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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
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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
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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.
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1. Jupiter Hotels
2. Artist Residence
3. Motel Schmotel
4. Jurys Inn Waterfront
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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. The support the places that appeal to them and with a great garden, roof terrace or one on price paid was quoted as £2,200,000. stay loyal for many years. the beach? However, to find a truly unique operation, The independent beer offering is a market You can also choose from a large range of be prepared to spend some time exploring which is also gathering pace with the licensed bistros and cafés. Factor in bars as the backstreets in order to stumble across a likes of Laine Pub Company brewing their well as hotels, and you really are spoilt for new favourite bar. owns ales and Indigo joining the craft beer choice. The options are almost endless. revolution and exploring micro brewing. Brighton has long been known as a place Others include the Craft Beer Company, Of course, as with most cities, there is the for creativity, independence and business Brighton Bier Company, Liberty Beer, usual representation of national brands acumen; and many companies, some who BrewDog and Bison Beer, plus many other such as Wetherspoons, Yates, All Bar One, started a long time ago, thrive within the similar operators looking for suitable small Loungers, Be At One, Pitcher & Piano, city today. Perhaps the most famous of bar operations/off sales around the city. BrewDog, Lloyds No.1 etc. The King & these is the Laine Pub Company, which Queen, one of Brighton’s most recognised now has approximately 48 outlets, mostly Independent cocktail bars have also landmarks and largest pubs, which fronts located in and around Brighton & Hove. recently made a big hit in the city with the main route from the seafront out of Indigo, a relative new comer, now has many bistros now following the leaders and Brighton, recently sold at auction for £4.1 around 20 outlets with other local multiples offering their own versions of the classic million, reflecting a yield of 7%. The Grade such as Pleisure maintaining popularity over cocktail menu. Independent operators II Listed building is operated by Greene the years. They all tend to have a common include Shuffle Bar & Kitchen, the elegant King which holds the lease until 2034 with theme, but one you may not expect - they Plotting Parlour, Black Dove, Bar Valentino
6 Brighton Leisure Focus 2016 fleurets.com and Twisted Lemon. that customers will come and find them if the offer is good and the venue is attractive, A lack of A4 free of tie units in the city has and they even enjoy the fact that the bar seen many look to acquire A3 units with is tucked away. You may think that with so more flexible licensing to allow drinking many independents there is not enough 1. www.visitbrighton.com The Cricketers without food or limited food offer. With room, but Brightonians support their local (credit Adam Bronkhorst) little or no movement in the most desirable businesses and those that are successful, areas, operators seeking representation tend to be around for many years. 2. The King & Queen in the city are also looking further afield in areas that, in the past, were considered 3. Mash Tun less salubrious, but are now positioned for regeneration. Examples include parts of 4. BrewDog London Road, Preston Street and the Hove end of Western Road. Operators are finding
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3 4 7 Brighton Leisure Focus 2016 fleurets.com Restaurants For the corporate/branded operators, lease of 20 years in order to secure a prime Shed as well as Terre A Terre. Brighton represents a key city for location close to Carluccio’s). expansion. Many other operators are Within Brighton’s independents there are also expressing interest and searching for Network Rail has recently unveiled a number of well established offerings, suitable sites, with some willing to pay ambitious plans to update Trafalgar exclusively serving burgers: Cogging’s & Co, significant premiums for the right space. Street Arches below the station with a Burger Revolution, Burger Kult and Burger redevelopment to provide a modern triple Bros. On the branded national operator Established branded operators include ASK, glazed restaurant unit in the heart of the side we have Meat Liquor (although not Café Rouge, Bella Italia, Pizza Express, Itsu, trendy North Laine area of the city. exclusively burgers) and Smashburger. Bill’s, Wagamama, Las Iguanas, Yo Sushi etc, Gourmet Burger Kitchen and Five Guys will and the list is constantly expanding. Recent Brighton is proud of its reputation for be arriving shortly in the Marina. new arrivals include Wahaca (who, acquired groundbreaking independents and many the former Strada site for a premium of of these have a loyal following. Gingerman These home grown independents can over £400,000), Polpo (who purchased their Group was set up in 1998 and now more than hold their own alongside first acquisition outside London through comprises of Gingerman, Ginger Pig, Ginger the corporates; and whilst the branded Fleurets off a guide price of £150,000), Dog and Ginger Fox. Other stand out operations will always get their custom, 1847 (an exclusively vegetarian restaurant) independent operators are Lucky Beach, Brightonians are a loyal bunch and will and the most recent opening, Franco Manca The Set, 64 Degrees, Plateau, Silo, Chilli endlessly support the independents. (who acquired a former retail unit on a new Pickle, 24 St Georges, Salt Room and Coal
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1. Coggings Fleurets are aware of a number of independents Not only do these have regular venues around now seeking to acquire their second site within the the city but also feature within some our best 2. La Choza city with ambitious plans to take their brands to loved pubs too. Local operators are offering their London, reversing past trends. kitchens to startups on a franchise basis rather 3. Wahaca (credit Adam Scott) than have their in-house food operation and this There are a growing number of food bloggers who provides a useful stage for small independents. 4. The Salt Room keep operators new and old on their toes as well With premiums and rents becoming prohibitive for (credit James French Photography) as buoyant Brighton focused Twitter conversations, some, this is an affordable way to get on the ladder. scrutinizing and sharing experiences. Example pop-up operators who have flourished To enhance the ever increasing food trade in within pubs around the city are:- the city, there are various food markets such as Brighton Foodies Festival, Brighton & Hove Food • La Choza @ Hare & Hounds & Drink Festival as well as awards to be fought for • Flank @ The Cow such as the Brighton Food & Drink Awards. These • Little Blue Smokehouse @ Seven Stars all serve to highlight and promote the best of home • Orange Buffalo @ The Joker grown talent. • Big Bang Burrito @ Sidewinder • Bar-B-Q Shack @ Worlds End Not unique to Brighton but certainly an area which has taken off in the last year or so are pop-ups.
9 Brighton Leisure Focus 2016 fleurets.com Leisure & Nightclubs Brighton is considered to be one of the to open its fourth site on the south coast theatres such as the Marlborough and the top ten leisure destinations in the UK, with and Casual Dining Group are taking two Nightingale Room showing cutting edge a vibrant, dynamic and evolving leisure units for its Bella Italia and Las Iguanas shows in intimate performance spaces. scene. From the arts scene to music, food brands. Five Guys have also secured a and drink to theatre and fringe events, site. Part of the largest marina complex in Two new exciting leisure attractions in the variety of venues and events on Europe extending to 127 acres, the new the city are the i360 and Brighton Zip. At offer across the city throughout the year restaurants will join exiting national brands, 162 metres high, with an observation pod provides consumers with a vast choice of Café Rouge, Coast to Coast, Zizzi, Nando’s, rising to 138 metres, British Airways’ i360 entertainment. Prezzo, Frankie & Benny’s, JD Wetherspoon is the world’s first vertical cable car. Having and Pizza Express. opened on 4th August, the attraction Perhaps the most recognisable landmark includes a beachside visitor centre with of old is Brighton Pier, which was recently Instantly recognisable and amongst the a 400 seat restaurant, a shop, tea rooms, acquired by Luke Johnson’s Eclectic Bar major attractions is the Royal Pavilion an exhibition, kid’s play zone, as well as Group for £18m. Johnson is best known which is an exotic palace with a colourful conference and events facilities for up to in the industry as founder of Strada and history. Built as a seaside pleasure palace 1000 guests. owns Dirty Blonde, Lola Lo and Coalition, for King George IV, this historic house as well as having local interest in operators mixes Regency grandeur with a visual Brighton Zip is the newest attraction set to Laine Pub Company and Small Batch Coffee style of India and China. In 1815 George, be unveiled on the seafront this summer, Company. by now Prince Regent, hired the eminent replacing the Brighton Wheel. Paramount architect John Nash to redesign the building Entertainment applied to replace the Just over a mile from the city centre is in the Indian style. The Pavilion is open Wheel, which was set up in 2011. With two Brighton Marina which has become the throughout the year and has a number of 300 metre long zip wires, thrill seekers will largest marina complex in Europe. It can museums and exhibitions as well as being whizz down a cable from a 20 metre tower be reached by bus, a 20 minute walk from used for weddings. to a landing area on the beach. A jump zone Brighton Pier or in the summer months via will also feature, where people could leap the historic Volks Electric Railway along If it’s theatres and cinemas you are after, 20 metres to a safe landing area. Trading Madeira Drive. This year there is renewed then every night is show night as the city year round the Brighton Zip will be the activity with further development within plays host to some of the best theatre and largest such ride in Sussex and represent a the marina. The West Quay Development entertainment in the business. The Theatre £1.7million investment. once complete, will include seven new Royal offers a programme of theatre shows restaurants and more than 850 apartments. throughout the year, the best theatrical line The Brighton club scene is equally diverse Developers, Brighton Brunswick, have up across the South Coast. and extensive and the most notable clubs completed lettings of four units in phase are Lola Los, Dirty Blonde, The Haunt, one of West Quay. TGI Fridays has taken Alternative theatres in Brighton include Funfair, Green Door Store, Funky Fish Club, a 25 year lease which will be its first the award-winning Brighton Komedia and Patterns, Shooshh, Casablanca, Revenge restaurant in Brighton. Casa Brasil is set Brighton Dome, as well as lots of fringe and the Arch.
1 1. www.visitbrighton.com Komedia (credit Adam Bronkhorst) 2. www.visitbrighton.com Brighton Pavilion (credit Adam Bronkhorst) 10 Brighton Leisure Focus 2016 fleurets.com 2
11 Brighton Leisure Focus 2016 fleurets.com Our areas of expertise
> Buying & Selling – Our experienced local teams > Taxation, CPO, Consultancy and Litigation – together with our extensive database of buyers give specialist advice if required. you the best chance of achieving a sale. > Rating – Rates can be one of the highest outgoings > Valuations – We can help if you are purchasing of a business. Fleurets expert rating team can let you a property, considering refinance or need an know if you are paying too much independent valuation for other purposes. > Landlord & Tenant – Fleurets is the market leader > Expert Witness – Our Chartered Surveyors are in Rent Review negotiations across the hotels, frequently appointed as Expert Witness in a range of restaurants, pubs and other leisure property sectors. disputes, including the preparation of evidence for use at High Court, Lands Tribunal > Viability Studies – Considering a change and Arbitration. of use? We advise owners, developers and local authorities with regard to business viability.
Established for nearly 200 years, Fleurets is the largest firm of Chartered Surveyors to specialise nationally and exclusively in the sale and valuation of hotels, restaurants, pubs and leisure property.
Our team for Brighton Fleurets South T: 01273 429500 Heversham House E: [email protected] 20-22 Boundary Road, Hove, East Sussex, BN3 4EF
Nick Earee Divisional Director T: 01273 429500 M: 07836 541790 E: [email protected]
Kate Dowd Senior Negotiator T: 01273 429500 M: 07798 716 113 E: [email protected]
Rosie Hallam Senior Surveyor T: 020 7280 4700 M: 07786 193 771 London 0207 280 4700 E: [email protected] North West 0161 683 5445 North 0113 234 0304 Midlands 0121 236 5252 West & South Wales 0117 923 8090 South 01273 429500 East Anglia 01787 378050
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