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Brighton Leisure Focus Hotels Restaurants Pubs Leisure Leisure Property Specialists Investments Brighton Leisure Focus 2016 With numerous attractions, including the Royal Pavilion, Brighton Pier, The Lanes and Brighton Marina Leisure Complex, it is no surprise that the city welcomes around 8 million visitors a year; and that Brighton’s leisure and hospitality markets continue to be at the forefront of change and innovation. Brighton Leisure Focus |1 Fleurets.com Brighton Leisure Focus 2016 fleurets.com 1 2 3 2 Brighton Leisure Focus 2016 fleurets.com With one of the largest visitor numbers for a UK city outside of London, Brighton is constantly evolving with something for everyone. Introduction Brighton may have been trying to brush Group and Dorton Group have begun work both perceived and actual of Brexit are aside its ‘London by the Sea’ image on the Circus Street site, which is due for rippling through the licensed industry. since receiving city status in 2001 but completion in a few years time. The Circus Kate Nicholls, Chief Executive of the the capital’s proximity to Brighton has Street development will provide new arts ALMR comments: “While the uncertainties certainly been of significant benefit teaching facilities, a library as well as an that will result from the referendums when considering the number of external exhibition and dance space. outcome are unwelcome, our pubs, clubs investors who are maintaining Brighton’s and restaurants remain at the heart of our ongoing popularity and increasing numbers Brighton Marina is undergoing further society.” of branded operators. transformation incorporating approximately 850 new homes/apartments as well as Whilst Brighton is not alone in holding its The city welcomes around 8 million visitors branded restaurant operations. TGI Fridays, breath, local businesses are hoping that, in a year, a figure that dwarfs its population of Las Iguanas, Bella Italia and Casa Brasil have the short term, the weaker pound will make 273,369 (Census 2011). In 2015, Brighton recently been confirmed and add to the the UK a more affordable destination for Pier was the only non-London site that was numerous high street brands already in situ. overseas travellers and more attractive to included in Visit England’s top ten visitor UK reisdents for staycations. attractions and was visited by over 4 million The seafront, previously known as the tourists. Terraces and east of Brighton Pier, is There is no doubt that the city has a the latest area set for development. We vibrant, multidimensional scene, which is The city has numerous other attractions, understand that Soho House has agreed going from strength to strength. The city is including the Royal Pavilion, Brighton Pier, terms with Brighton & Hove City Council now home to around 1,500 technological The Lanes, North Laine, Brighton Centre, and there could also be a collaboration with companies and the Greater Brighton City Brighton Marina Leisure Complex and a local restaurant operator, as part of the Deal, plans to provide around £170 million Churchill Square Shopping Mall. redevelopment of this whole section of the of investment from central Government, for seafront. local public sector and private investment. In addition to this growing list, the British These funds will help Brighton’s Silicon Airways i360 opened on 4th August 2016. Brighton & Hove City Council have recently Beach, assisting new tech startups and The attraction comprises of an observation approved plans submitted by London & other young companies by providing advice, pod, which will travel up the cylindrical Regional Properties who have provided for support and facilities. tower to a height of 450 feet, providing the extensive redevelopment of the site which ‘passenger’ with a 360 degree view over the borders West Street, Middle Street and Alongside the development of digital coast as well as across the city and beyond. South Street. The scheme would provide a businesses in the city, the leisure and new hotel, flats, restaurants as well as bars, hospitality market continues to be at the Other major developments on the horizon and transform the area into the Brighton forefront of change and innovation. are the long awaited plans to transform equivalent of Las Ramblas in Barcelona. the Hippodrome and Dukes Lane into an entertainment hub. Developers Cathedral With the recent EU referendum, the affects Front Cover. Brighton Pier 1. www.visitbrighton.com 2. www.visitbrighton.com (credit Adam Bronkhorst) 3. Nando’s 3 Brighton Leisure Focus 2016 fleurets.com 1 Hotels Brighton & Hove seemingly shrugs to occupy some of the city’s many regency hotel on West Street (one of the primary off many of the challenges that have properties located around the historic areas leisure pitches just off the seafront), a new affected provincial cities and towns and of Brighton & Hove, such as Kemptown. 98 bedroom Indigo branded hotel in the continues to go from strength to strength, New England Quarter close to the railway demonstrated by the improving tourism As with all major cities, there is a strong station, and various extensions to existing and visitor statistics, referred to earlier in presence of corporately owned and hotels including the Old Ship, Queens Hotel this publication. This is further evidenced branded hotels at all levels of the spectrum, and My Hotel. Of course, these proposals by the city’s hotels key performance ranging from the budget operators such as may not all come to fruition, but supply is statistics, which demonstrate an upward ibis, Premier Inn and Travelodge, through to expected to increase. trend of growth in both occupancy and Jurys Inn, Hilton, Mercure and of course the average room rates, ahead of already strong famous Grand Hotel. However, unusually, Brighton & Hove continues to be a focus performance. Brighton & Hove has experienced only for hotel activity, be it sales, new lettings, relatively modest levels of new hotel refurbishment or re-branding. Examples The city’s heritage as a popular seaside development, the most recent notable include the sale last year of the Sea Spray resort ensures there is an eclectic mix of opening being the 140 bedroom ibis hotel Hotel (16 rooms), New Steine (16 rooms) hotel and accommodation provision. Smaller in 2013, prior to which were the openings which sold off a guide price of £1,650,000 independent hotels dominate the local of My Hotel and Jurys Inn around 2008. (reflecting circa £103,000 per key) and market in terms of hotel numbers, however, This looks set to change as strong trading the more recent sale of Motel Schmotel corporate and branded hotels dominate fundamentals are driving investor and (11 rooms). Russell Square (11 rooms) room supply. operator demand for increased exposure in was sold off a guide price of £795,000, the city. reflecting circa £72,000 per key. Harbour There is an enormous collection of small Hotels acquired the seafront Umi Hotel bed and breakfast businesses ranging According to AM:PM Hotels Data & (77 bedrooms) for an undisclosed price and in nature from the simple traditional Intelligence, there are live proposals Frasers Hospitality recently acquired Hotel operations that we are all familiar with, for approaching 970 new rooms in the Seattle (71 rooms) and Brighton Marina (71 through to a growing number of stylish city, in the form of either extensions or bedrooms) as part of a group acquisition boutique businesses, an example being the new developments. Examples include of 4 hotels from Swire Properties Hotels Artist Residence. These businesses tend a proposed new 133 bedroom budget Holdings. With several other hotel assets 4 Brighton Leisure Focus 2016 fleurets.com currently available for sale, including the 154 bedroom seafront Old Ship Hotel, transactional Brighton Hotels’ Performance (STR) activity looks set to continue. There have been two notable hotel investment Year 2013 2014 2015 transactions. The YHA (former Royal York Hotel) providing 51 rooms and approximately 180 bed spaces sold prior to auction off a guide price Occupancy 75.0% 76.4% 77.6% approaching £4million, reflecting a net initial yield of around 4.7%. The buyer is understood to have ADR £78.19 £82.70 £86.57 been the incumbent tenant, the Youth Hostel Association. Around a similar time, McAleer RevPAR £58.65 £63.15 £67.19 & Rushe sold the freehold investment in the Jurys Inn, New England Quarter for a reported % Change £28.2million, reflecting a net initial yield of around Occupancy 2.9% 1.8% 1.6% 5.3%. ADR 2.3% 5.8% 4.7% Transaction volumes and values in Brighton & Hove are a clear reflection of the strong operator RevPAR 5.3% 7.7% 6.4% and investor appetite for opportunities in the city, fuelled by sound demographics, a thriving tourism industry and solid underlying real estate fundamentals. For obvious reasons, hotels are and will remain a prime feature of the local property 3 market, which we expect will continue to grow, innovate and evolve over coming years. 2 1. Jupiter Hotels 2. Artist Residence 3. Motel Schmotel 4. Jurys Inn Waterfront 4 5 Brighton Leisure Focus 2016 fleurets.com 1 Pubs & Bars As with any major city, if you find yourself rent at an excess of £300,000 per annum. all aim to make the customer feel that they in Brighton any day of the week or time of are visiting an independent venue not just day, you can find a pub or bar to suit your Notable deals demonstrating the buoyant a facsimile of a company style. This is a taste. The only choice you have to make is: market for A4 sites include the 2015 conscious decision and reflects the fact that Do you want cocktails, craft beer, music, purchase of Smugglers, in Ship Street from the good and the great of Brighton tend to fabulous food, a local, a sports bar, one Enterprise Inns in an off market deal.
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