Source: Map Point 2004, Census 2001

The darker shaded areas of Figure 28 show the higher densities of wealthy population to the south and west of the Wolds area. This includes Woodhall Spa.

Figure 33: Proportion of wealthy achievers and urban prosperity ACORN categories by postcode sector

Source: ACORN

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Louth is a particularly attractive market town. The Rough Guide to Britain states that “with its striking church and antique centre, Louth is easily the most enticing of the region’s towns”. Having been prosperous in past times, the townscape is excellent and there are several interesting landmark buildings, including the outstanding church, which is attractively presented. It has been able to develop and sustain a substantial independent orientated retail offer, including a good selection of independent food shops.

Horncastle is a similarly attractive and, like Louth, is known as an antiques centre. It gets substantial passing trade from the A158 Lincoln to Skegness road.

Woodhall Spa has a distinctive sense of place and probably has potential as a destination. Its main tourism asset is the Golf Club. It is the home of the English Golf Union, the governing body for men’s amateur golf in England. There are two courses, one of which is rated in the top 100 in the world. It also has training facilities that are amongst the best in Europe.

This is one of the best golf tourism products in the country. About 30,000 people visit it annually but there is still capacity and the potential is not currently fulfilled, partly because the accommodation offer does not match up to the quality of the golf facilities. As one stakeholder described it, there is a “5 star golf product supported by a 3 star infrastructure”. This is a particular issue for the club when trying to find accommodation for very affluent players that it attracts on a not infrequent basis. The Club expressed considerable frustration with the state of the accommodation situation and said that it would consider having a special partnership with an operator that was prepared to invest in establishing a product at a higher quality level.

5.3 Corporate market

The race course at Market Rasen is a significant demand generator in the western Wolds. The general manager of the race course expressed major concerns about the lack of accommodation in the area, especially on race days (about 21 per year).

The RAF is a significant demand generator for the Woodhall Spa hotels. The base at RAF Coningsby is home to the new Euro Fighter and BAE Systems both of which attract hotel room demand from overseas.

Louth has a prominent light manufacturing industry based around product packaging, food and light engineering. For example, businesses on the Fairfield industrial estate on the ring road to the north of Louth create a fairly consistent demand for prospective customers and travelling directors. The larger firms such as DS Smith and Luxus currently provide Brackenborough Hotel and Kenwick Park with about 10 rooms per month each.

The higher quality 3-star properties seem to be most popular and a lodge style hotel would seem to be the most competitive proposition.

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Louth also has a motor sports industry with Cadwell Park, a motor bike race circuit, and Motorplex, a driving training and experiences centre. Both facilities cater to corporate groups, functions, events and race days generating demand for accommodation over the weekends. Value accommodation is popular with this market.

5.4 Development opportunities

Budget Hotel on Northern Outskirts of Louth

Louth has a bypass for the A16 running north-south with larger businesses clustered around the new Fairfield business enterprise park to the north of town. East Lindsey Council has highlighted a plot of land opposite the park as a potential hotel development site. It would suit a limited service hotel.

Townhouse hotel/Gastro pub with rooms in the centre of Louth

There seems to be a niche for a quality smaller hotel, probably with the catering offer forming a dominant part of the business, in the town centre. There are a few possible sites.

Upgrade existing operation at Woodhall Spa

There is expansion and improvement potential within existing operating hotels, including the possibility of resurrecting the spa as an upmarket resort.

Golf Resort

Alternatively, or in addition, there may be potential for a new golf resort development on land owned by the Club.

Market Rasen

The Race Course at Market Rasen has development plans and there is opportunity for inclusion of a hotel.

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Figure 34: Wolds - Business survey summary Organisation Location No. of Comments Employees

Market Rasen Market Rasen - Significant demand generator but such poor local supply that demand is Race Course lost to Gainsborough/Louth Gymphlex Horncastle 40 Limited demand for local hotels, directors travel to sell the product RAF Coningsby Coningsby - RAF and BAE were not available for comment. Hoteliers in Woodall Spa report high booking demand from Conningsby. The most important corporate customer in the area. BAE Systems Coningsby - DS Smith Louth 200 Demand for 5-10 beds per month Currently use Kenwick or Brackenborough which are very godd and suit their needs Would use Lodge style hotel if available but also need the quality, one night stays Luxus Louth 105 Director travels everyweek and internation al customers visit to see the products Demand for 5-10 hotel nights per month Brackenborough is best local hotel. International visitors likely to use a cheap option if available Manby Motorplex Manby 5 High demand from weekenders doing driving courses staying Fri/Sat night Looking for good value accommodation, B&B popular Demand for 30-40 beds per month Britton Group Louth 50 Demand fro about 5 rooms per month Used by visiting customers. Current using Brackneborough and Kenwick which are considered good. Source: Locum Consulting

J0895 Lincolnshire Hotel Market Overview

6. Coast

6.1 Current hotel supply and performance

The hotel supply of the coastal region is dominated by the traditional resort accommodation of Skegness. It includes hotels, guest houses and caravans. There are no significant hotels at .

In addition to the hotels, there are many bed and breakfasts and guest houses.

Butlins is the overwhelmingly dominant presence. It has about 10 times more rooms than all of the hotels in the area combined. It is located a few miles north of Skegness in .

Figure 35: Hotel supply – Coast No. of Conference Star Hotel Location Rooms Capacity Rating Facilities Butlins Ingoldmelds 3,200 2,000 2 Family leisure resort The Royal Skegness 72 100 3 Restaurants, bar Southview Park Hotel Skegness 62 180 4 Restaurant, bar, leisure facilities The Savoy Hotel Skegness 48 0 2 Restaurant, bar North Shore Hotel Skegness 36 105 3 Restaurant, bar, golf course Grosvenor House Skegness 30 0 2 Bar, café The Crown Hotel Skegness 29 0 2 Restaurant, bar, close to golf The Queens Skegness 24 0 2 - Best Western Vine Hotel Skegness 22 105 3 Restaurant, bar Palm Court Hotel Skegness 14 0 2 - Rufford Hotel Skegness 12 0 2 - Total - incl Butlins 3,549 2,490 Total - excl. Butlins 349 490 Source: Visit Lincolnshire / Locum Consulting Research

Southview Park, a 62 bedroom 3 star resort hotel on the outskirts of Skegness has the most comprehensive hotel offer in the area. It operates at around 55-60% occupancy, charging £70 per room night for a standard double with breakfast.

The Royal is the other relatively large hotel. It is a beautiful Victorian “Grand Hotel” type property. It recently changed ownership and has had investment over the last two years. Rack rate for a standard double room is £59.

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6.2 Leisure market

The Lincolnshire coast has a population of around 40,000 people, 18,000 of whom live in Skegness. The cities of the East Midlands and Yorkshire, which are the traditional sources of business, are between 2 and 2.5 hours away.

There are also 30,000 static caravans in the area. Many house semi-permanent residents who are not necessarily registered on the council records. This suggests there could be a much larger local population than official numbers present.

Figure 36: 3 hr drive time population map of Skegness

Source: Map Point 2004, Census 2001

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Figure 37: Skegness drive time populations Time Segments Population Accumulated Population 0-30 mins 61,000 61,000 30-60 mins 124,000 185,000 60-90 mins 1,238,000 1,423,000 90-120 mins 918,000 2,341,000 120-150 mins 5,612,000 7,953,000 150-180 mins 7,539,000 15,492,000 Total 15,492,000 15,492,000 Source: Map Point 2004, Census 2001

Skegness, Ingoldmells and Mablethorpe are not themselves affluent areas, but they are surrounded by an affluent band. For many people living in that band, Skegness is perhaps the most convenient centre for shopping and leisure activity.

Figure 38: Proportion of wealthy achievers and urban prosperity ACORN categories by postcode sector

Source: ACORN

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The main attraction of the coast is the fine sand beaches that run from Mablethorpe to Skegness. This English coastal resort area is a classic destination for family holidays and retirees.

Apart from Butlins, the main attraction in the area is Fantasy Island, which is also at Ingoldmells and is one of the country’s most popular amusement parks. It claims over 1 million visits annually. It has an unusually substantial indoor area and is unique in that it incorporates a major market.

Gibraltar Point National Nature Reserve to the south of Skegness is one of the UK’s most prominent coastal wetland ecosystems and bird nesting sites. The attraction of nature enthusiasts is another noteworthy market, different to the traditional seaside visitors.

6.3 Corporate market

The corporate market on the Coast is small compared to the leisure market.

The corporate market to the north and south of the coast are covered by Louth and Boston. Skegness has a limited corporate market. Southview Park, on the outskirts of Skegness, is the most attractive corporate option currently operating. Their strongest market is functions/catered events and tourism in the summer months.

Butlins is the largest employer in the area but only generates limited room demand due to the nature of their business.

Batemans Brewery located at Wainfleet, just south of Skegness is another major local business. They own two pubs with rooms in the Skegness area and are keen to expand their accommodation offer.

6.4 Development opportunities

A Budget Hotel on Skegness Seafront

There is likely to be demand for a budget style hotel. There are possible sites on the seafront.

There is also a 50 acre site on the Skegness to Wainfleet road with zoning for hotel development.

The Southern foreshore is a strip of Council owned land on the Skegness seafront. It is currently used for public leisure activities such as path ways, bowling, boating lakes and a car park. If the development could be designed and managed sensitively, this could be a possible location.

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7. The South

7.1 Current hotel supply and performance

This section covers Sleaford, South Kesteven, Boston and South Holland.

Figure 39: Hotel supply – South No. of Conference Star Hotel Location Rooms Capacity Rating Facilities Premier Inn Boston 73 0 2 Limited service New England Hotel Boston 28 0 2 Restaurant Boston West Hotel Boston 24 100 3 Golf, catering Whitehart Boston 24 80 3 Restaurant, bar De Vere Belton Woods Grantham 136 245 4 Country golf resort The Olde Barn Hotel Grantham 112 300 3 Restaurant, bar, spa Premier Inn Grantham Grantham 92 0 2 Limited service Ramada Grantham Grantham 89 200 2 Restaurant, bar Travelodge South Witham Grantham 32 0 2 Limited service Travelodge A1 Grantham 30 0 2 Limited service Travelodge Colsterworth Grantham 30 0 2 Limited service Angel & Royal Grantham 29 0 2 Restaurant, bar Kings Hotel Grantham 21 20 2 Restaurant, bar Travelodge Long Sutton Long Sutton 40 0 2 Limited service Travelodge Sleaford Sleaford 40 0 2 Limited service Lincolnshire Oak Sleaford 17 150 3 Restaurant, bar, catering Travelodge Spalding Spalding 43 0 2 Limited service Cley Hall Hotel Spalding 15 0 3 Restaurant, bar, weddings Red Lion Hotel Spalding 15 0 2 - Woodlands Hotel Spalding 15 20 3 - The George at Stamford Stamford 47 50 3 Restaurant, bar, business centre Lady Ann Stamford 30 0 2 - Garden House Hotel Stamford 20 60 3 Restaurant, bar, events rooms The Crown Stamford 17 0 - Restaurant, bar Total 1019 1225 Source: Visit Lincolnshire / Locum Consulting research

The Grantham area has the highest density of hotel supply in the county. This includes the Belton Woods Resort and 165 budget hotel rooms (1 x Premier Inn and 3 x Travelodge). Demand in Grantham is also mainly from business travellers.

Stamford currently has four hotels, although there are several upper end B&Bs. All have high occupancy levels and achieve high revenue per available room.

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Much of the demand in the area comes from business travellers to Peterborough and Grantham although the leisure market is also important, especially in Stamford (enhanced by the Burghley horse trials and ‘film tourism’). Proximity to the A1 makes it a popular stopping off point.

There has been budget hotel development in the south east of the county with Travelodges at Spalding, Long Sutton and Sleaford. Boston has a Premier Inn and a new 23 room hotel at the golf course called Boston West.

7.2 Leisure market

The Fens and Vales of the south offer a relaxed rural setting of historical English heritage and wildlife waterways.

Stamford is one of the most interesting and attractive Georgian market towns in the country. A former wool town, it has retained many of the original old Lincolnshire limestone buildings and is used regularly as a period film location. Nearby Burghley House hosts the Burghley Horse Trials event. Belton House, Grimthorpe Castle and Belvoir Castle are other attractive stately homes in the area.

Boston and Spalding are the major Fenland towns. There are 200 miles of waterway in the area. Boston is famed for the “Boston Stump”, the tallest tower of any English parish church at 272ft. Spalding is known as the flower producing capital of England. Boston is home to two RSPB wildlife reserves at Frampton and Freiston which, together, comprise the fourth most visited reserves in the country.

A long term vision for Boston is beginning to shape the future of the town’s waterways providing investment potential from the Haven Barrier through to Boston's Black Sluice Lock project. The project includes a new lock, moorings for boaters, a new cycle path, a visitor centre and cafe at the Black Sluice site. This is all part of the Fens Waterways link project, one of the largest in Europe which will open up 240 km of navigable waterways.

Figure 40: Population of the South Location Population South Kesteven 130,100 Boston 58,300 South Holland 82,100 Sleaford plus 10 mins drive 17,000 South Total 287,500 Source: Map Point 2004, Census 2001

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There are about 290,000 people living in the south of the county. Grantham and Boston have the highest population densities.

Grantham has also been awarded Growth Point status which will see an increase in population with 3,200 new dwellings by 2016 and at least 6,000 by 2026. An additional 4,200 jobs are predicted by 2016.

Figure 41: Population density map for South

Source: Map Point 2004, Census 2001

Southern Lincolnshire has high concentrations of ACORN categories wealthy achievers and urban prosperity, especially in the south east.

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Figure 42: Proportion of wealthy achievers and urban prosperity ACORN categories by postcode sector

Source: ACORN

The South has the advantage of being well connected to the population centres of middle England and London. Both Boston and Stamford are within 2 hours drive of the major conurbations of Manchester, Birmingham and London.

Figure 43: 3 hr drive time populations for Stamford and Boston Stamford Boston Time Segments Population Accumulated Population Population Accumulated Population 0-30 272,000 272,000 115,000 115,000 30-60 1,172,000 1,444,000 608,000 723,000 60-90 3,505,000 4,949,000 1,229,000 1,952,000 90-120 12,572,000 17,521,000 3,761,000 5,713,000 120-150 11,975,000 29,496,000 8,480,000 14,193,000 150-180 10,286,000 39,782,000 15,943,000 30,136,000 Total 39,782,000 39,782,000 30,136,000 30,136,000 Source: Map Point 2004, Census 2001

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Figure 44: 3 hr drive time population map for Stamford & Boston

Source: Map Point 2004, Census 2001

7.3 Business market

South Lincolnshire has a strong corporate sector around the market towns of Grantham, Stamford, Spalding, Boston, and Bourne.

Conversations with businesses suggested that budget style accommodation is most popular but there is also interest in a higher quality offer, especially in the Sleaford region.

In the Grantham area, Moypark has relatively high demand for accommodating visiting directors. Some businesses, such as Park Air Systems, showed an appetite for longer stays in an Aparthotel concept.

Boston and South Holland have a fairly active corporate sector with bed night demand coming from the food and manufacturing industries. Good value bedrooms and restaurants are the priority. Premier Inn and Boston West are both popular, as is the White Hart. There is interest in a 4-star quality offer.

Spalding is an important centre of food and flower production and attracts international and national business travellers. Quality 4-star hotel supply is not available and so market share is lost to Peterborough and Grantham. Industry and business is understood to be growing. The most recent hotel to open in Spalding is a 43 bedroom Travelodge at Springfields, a mixed use site with a factory outlet centre and exhibition venue. The hotel is performing well.

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Figure 45: South – Business survey summary Organisation Location No. of Comments Employees Fogarty Boston 250 Use local hotels to accommodate buyers from clients, M&S JohnLewis etc Demand about 10 rooms per month Mainly use Premier Inn for UK clients. International clients prefer to be town centre, Whitehart or Boston West (new) Don't need wide range of facilities like conference rooms, leisure. Intereted in high quality bedroom, food, demand for 4* services Jakemans Boston 45 Demand for 5 room per month, directors, sales team from head office in Gloucester Use Boston West hotel (Golf), because it's best quality on offer, good location No need for meeting rooms/conferencing, use onsite rooms at the office Would be keen to try alternatives if they existed Fresh Del Monte Boston 70 Small demand 1-5 rooms per month Moypark Grantham 7000 Very high demand for rooms, Directors from Northern Ireland travel to Grantham head office weekly/monthly Often booking more than 5 rooms per week - demand for 20 rooms per month Currently use Belton Woods, Angel & Royal and Ramada Demand for high quality and use of conference facilites. Park Air Systems Market Deeping 150 Demand of 5 rooms per month - international clients and staff training Use a range of local hotels. Limited suplpy in Market Deepins so use George, Crown, Garden in Stamford, and Queensgate, Park Inn in Peterbrough Training groups of 6-8 people stay for one-two weeks from Canada, Poland. 7-8 groups per year Current offer is ok but liked idea of Aparthotel for trainees. Sometimes look for apartments Intergreen Spalding 100 Demand for about 5 rooms per month Dutch directors come over either 1/2 night stays or 1/2 week stays Currently use Checkers, - B&Bs Key driver is decent bedroom and restaurant. Less so conference facilites or apart concept Would use better quality hotel if available Source: Locum Consulting

J0895 Lincolnshire Hotel Market Overview

7.4 Development opportunities

Boutique Hotel in Stamford

Stamford would be an excellent location for a townhouse style hotel, perhaps with a spa. It would be most advantageous for a branded operation to enter the market to supplement the current offer of independent hotels. There are a number of potential development sites in the town centre including redevelopment of the Lady Anne hotel, the Cattle Market or the Welland Quarter by the river.

Grantham Business Hotel

Demand in Grantham is largely generated by the corporate sector. The town has growth point status and there is likely to be room in the market for a full service branded hotel. There are potential development sites at Station Approach and the Canal Basin.

Sleaford and the estate villages

Sleaford is also largely dependent on business tourism, although this may be due partly to a lack of suitable hotels for leisure uses.

There are a number of attractive estate villages between Sleaford and Lincoln for example, which could, with suitable accommodation, be attractive for weddings or residential corporate meetings.

There are several potentially suitable properties on the market, which could be converted to interesting and distinctive hotels.

Spalding Business Hotel

The majority of hotel demand in Spalding comes from business travellers. These business travellers are under supplied for quality accommodation and therefore commute to Grantham and Peterborough when higher grade (3-star plus) accommodation can be found.

The opening of the A1073 in 2010, which will improve access to Peterborough, is likely to add to the need for suitable business accommodation.

The future need in the area is likely to be for more branded accommodation which would cater primarily for business users but would also provide more family rooms when these are needed.

Boston Town Centre Budget Hotel

Modus are developing a mixed use retail scheme on an 11 acre site in West Street in the town centre. It will contain mainly high street branded stores with a few independent units. There is also residential use and a supermarket. It is due to open in 2011 or 2012. It may be suitable for a small c.25 room budget hotel.

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