A study of hotels (2007/8) has been undertaken in conjunction with Hampshire County Council and Tourism South East to:

• Provide a detailed evidence base to inform the Local Development Framework (LDF).
• Provide recommendations on policy formulation, locational strategy and inward investment activity.
• Support hotel investment decisions and marketing.

The study has been undertaken both on a countywide basis and a more detailed study for the Borough (both of which are available to download below), which involved the following:

• Analysis of hotel performance data from interviews of hotel managers.
• Review planning policies and other strategies towards hotel development, to identify how the town may develop over the LDF period and what might drive demand for new hotels.
• Projections of the hotel market to 2026.
• Consultation with hotel developers/operators to test interest levels.
• Analysis of the market potential for new hotel development by standard and location, together with suggested actions to secure the development.

The following trends have been highlighted from the studies:

• Three/four star hotels achieve 68.8% occupancy, which is below the national average and reflects the low levels of weekend trade.  The market is heavily biased towards the business sector and there are high levels of denied business on Tuesdays and Wednesdays.
• Budget hotels achieve 86% occupancy, which is above the national average, and is particularly strong mid-week with little denied business.
• Longer-terms potential for a three/four star hotel of 150 rooms and more in the short-term through hotel extensions (being provided through the Hampshire Court Hotel extension of 56 bedrooms).
• Immediate potential for a further budget/upper budget hotel, an additional one by 2016 and a further hotel in the longer term.
• Potential for development of quality pub rooms in the town and wider area, but little scope for a boutique hotel due to a perceived weak leisure offer.
• Potential interest from 13 national hotel brands in developing a hotel, particularly a budget/upper budget offer, with some interest in a three/four star hotel, with the majority interested in a town centre location for proximity to main centres of custom or linked to existing business parks or arterial routes.
• Obstacles to development include availability, deliverability and affordability of sites, poor image of the town, a weak leisure market and relatively low room rates for higher end hotels.
• Basing View is identified as the strongest location for a new hotel, linked to the regeneration proposals.

Documents