Detailed Product Description

Contact us for the full 120 page detailed report for this development. Expected operating date is January 2011

The picture shows the site is in a prominent position with good road links to the Docks and five minutes walk to the city centre. The current building is due to be demolished.

DEMAND BY MARKET SEGMENT
Demand for hotel accommodation from the   local corporate   sector is on a modest scale and will vary in line with the economic climate and the   successful delivery of local regeneration projects. Price and location are important factors to this   market when choosing hotels, and companies report a preference for city centre hotels. However   the proximity of the site to local business and industrial parks may prove beneficial. RGA feels th  at a competitively-priced hotel with a national brand and modern product would be   appealing to this market.  We expect the project to achieve above fair market share.
 
Demand from the   transient commercial sector   is reasonably substantial,   primarily due to Hulls connection to the continent via the Ferry Port   and the function as a sub-regional centre. Demand will reflect activity at the port and wider ec  onomic conditions. RGA suggests that demand from this sector would be for quality, budget accomm  odation with good car parking facilities, and on major transport routes. The project hotel does not have a premium location but its pricing policy and national branding should ensure that it attract  s significantly above fair share from this market.
 
Demand from the   conference     and meeting sector   is expected to be limited and will grow in line with economic indicators.  Relatively few local companies reported use of hotels for meetings and events and there is already a large supply of   conference facilities in Hull. Conversations with national conference organisers and the local confer  ence bureau suggest that Hull is in demand for larger events, and that there is requirement   from this segment for quality accommodation in the city. RGA suggest that a branded hotel would s  it well with this market and the proposed hotel should consider partnering with some of the non-residential conference venues in the area to capitalise from this market. This should enable the project to achieve just above fair market share.
 
Accommodation demand from the   independent, transient tourist   market is expected to be
substantial and to grow in line   with overall tourism performance. Hull is not a major tourism city, but has some attractions, such as the Deep and   the KC Stadium and Gemtec Arena,  which will help to generate demand it is   however an important gateway to other popular tourist areas. The proposed hotel is not in a prime tourism area, but because of its national brand, price point and proximity to some of the city centre attrac  tions and key transport routes,  RGA expects the project hotel to achieve significantly abov  e fair market share from this segment.
 
Demand from the   short break and special interest   holidays segment is also expected to be of a reasonable scale and to grow in line with overa  ll tourism performance. Local events, such as the Jazz Festival and the Maritime Festival will help   drive this demand.  Given its location close to the city centre and major transport arteries, and   its proximity to the event venues, RGA expects the hotel will achieve a little above fair market share from this segment. Should the casino development at Clarence Mill come to fruition it would provide a major boost to the project hotel(which is not assumed in our projections).
 
Traditional   Coach and tour   operators indicate almost no demand for hotel facilities in Hull. 
Those that will visit the area will likely choose more out-of-town accommodation nearer to the
traditional tourism hotspots. Given the discounting   required to secure this type of business, and the full service facilities required, RGA feels that   this segment isunlikely to form a key demand driver. For the traditional coach andtour market we   expect that the proposed hotel would achieve only asmall fraction of market share.

 
Potential demand from   other segments   such as social functions, weddings, graduations, visiting friends and relatives (VFR) etc. is expected to be   good. VFR tourism to the area is strong and the university is also likely to generate a number   of bed nights. The national brand and price points are likely to be attractive to this market and we   expect it to achieve a little above market share.  
 
 
2.4 ROOMS PERFORMANCE
 
Projected room occupancies for the project for the years commencing 1st January are:
 
2011 55.6%
2012 55.8%
2013 58.0%
2014 59.7%
2015 61.5%
 
The projected double occupancy rate is 49.2%
 
The projected mix of business is:
 
Corporate 21.7%
Transient Commercial    29.6%
Conference   8.1%
Independent Leisure    19.0%
Short Breaks and Special Interest  11.9%
Coach and Tour    1.0%
Other 8.7%

The projected achieved average room rate, b  ased upon a weekday rack rate of £59.95 and
week end of £49.95 (inclusive of VAT) for the project, in 2009 values, is £43.48 net of VAT.

Contact us for the full 120 page detailed report for this development