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New Forest Hotel Market Fact File

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New Forest Hotel Market Fact File NEW FOREST HOTEL MARKET FACT FILE September 2019 INTRODUCTION The New Forest Hotel Market Fact File provides the latest available information on: • The current hotel supply in the New Forest; • Recent hotel development; • Current hotel development proposals; • Recent hotel performance (2016-2018) • The key markets for hotel accommodation in the New Forest; • Market trends; • The prospects for growth in demand for hotel accommodation. All of the data and information included in the Fact File is drawn from a survey of New Forest hotel managers undertaken by consultants Hotel Solutions between May and July 2019. For further information and contacts or to discuss your requirements contact: Andrew Bateman Tourism Manager Economy, Transport & Environment Hampshire County Council EII Court West Winchester SO23 8UD Tel: 01962 845478 Email: [email protected] New Forest Hotel Market Fact File 1 September 2019 NEW FOREST HOTEL SUPPLY Current Hotel Supply • The New Forest currently has 36 hotels, with a total of 1,150 letting bedrooms. This hotel supply is analysed below by standard and listed in full in the table overleaf. The New Forest’s current hotel supply primarily comprises a mix of 3 and 4-star hotels. The Forest also has two luxury 5-star country house hotels (Chewton Glen and Lime Wood), three boutique hotels and inns, one 2-star hotel and four budget hotels. CURRENT HOTEL SUPPLY – NEW FOREST Standard Hotels Rooms % of Rooms 5 Star 2 103 9.0 4 Star 9 399 34.7 Boutique 3 74 6.4 3 Star 17 395 34.3 2 Star 1 15 1.3 Budget 4 164 14.3 Total Hotels 36 1150 100.0 • Most of the New Forest’s hotels are independently owned and operated. New Forest Hotels is a local hotel company that operates 5 hotels. Carey’s Manor and The Montagu Arms are in the same ownership. Only 7 national and regional hotel chains are represented in the New Forest – The Pig; Hand Picked Hotels (Rhinefield House); Luxury Family Hotels (New Park Manor); Macdonald Hotels (Elmer’s Court); Green King Inns (White Rabbit); Premier Inn (3 Hotels) and Travelodge (1 hotel). • The hotels in the New Forest are all relatively small in size. The new Premier Inn Ringwood (84 bedrooms), Carey’s Manor (77 bedrooms) and Chewton Glen (70 bedrooms) are the largest hotels. The average size of New Forest 4-star hotels is 44 bedrooms and the average size of 3-star hotels is 23 bedrooms. New Forest Hotel Market Fact File 2 September 2019 NEW FOREST HOTEL SUPPLY NEW FOREST HOTELS – SEPTEMBER 2019 Hotel Standard/Type Bedrooms Beaulieu The Montagu Arms 4 Star 22 Master Builder’s House Hotel 3 Star 26 Beaulieu Hotel 3 Star 35 Bramshaw Bramble Hill Hotel 3 Star 8 Brockenhurst The Pig Boutique 31 Rhinefield House Hotel 4 Star 50 Careys Manor 4 Star 77 Balmer Lawn 4 Star 54 Forest Park Hotel 3 Star 38 Thatched Cottage Hotel 3 Star 14 The Cloud Hotel 3 Star 17 New Park Manor 3 Star 24 Cottage Lodge Hotel 2 Star 15 Cadnam Bartley Lodge Hotel 3 Star 40 Lymington Chewton Glen 5 Star 70 Macdonald Elmer’s Court 4 Star 42 Stanwell House Hotel Boutique 29 The Angel & Blue Pig Boutique Inn 14 Passford House Hotel 3 Star 40 Premier Inn Lymington Budget 20 Lyndhurst Lime Wood 5 Star 33 The Crown Manor House Hotel 4 Star 50 The Bell Inn 4 Star 28 Forest Lodge 4 Star 36 White Rabbit Hotel 3 Star 15 The Stag Hotel 3 Star 11 Ormonde House Hotel 3 Star 19 Penny Farthing Hotel 3 Star 19 Milford-on-Sea South Lawn 3 Star 26 Ringwood Burley Manor 4 Star 40 Moorhill House Hotel 3 Star 31 Premier Inn Ringwood Budget 84 Travelodge Ringwood Budget 40 Stoney Cross Travelodge Stoney Cross Budget 20 Sway The Manor at Sway 3 Star 15 Woodlands Woodlands Lodge Hotel 3 Star 17 New Forest Hotel Market Fact File 3 September 2019 NEW FOREST HOTEL SUPPLY - CHANGES Changes in Supply 2014-2019 New Hotels • A new Premier Inn budget hotel (84 bedrooms) opened in Ringwood in January 2019. This is the only new hotel to have opened in the New Forest in the last 5 years. Hotel Closures • The Lyndhurst Park Hotel (60 bedrooms) closed in 2014. Proposals to redevelop the site for housing and retirement apartments were rejected in 2018. Investment in Existing Hotels • Most of the hotels in the New Forest continually invest in refurbishing their bedrooms, public areas and restaurant, bar and banqueting facilities on an ongoing basis. • In terms of significant upgrading programmes: o Lime Wood has undergone a major refurbishment programme and added a new Lake Cabin; o Chewton Glen has upgraded its bedrooms, continued to open treehouses (the hotel now has a total of 14), and opened a cookery school in 2017. o Stanwell House has been repositioned as a boutique hotel; o The Forest Lodge Hotel has upgraded to 4 stars. o The Thatched Cottage Hotel in Brockenhurst reopened in 2016 under new owners, after having been closed for a number of years. New Forest Hotel Market Fact File 4 September 2019 NEW FOREST HOTEL SUPPLY - CHANGES Proposed Hotel Development Hotels Under Construction • There are no hotels currently under construction in the New Forest. Proposed Hotels • There are no current proposals for new hotels in the New Forest. Planned Development of Existing Hotels • Most of the New Forest’s existing hotels plan to continue to invest in maintaining their quality. • Two hotels are looking at adding bedrooms. New Forest Hotel Market Fact File 5 September 2019 NEW FOREST HOTEL PERFORMANCE Occupancy, Achieved Room Rates and Revpar • Average annual room occupancies, achieved room rates and revpar figures for New Forest 3 and 4-star hotels for 2016, 2017 and 2018 are summarised in the table overleaf. • 4-star hotel performance has been very strong in New Forest over the last 3 years, broadly in line with the national averages for UK provincial 3/4-star chain hotels. 3-star hotel performance is not as strong. 3-star hotel occupancies have fallen in 2017 and 2018 to below the national averages, as many hotels have focused more on rate than occupancy. Achieved room rates has risen as a result, and revpar results for 3-star hotels have slightly improved. Many 4-star hotels have also focused on more rate-driven strategies, with the result that 4-star hotel occupancies have dropped back a little in 2018 but achieved room rates and revpar figures have increased. The average figures mask significant differences between hotels. Some achieve higher occupancies but lower average room rates, while others focus more on rate with consequently lower occupancies. • The New Forest’s 5-star hotels trade at very high room rates. Room occupancy levels vary significantly between the two hotels. • There is no data available on budget hotel performance in the New Forest. New Forest Hotel Market Fact File 6 September 2019 NEW FOREST HOTEL PERFORMANCE NEW FOREST HOTEL PERFORMANCE 2016-2018 Location/ Standard of Hotel Average Annual Average Annual Average Annual Room Occupancy Achieved Room Revpar 4 % Rate 3 £ £ 2016 2017 2018 2016 2017 2018 2016 2017 2018 UK Provincial 3/4 Star Chain Hotels 1 75.6 76.5 76.7 83.22 86.43 88.95 62.66 66.14 68.19 UK Provincial Hotels (All Standards) 2 76 76 76 69 71 72 52 54 55 New Forest 4 Star Hotels 76.5 77.1 75.5 79.97 85.83 91.25 61.21 66.18 68.87 New Forest 3 Star Hotels 76.1 71.0 70.4 67.14 71.85 74.48 51.10 51.02 52.43 Source: Hotel Solutions survey of New Forest hotels May-July 2019 Notes 1. Source: TRI Hotstats UK Chain Hotels Market Review 2. Source: STR Global 3. The amount of rooms revenue (excluding food and beverage income) that hotels achieve per occupied room net of VAT, breakfast (if included) and discounts and commission charges. 4. The amount of rooms revenue (excluding food and beverage income) that hotels achieve per available room net of VAT, breakfast (if included) and discounts and commission charges. New Forest Hotel Market Fact File 7 September 2019 PATTERNS OF DEMAND Patterns of Demand • Estimated average weekday and weekend occupancies for New Forest hotels in 2018 are summarised in the table below. NEW FOREST HOTELS - WEEKDAY/ WEEKEND OCCUPANCIES – 2018 Standard Typical Room Occupancy % Mon-Thurs Friday Saturday Sunday New Forest 4 Star Hotels 69 81 94 64 New Forest 3 Star Hotels 65 83 91 61 Source: Hotel Solutions survey of New Forest hotels May-July 2019 • Weekend occupancies and room rates are very strong for New Forest hotels. All hotels consistently fill and command high prices on Saturday nights through the year. Many hotels also consistently fill on Friday nights between April and October. Sunday occupancies are lower, but not as low as in other parts of Hampshire, with a number of hotels successfully running Sunday night promotions to boost occupancy. • Midweek demand for hotel accommodation in the New Forest is more seasonal. Occupancies and room rates are strong between June and September but low and more variable in the winter. Winter demand is also more price-driven. New Forest Hotel Market Fact File 8 September 2019 NEW FOREST HOTEL MARKETS Midweek Markets • Leisure break stays are the key midweek market for New Forest hotels, accounting for 70-90% of their weekday occupancy. The New Forest is the main draw for midweek break visitors, who are predominantly emptynester and retired couples visiting from London, the South East and the Home Counties.
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