City of Edinburgh Tourism Accommodation Audit

In partnership with CITY OF EDINBURGH TOURISM ACCOMMODATION AUDIT June 2012 TOURISM RESOURCES COMPANY Management Consultancy and Research Services 2 LA BELLE PLACE, GLASGOW G3 7LH Tel: 0141-353 1143 Email: [email protected] www.tourism-resources.co.uk Edinburgh Tourism Action Group Tourism Resources Company Accommodation Audit June 2012 TABLE OF CONTENTS Section Page 1 INTRODUCTION 1 1.1 Background 1 1.2 Study Requirements / Approach and Methodology 2 1.3 Report Format 3 1.4 Study Participation Levels / Survey and Consulting Responses 4 2 ACCOMMODATION ESTABLISHMENT SUPPLY ACROSS THE CITY – AN OVERVIEW 6 2.1 Introduction 6 2.2 Establishments / Operations – Current Position 6 2.3 Changes in Supply 9 2.4 Number of Serviced Apartment and Self-Catering Units 11 3 OVERVIEW OF CURRENT SUPPLY (ROOMS AND BED SPACE CAPACITY) 14 3.1 Introduction 14 3.2 Rooms Availability / Capacity 14 3.3 Changes to Stock 17 3.4 Bed Space / Sleeper Capacity 22 3.5 Changes In Stock 24 4 QUALITY GRADING PROFILE OF STOCK 27 4.1 Introduction 27 4.2 QA Participation and Grading Profiles 27 4.3 Edinburgh Destination Grading Comparison 32 4.4 Conclusion on Quality 35 5 POTENTIAL NEW SUPPLY – EDINBURGH CITY 36 6 OVERVIEW OF CURRENT DEMAND FOR ACCOMMODATION IN EDINBURGH CITY 39 6.1 Introduction 39 6.2 Scale and Profile of Demand 40 6.3 Conclusion 43 7 INTERMEDIARY RESEARCH (OVERVIEW) 44 8 THE SERVICED APARTMENT AND HOSTEL SECTOR – AN OVERVIEW 46 8.1 Serviced Apartments 46 8.2 Hostels 47 9 OBSERVATIONS ON CURRENT SUPPLY AND DEMAND DYNAMICS – ISSUES AND POTENTIAL DEVELOPMENT OPPORTUNITIES – CITY OF EDINBURGH 50 9.1 Introduction 50 9.2 Audit Conclusions 50 9.3 Strengths and Weaknesses 52 9.4 Observations – Issues and Potential Investment Opportunities 54 10 FUTURE DEMAND MODELLING 58 10.1 Introduction 58 10.2 Edinburgh 2020 Technical Paper - TRC Edited Excerpts 58 10.3 Volume and Value Targets 61 10.4 Market Baseline 2011 62 10.5 Future Accommodation Requirements 65 Edinburgh Tourism Action Group Tourism Resources Company Accommodation Audit June 2012 APPENDICES APPENDIX I – INTERMEDIARY CONTACTS ................................................................................... i APPENDIX II – INTERMEDIARY CONSULTEES AND RESEARCH FINDINGS ............................. ii APPENDIX III – SERVICED APARTMENTS OVERVIEW ............................................................... xiii APPENDIX IV – KEY PROJECTS IN THE PLANNING PROCESS - CONSENTS ....................... xviii APPENDIX V – PROPERTIES APPARENTLY CEASED TRADING............................................... xx APPENDIX VI – MAIN WEBSITES REVIEWED ........................................................................... xxviii APPENDIX VII – OPERATOR SURVEY QUESTIONNAIRE EXAMPLE ........................................ xxix APPENDIX VIII – OCCUPANCY DATA (VISITSCOTLAND & TNS).............................................. xxxiii APPENDIX IX – VISITSCOTLAND ACCOMMODATION CATEGORIES.................................... xxxvi Note: Throughout the report, where appropriate, tables are ‘colour-coded’ to more easily differential those which are displaying data relating to the supply position (establishments; rooms; bed space capacity) according to when the data: A ‘Excludes Festivals Stock; B ‘Includes Festivals Stock; or represents C ‘Festivals Stock Only’. The key is as follows: Key Excluding Festival Stock Including Festival Stock Festival Stock Only Edinburgh Tourism Action Group Tourism Resources Company Accommodation Audit June 2012 TABLE OF FIGURES Figure 1 NUMBER OF ESTABLISHMENTS ................................................................................................................. 7 Figure 2 ADDITIONAL FESTIVALS-ONLY STOCK (Ests)........................................................................................... 8 Figure 3 CHANGES TO NUMBER OF ESTABLISHMENTS......................................................................................... 8 Figure 4 CHANGES TO NUMBER OF ESTABLISHMENTS......................................................................................... 9 Figure 5 CHANGES TO TOTAL NUMBER OF ESTABLISHMENTS .......................................................................... 10 Figure 6 SERVICED APARTMENT AND SELF-CATERING UNITS ........................................................................... 11 Figure 7 PLOT OF SERVICED ACCOMMODATION ESTABLISHMENTS ................................................................. 12 Figure 8 PLOT OF NON-SERVICED ESTABLISHMENTS WITH INSERT OF FESTIVALS ONLY STOCK ............... 13 Figure 9 NUMBER OF ROOMS .................................................................................................................................. 15 Figure 10 FESTIVALS ONLY ROOMS ......................................................................................................................... 16 Figure 11 NUMBER OF ROOMS .................................................................................................................................. 16 Figure 12 CHANGE IN NUMBER OF ROOMS ............................................................................................................. 17 Figure 13 PROPORTION OF ROOMS STOCK 2005 ................................................................................................... 18 Figure 14 PROPORTION OF ROOMS STOCK 2012 .................................................................................................... 18 Figure 15 CHANGE IN NUMBER OF ROOMS ............................................................................................................. 19 Figure 16 PROPORTION OF SERVICED ROOMS STOCK 2005 VS 2012 .................................................................. 20 Figure 17 PROPORTION OF NON-SERVICED ROOMS STOCK 2005 VS 2012 ......................................................... 20 Figure 18 SECTOR COMPOSITION CHANGES – ALL STOCK .................................................................................. 21 Figure 19 NUMBER OF SLEEPERS ............................................................................................................................ 22 Figure 20 FESTIVALS ONLY SLEEPER CAPACITY ................................................................................................... 23 Figure 21 NUMBER OF SLEEPERS ............................................................................................................................ 24 Figure 22 CHANGE IN NUMBER OF SLEEPERS ........................................................................................................ 25 Figure 23 CHANGE IN NUMBER OF SLEEPERS ........................................................................................................ 26 Figure 24 ANALYSIS OF SERVICED AND NON-SERVICED PROPERTIES ............................................................... 28 Figure 25 EDINBURGH ESTABLISHMENTS – GRADING PROFILE .......................................................................... 29 Figure 26 ANALYSIS OF GRADED ROOMS ............................................................................................................... 29 Figure 27 ANALYSIS OF ROOMS BY STAR GRADING CITY OF EDINBURGH......................................................... 30 Figure 28 SERVICED ACCOMMODATION STOCK PROFILE OF ALL ROOMS BY GRADING ................................ 30 Figure 29 NON-SERVICED ACCOMMODATION STOCK PROFILE OF ALL ROOMS BY GRADING ........................ 31 Figure 30 ANALYSIS OF GRADED BED SPACE CAPACITY ..................................................................................... 31 Figure 31 ANALYSIS OF BED SPACE CAPACITY BY STAR GRADING CITY OF EDINBURGH .............................. 32 Figure 32 AVERAGE GRADING SCORES BY ACCOMMODATION TYPES – DESTINATION Vs NATIONAL POSITION [PROPERTIES] ........................................................................................................................... 33 Figure 33 AVERAGE GRADING SCORES BY ACCOMMODATION TYPES – DESTINATION Vs NATIONAL POSITION [PROPERTIES] ........................................................................................................................... 34 Figure 34 KEY PROJECTS IN THE PLANNING PROCESS ........................................................................................ 37 Figure 35 RELATIONSHIP BETWEEN PLANNING CONSENTS, CONSTRUCTIONS AND COMPLETIONS ............. 38 Figure 36 OPERATIONS CEASED TRADING / CHURN SINCE 2005 ......................................................................... 38 Figure 37 ROOMS PARTICIPATING IN PERFORMANCE DATA SURVEY ................................................................. 39 Figure 38 CITY ROOM OCCUPANCY PERCENTAGE ................................................................................................ 40 Figure 39 CITY DEMAND MIX (2011) .......................................................................................................................... 41 Figure 40 AVERAGE ACHIEVED ROOM / UNIT RATE (ARR) .................................................................................... 42 Figure 41 AVERAGE ACHIEVED ROOM RATE (ARR) 3 / 4 STAR COMPARISON ............................................. 42 Figure 42 HOSTEL OPERATIONS APPARENTLY CEASED TRADING ...................................................................... 47 Figure 43 HOSTEL SUMMER ONLY STOCK............................................................................................................... 48 Figure 44 HOSTEL STOCK AVAILABLE YEAR-ROUND

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