Hotels Restaurants Pubs Leisure Leisure Property Specialists Investments Birmingham Leisure Focus 2015 Birmingham’s Big City Plan published in July 2011 highlights the soaring ambition of the UK’s second city, a status disputed in some quarters. Since then there has been a stream of good news for the local economy and property markets. In a report by Start Up Britain, Birmingham is named as the UK’s most entrepreneurial region outside of London, and a “start-up hotspot”. 1 Image by Network Rail Birmingham is named as the best property investment destination in the UK, sixth best in Europe, someway ahead of London in 10th position. Introduction More companies are starting up here than is its highly skilled labour force and source in any other UK City outside of the capital, of new talent. Birmingham is the UK’s with Birmingham some way ahead of its leading centre for financial services outside rivals Manchester and Glasgow. In another of London. The city region has the largest report ‘Emerging Trends in Real Estate business, professional and financial services 2015’, produced by the Urban Land Institute industry in the country, with some 220,000 and PwC, Birmingham is named as the best people employed in over 21,000 companies. property investment destination in the UK, sixth best in Europe, someway ahead of The city has five universities and six major London in 10th position. colleges, with some 73,000 undergraduate and postgraduate students, now set to Ongoing regeneration and inward grow with the London School of Business & investment are a major factor as to why Finance looking for a new home by the end Birmingham is rated so highly. After a of 2015. Not surprisingly there is a boom £600m upgrade Birmingham New Street in demand for the development of student Station will shortly fully reopen with the accommodation! Current estimates are associated Grand Central shopping area and for the City’s population to grow by some one of the largest John Lewis stores outside 150,000 by 2031, leading to a further of London, joining the City’s existing Harvey boom in city living. Major new housing Nichols and Selfridges. Birmingham is the developments will start this year in the only UK city outside of London to achieve Broad Street/Mailbox, Edgbaston and this hat trick of flagship department stores. Jewellery Quarter areas. Major commercial property developments have recently commenced at the 9.2 acre Against considerable economic and political Arena Central site between Broad Street head winds, Birmingham City Council is and Holliday Street which will deliver on to be praised for providing the framework completion 670,000 sqft of grade A for all this in the Big City Plan. The recent offices and also at Paradise Circus between decision by Birmingham and the four Black Chamberlain and Centenary Squares, the Country Councils to create a combined first phase of which will comprise 170,000 authority in order to drive growth and sqft of grade A offices. Each will include modernise transport infrastructure is ground floor space for new restaurants and welcome, and in the latest development leisure facilities. The Snow Hill and Colmore both Coventry City Council and Solihull districts now have a new master plan and the Metropolitan Borough Council have former has already been chosen by HS2 as indicated that they may join the party. The the location for its headquarters. Midland Metro extension from Snow Hill to New Street is coming, but more innovation There is great strength in the local economy. and investment will be necessary to create Birmingham has 33,000 businesses, the a truly integrated transport system. It will largest concentration outside London; a be needed given the latest headlines. In a population that has increased in the last 10 sensational announcement HSBC is to move years by 300,000; is the youngest city in its UK bank headquarters, at least 1,000 Europe with 40% of the population under head office roles, from London to the Arena 25; and some 5,500 Londoners in their 30’s Central development. Birmingham’s second moved here last year alone, the highest of city status is surely therefore assured. any regional city. A key attraction of the city 3 Birmingham Leisure Focus 2015 1 Hotels Confidence in Birmingham city centre’s hotel The conversion of former office buildings Staycity, forming part of the Newhall Square market has seen continued improvement has provided opportunities for a number development. Former offices comprising over the recent couple of years, with of corporate brands with an Express by the Beneficial Building at the corner of some exciting new hotel developments Holiday Inn opening at Snow Hill Plaza and Paradise Street/ Suffolk Street Queensway anticipated to add significantly to the City’s an aparthotel development by Staybridge are currently being developed to provide existing accommodation offer. Recent Suites at Martineau Place on Corporation a hotel, with an announcement of the hotel industry key performance data for Street. future operator currently awaited. Hotel Birmingham demonstrates not only positive developments which involve the conversion sector trading improvements, but also the The city centre fringe with the developing and reutilisation of redundant office continued value for money available to Eastside district is the site of the 4 star buildings have contributed significantly to visitors in comparison with many Hotel La Tour and at the north-western the new hotel developments and will likely European cities. fringe, a second Hampton by Hilton Hotel have benefited from the Business Premises fronts Constitution Hill, complimenting the Renovation Allowance (BPRA) scheme, Inward investment in hotel development in brand’s offering on Broad Street. which offered tax saving incentives for the city centre is evident from the number such investment. of new openings since the beginning of A number of hotel schemes are currently 2013. These include two new Whitbread under construction, including the new 300 sites for their Premier Inn brand, firstly bedroom 4 star Park Regis Hotel at the Five at Stephenson’s Place off New Street in Ways end of Broad Street, a redevelopment close proximity to the redeveloped New of former office tower Auchinleck House; Street station, and secondly at Waterloo a 110 bedroom Adagio Hotel in Digbeth’s Street in the Central Business District. Beorma Quarter; and an aparthotel for 4 Birmingham Leisure Focus 2015 Developers’ appetite for new hotels Birmingham Hotels’ Performance (STR Global) in Birmingham city centre looks set to continue, with hotels proposed to form part of two of the City’s most significant Year 2012 2013 2014 YTD 2015 comprehensive redevelopment schemes. A new Express by Holiday Inn is planned to form part of the Arena Central development Occupancy 67.3% 69.5% 71.8% 72.2% and a replacement for the 4 star Copthorne Hotel due for demolition in 2018, is included ADR £53.49 £54.46 £58.43% £60.77 in the master-plan for the Paradise Circus redevelopment. Another more recently RevPAR £35.97 £37.87 £41.94 £43.89 announced proposal relates to a cleared site lying at the junction of Broad Street % Change and Oozells Way, where developer Regal Property Group have recently secured Occupancy -1.3% 3.4% 3.2% 5.6% planning permission for an 18 storey hotel for European operator Innside Hotels. ADR -1.5% 1.8% 7.3% 7.3% Horton Estates’ significant investment in the restoration of the former Grand Hotel RevPAR -2.8% 5.3% 10.7% 13.2% fronting Colmore Row is now at an advanced stage, announcement of a deal with a hotel operator is currently awaited. Visitors to the City, for both business and 3 leisure purposes, can therefore expect to benefit from an increasingly diverse choice of hotel options over the course of the next few years. Existing hotels will need to maintain their standards and may need to refresh their presentation, if they are to continue to appeal and meet the challenges provided by the new and growing competition. 2 1. Hotel du Vin 2. Radisson Blu 3. Hotel La Tour 4 4. Penta Hotel 1 Pubs & Bars Given its size and population, Birmingham In more recent years, inner city districts traditionally had a surprisingly compact City such as the historic Jewellery Quarter and Centre. Perhaps constrained by its inner the creative hub of Digbeth, have enjoyed a ring-road, the ‘middle of town’ essentially huge renaissance with the independent and comprised the retail stretch between innovative licensed retail operators leading New Street Station and the Law Courts in the march. Corporation Street and the Colmore Row office quarter to the northern side of St. From Alfie Bird’s or the Rainbow Venues Philip’s Cathedral. in Digbeth (pop in for a pint and end up in a 10,000 capacity music festival – yes, If such boundaries applied to the City’s pub really) to the more conventional Rose Villa scene though, they have now been well and Tavern or Lord Clifden in Hockley, there is truly smashed down, none more so than in an energy these areas haven’t seen since the recent few years. If you were to pick their industrial pomp. It won’t be stopping up a leisure guide to the City Centre today, there either, the redevelopment of Curzon it would be as geographically spread as it Street and the Eastside, in preparation would be diverse. for HS2, will see the creation of more leisure opportunities, as ‘the Gateway to The growth of Broad Street pushed the Birmingham’ pushes the City’s boundaries leisure circuit to the West, whilst China further still. Town/The Arcadian and the Bull Ring stopped turning their back on the centre and were embraced.