ASHFORD
HOTEL MARKET
FACT FILE
March 2011
INTRODUCTION
Ashford is undergoing transformational change, having been identified by
Government in the Sustainable Communities plan 2003 as one of four areas to deliver
significant levels of new housing and jobs in the South East. The current Core Strategy
which provides housing and jobs targets to 2021 identifies the town of Ashford
growing by 20,350 homes and 17,500 jobs between 2001 and 2021, increasing the
70,000 population in the town significantly over this period. Plans also include the
potential for over 2 million sq ft of commercial office development to come forward
as part of the town’s growth.. The £2.5 billion development strategy focuses on
revitalising and transforming the town centre through the development of new retail,
business, housing, cultural, tourism and education facilities. The town centre will
accommodate an additional 9,000 new jobs, 68,350 sq m of retail and leisure
floorspace and 94,880 sq m of new office floorspace. Key schemes include the 6.65
acre Elwick Place development in the town centre core, to be developed by
Stanhope; the £7.56m Ashford Gateway Plus iconic building housing a new library on
which work has now started; and a dynamic new commercial quarter and focus for
large scale office space close to Ashford International Station. In addition to the
town centre regeneration and expansion, 6,625 new jobs will be created through the
development of key business parks in the Greater Ashford urban area, including
Eureka Park where there are proposals for 1.4m sq ft of primary office space. Two
major urban extensions will provide for up to a further 13,500 new dwellings, and
major transport schemes will facilitate access, including a new motorway junction
10A on the M20, new mixed use link road schemes such as Victoria Way, and the
development of SMARTLINK, a bus rapid transport system.
All of these developments are likely to generate a significant increase in demand for
hotel accommodation in Ashford from the corporate market, contractors, Eurostar
passengers and people visiting friends and relatives, attending weddings and family
parties and going into the town centre for nights out. This growth could create
opportunities for hotel development in Ashford over the next 5-10 years.
Ashford Hotel Market Fact File
1
March 2011
INTRODUCTION
The Ashford Hotel Market Fact File has been compiled to assist hotel companies,
developers and investors in assessing hotel investment opportunities in Ashford. It
provides the latest available information on:
•
The current hotel supply in Ashford;
•
Recent hotel development;
•
Current hotel development proposals;
•
Recent hotel performance;
•
The key markets for hotel accommodation in Ashford;
•
The prospects for growth in demand for hotel accommodation and what will
drive this.
All of the data included in the Fact File is drawn from the Kent Hotel Futures Study
undertaken by consultants Hotel Solutions in late 2010/early 2011.
For further information and contacts or to discuss your requirements contact:
Andrew Osborne
Economic Development Manager
Ashford Borough Council
Civic Centre
Tannery Lane
Ashford
TN23 1PL
Tel:
01233 330310
Email: Andrew.Osborne@ashford.gov.uk
Ruth Wood
Research & Development Manager
Kent County Council
Invicta House 2nd Floor
County Hall
Maidstone
Kent
ME14 1XX
t.01622 696907
e. ruth.wood@kent.gov.uk
Ashford Hotel Market Fact File
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March 2011
INTRODUCTION
Current Hotel Supply
•
There are currently 10 hotels in Ashford with a total of 785 letting bedrooms. This
includes the Eastwell Manor 4 star country house hotel. Ashford’s hotel supply is a
mix of 4 star, 3 star and budget hotels. The town has no boutique, upper-tier
budget or 2 star hotels or serviced apartments.
CURRENT HOTEL SUPPLY – ASHFORD – MARCH 2011
Standard
5 star
Boutique
4 star
4 star Country House Hotel
3 star
2 star
Upper-tier Budget1
Budget
Non-inspected
Serviced Apartments
Total Hotels
Hotels
Rooms
% of
Rooms
0
0
1
1
2
0
0
4
2
0
10
0
0
179
60
195
0
0
306
45
0
785
0
0
22.8
7.6
24.9
0
0
39.0
5.7
0
100.0
Notes:
1. Brands including Holiday Inn Express, Ramada Encore and Hampton by Hilton
2. Apartments that are let for short stays and serviced on a daily basis, either purposebuilt serviced apartment complexes/ buildings or residential apartments that are let
on a serviced basis
ASHFORD - HOTELS – MARCH 2011
Establishment
Ashford
Grade
Ashford International
Eastwell Manor
Holiday Inn Ashford Central
Holiday Inn Ashford North
Premier inn Ashford Central
Premier Inn Ashford Eureka Park
Premier Inn Ashford North
Travelodge Ashford
The Conningbrook, Kennington
The Croft, Kennington
4 star
4 star Country House
3 star
3 star
Budget
Budget
Budget
Budget
n/a
n/a
Ashford Hotel Market Fact File
2
Rooms
179
60
103
92
60
74
60
112
29
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March 2011
INTRODUCTION
Changes in Supply 2005-2010
•
The only addition to the Ashford hotel supply in the last 5 years has been the
Premier Inn Ashford Eureka Park, which opened in February 2009 with 74
bedrooms.
•
The Ashford International underwent an £11 million refurbishment programme in
2007 following its acquisition by Q Hotel.
•
None of the town’ hotels have expanded in the last 5 years. A number have
completed significant refurbishment programmes.
Proposed Hotel Development
•
A planning application for a 100 bedroom hotel to the south of the Ashford
Designer Outlet Centre is currently pending. There are no other firm plans or
pending applications for hotel projects in Ashford.
Ashford Hotel Market Fact File
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March 2011
ASHFORD HOTEL PERFORMANCE & MARKETS
Summary
The demand for hotel accommodation in Ashford is highly seasonal, leisure
•
driven and low-rated. People stopping overnight en-route to Eurodisney on
Eurostar and group tours are key markets. Corporate demand is highly price
competitive. These factors combine to result in relatively low hotel occupancies
and achieved room rates for the town’s hotels at present.
Occupancy and Achieved Room Rates
Average annual room occupancies and achieved room rates for hotels in
•
Ashford are estimated as follows for 2008, 2009 and 2010.
ASHFORD HOTEL PERFORMANCE 2008-2010
Standard of Hotel
UK Provincial UK 3/4 Star Chain Hotels1
Ashford 3/4 Star Hotels2
England Budget Hotels3
Ashford Budget Hotels
Source:
Average Annual
Room Occupancy
%
2008 2009
2010
70.2
68.2
69.6
66
68
64
71.5
64.9
n/a
n/a
n/a
68
Average Annual
Achieved Room Rate4
£
2008
2009
2010
72.91
68.65
67.80
50.40
50.80
48.30
48.99
47.97
n/a
n/a
n/a
46.60
Kent Hotel Futures, Hotel Solutions – March 2011
Notes
1.
2.
3.
4.
Source: TRI Hotstats UK Chain Hotels Market Review
Excluding Eastwell Manor. As a 4 star country house hotel this hotel trades very differently to
the other 3/4 star hotels in Ashford. The inclusion of this hotel in the sample would thus give
a skewed result
Source: TRI Hotstats 2010 – United Kingdom Hotel Industry Report
Net of VAT and breakfast
Ashford Hotel Market Fact File
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March 2011
ASHFORD HOTEL PERFORMANCE & MARKETS
•
Key observations on Ashford hotel occupancy and achieved room rate
performance over the last three years are as follows:
3/4 Star Hotel Performance
o
Room occupancies and achieved room rates for Ashford’s 3/4 star hotels
are well below national averages and below the levels achieved by the
town’s budget hotels in some cases.
o
There is relatively little difference in terms of occupancy performance
between the town’s 3 and 4 star hotels. One 3 star hotel trades at slightly
lower levels of occupancy. There is a more marked difference in terms of
achieved room rate performance but no hotel is achieving an average
room rate anywhere near approaching the national 3/4 star average.
o
Ashford 3/4 star hotel occupancies and achieved room rates increased
slightly in 2009 as a result of demand from contractors involved in the High
Speed 1 project but dropped back in 2010 following the completion of
this project. One 3 star hotel reported a drop in occupancy in 2009as a
result of a downturn in group tour business and the impact of the opening
of the Premier Inn at Eureka Park.
Budget Hotel Performance
o
Occupancies and achieved room rates for Ashford’s budget hotels are
broadly in line with national averages but below the levels achieved by
budget hotels in some other parts of Kent. Most of the town’s budget
hotels trade at very similar levels of occupancy. One trades at a much
lower level of occupancy. Budget hotel occupancies dropped in 2009 as
a result of the opening of the Premier Inn Eureka Park but recovered in
2010.
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March 2011
ASHFORD HOTEL PERFORMANCE & MARKETS
Seasonality
•
Hotels in Ashford achieve high occupancies and frequently turn business away
both during the week and at weekends between July and September and
during school half term holidays. Friday and Saturday occupancies are also
strong in May, June, September and October. Occupancies are much lower
outside these times.
Midweek/Weekend Occupancies
•
Estimated weekday and weekend occupancy for Ashford hotels in 2010 are
summarised in the table below.
ASHFORD HOTELS - WEEKDAY/ WEEKEND OCCUPANCIES – 2010
Standard
3/4 Star Hotels
Budget Hotels
Source:
Typical Room Occupancy
%
Mon-Thurs
Friday
Saturday
66
64
86
69
65
75
Sunday
37
52
Kent Hotel Futures, Hotel Solutions – March 2011
Ashford Hotel Market Fact File
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March 2011
ASHFORD HOTEL PERFORMANCE & MARKETS
Midweek Markets and Trends
•
Key midweek markets for Ashford hotels are:
o
Corporate demand associated with Ashford companies;
o
Demand(primarily for budget hotel accommodation) from contractors
working on construction projects and at the Dungeness and Sellinge power
stations;
•
o
Families travelling to Disneyland Paris on Eurostar;
o
Group tours during the summer months.
Corporate demand is largely project- related and thus unpredictable. The town’s
corporate market is highly price competitive. Ashford hotels also attract demand
from businessmen travelling on Eurostar and some demand from companies
based in Tenterden.
•
Residential conferences are an important midweek market for the Ashford
International. It attracts international conferences and some larger conferences,
which also generate business for other hotels in the town. Residential conferences
are a very minor midweek market for Ashford’s 3 star hotels.
•
Group tours are a key midweek market for Ashford’s 3 and 4 star hotels between
May and September. They predominantly attract German, Dutch and Belgian
tours and some UK tours for either a 2-4 night stay or a single night stop-over enroute to or from the Continent. Group tour rates are typically between £30 and
£40 per person per night for dinner, bed and breakfast.
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ASHFORD HOTEL PERFORMANCE & MARKETS
•
In terms of trends in midweek demand:
o
Residential conference business has reduced during the recession and lead
in times for residential conference bookings have significantly shortened.
o
The length of corporate stays has reduced and the local corporate market
remains unpredictable and highly competitive. Hotels have not increased
their corporate rates for the last 3 years.
o
Contractors working on the High Speed 1 project generated significant
demand for one hotel between 2007 and 2009. This demand ceased in
2010 following the completion of the project.
o
Group tour business increased for at least 2 hotels in 2010.
Weekend Markets and Trends
•
Families travelling to Eurodisney on Eurostar are the main weekend market for
Ashford’s budget hotels and a key source of weekend demand for the town’s 3/4
star hotels.
•
Other weekend markets are:
o
People attending weddings and functions at the town’s 3 and 4 star hotels
and other wedding venues such as Leeds Castle, Eastwell Manor and Port
Lympne;
o
Group tours (for 3/4 star hotels);
o
Leisure breaks (for 3/4 star hotels);
o
People visiting friends and relatives (primarily for budget hotels).
o
Corporate arrivals on Sunday nights;
o
Contractors staying over the weekend and/or arriving on Sunday nights
(primarily for budget hotels)
•
Leisure break demand is relatively limited for Ashford hotels. Key draws for leisure
break stays are Leeds Castle, the Ashford Designer Outlet Centre, Canterbury and
gardens. The Ashford International has successfully developed a spa break
market. The town’s hotels drive much of their leisure break business through
special offers and added value packages.
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March 2011
ASHFORD HOTEL PERFORMANCE & MARKETS
•
Events at Port Lympne generate some weekend demand for Ashford hotels.
•
Demand has generally held or grown from all leisure markets over the past 3
years.
Denied Business
•
Ashford’s 3/4 star hotels occasionally deny midweek and weekend business
during the peak summer months but not that frequently and not usually to any
significant degree.
•
The town’s budget hotels consistently turn away reasonably significant levels of
business on Fridays and Saturdays between May and early September, seven
nights a week in July, August and early September, Saturdays in April and
October and all week during the February and October school half term holidays
Prospects for 2011
•
Most Ashford hotel managers expect to see occupancy and achieved room rate
growth in 2011as a result of stronger corporate demand, targeted growth in
residential conference business for one hotel, an increase in group tour rates and
strong demand from the Open Golf at Sandwich.
Ashford Hotel Market Fact File
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March 2011
PROSPECTS FOR GROWTH
Strategic Context
•
Ashford is undergoing transformational change, having been identified by the
Government’s Sustainable Communities Strategy 2003 as one of four growing
areas to deliver significant levels of new housing and jobs in the South East. The
current Core Strategy which provides housing and jobs targets to 2021 identifies
the town of Ashford growing by 20,350 homes and 17,500 jobs between 2001 and
2021, increasing the 70,000 population in the town significantly over this period.
Plans also include the potential for over 2 million sq ft of commercial office
development to come forward as part of the towns growth.
•
The £2.5 billion development strategy focuses on revitalising and transforming the
town centre through the development of new retail, business, housing, cultural,
tourism and education facilities and open spaces, but also on creating new
neighbourhoods through the development of major urban extensions to the town
and improvements to Ashford’s infrastructure, particularly transport.
•
Ashford Town Centre is at the heart of the town’s expansion and the economic
driver that will help provide a strong commercial centre. The town centre is also
to increasingly be a major focus for employment, and will accommodate an
additional 9,000 new jobs as well as 3,100 new dwellings by 2021. The high speed
domestic and international rail services now available will facilitate this. 9,000
new jobs will require 68,350 sq m of new retail/leisure floorspace, 94,880 sq m of
new office floorspace and new education facilities within an expanded town
centre area.
Ashford Hotel Market Fact File
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March 2011
PROSPECTS FOR GROWTH
•
The Ashford Town Centre Area Action Plan directs the development of the town
centre into a series of quarters, each with their own character, function and role:
o The Town Centre Core
Focal point for retail, entertainment, tourist and cultural activity, with
complimentary office and residential uses. Mixed use schemes will
increase the vitality of the area and the resident population.
Key sites include:
-
Elwick Place – at 6.65 acres, the most significant town centre site,
particularly given its location between the station and the town
centre, with potential for 27,000 sq m of floorspace plus
residential. A development agreement has been signed with
Stanhope. The scheme will include retail, leisure, business and
residential uses, with potential to include a town centre hotel,
and the creation of 500 new jobs.
-
Park Mall – for mixed use retail, office and leisure.
-
Vicarage Lane Car Park – comprehensive redevelopment for a
mix of residential, retail, leisure, office and cultural uses.
-
Elwick Rd/Station Rd – predominantly for office use with
commercial uses at ground floor level.
-
Ashford Library – a prominent site for the delivery of the new
£7.56m Ashford Gateway Plus, an iconic building that will house
a new library, registry and community facilities. Construction is
due to be completed in Summer 2011.
-
Godington Way – allocated for residential town house
development.
Ashford Hotel Market Fact File
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March 2011
PROSPECTS FOR GROWTH
o
The Commercial Quarter
The dynamic new business sector of the town, stimulating major
investment opportunities in new large scale office space close to
the station. Restaurants, bars and some residential will support
commercial development here. This quarter will play a leading role
in meeting new jobs targets, with 55,000 sq m of new office
development proposed 2,500 sq m of small scale retail and leisure,
and 150 dwellings.
o
The Civic Quarter
This quarter incorporates the Civic Centre and the Stour Leisure
Centre. Development here will focus on Tannery Lane and Station
Rd, and will be less intensive office, community, retail and leisure
uses.
o
The International Station Quarter
A key gateway and transitional area in relation to established
residential areas and the Designer Outlet Village. Office uses are
identified as the most appropriate use here, given the rail services
and proximity to the Commercial Quarter, with complementary
retail, leisure and residential. A good business class hotel is also
sought here. This quarter includes the former B&Q site.
o
The Southern Expansion Quarter
Predominantly residential, but also incorporating the new Learning
Campus and improved linkages, including Victoria Way, a new
road connecting the International Station directly to South Ashford
and the A28.
Ashford Hotel Market Fact File
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March 2011
PROSPECTS FOR GROWTH
o
The Residential Transition Quarter
An area of transition between the high levels of new development
in the town centre core and the residential areas to the north and
west. Some mixed use development will be promoted here, but
limited in scale.
•
A further 6,625 new jobs will be accommodated on business parks outside the
town centre on 5 key sites:
o
Sevington, close to the proposed junction 10A, that will provide for larger
scale employment development not suited to mixed use areas;
o
Eureka Park, just off junction 9, where 46ha of land is allocated for 1.4m sq
ft of primary office space. 300,000 sq ft has been developed to date.
o
Waterbrook Park mixed use area, 15ha allocated in the Core Strategy;
o
Orbital Park, off junction 10, a mixed use site with office, industrial and
distribution uses on 141 acres;
o
Henwood – an extension to the existing industrial estate
Ashford Hotel Market Fact File
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March 2011
PROSPECTS FOR GROWTH
1
Eureka Business Park
2
Waterbrook Business Park
3
Sevington Business Park
4
Henwood Business Park Extension
5
Orbital Park
6
Elwick Place
Ashford Hotel Market Fact File
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March 2011
PROSPECTS FOR GROWTH
•
There are 2 urban extensions proposed for Ashford, with the potential for a third to
be identified in future planning documents:
o
Development at Cheeseman’s Green/Waterbrook, to the south east of
Ashford, will deliver 4,300 new dwellings to 2021 and a further 2,200
beyond 2021. Waterbrook is also an employment location. Over 2000 new
jobs are targeted here.
o
Chilmington Green/Discovery Park urban extension, to the south west of
Ashford, will provide for over 7,000 dwellings and 1000 jobs in total.
o
The location of a third urban extension is to be identified, that is proposed
to make provision for 3500 dwellings and 450 jobs.
•
Ashford Borough Council’s development plan identifies a site at Conningbrook on
the north-eastern edge of Ashford adjacent to the A2070 as a future strategic
park and water sports venue. The Council owns some land and buildings here,
including the Julie Rose Stadium and the Conningbrook Barn and Manor and is
discussing options with other land owners to enable a significant leisure and
recreation attraction to be developed. The Council has recognised this as a
corporate priority in its recently adopted 5-year business plan.
•
There are a number of planned major transport infrastructure projects in and
around Ashford that if progressed are likely to generate demand for hotel
accommodation particularly from the contractors working on them:
o
Creation of a new junction 10A on the M20 motorway.
o
New mixed use link roads, such as Victoria Way, Newtown Way and
Orchard Way;
o
Further remodelling of the town centre ring road;
o
The development of SMARTLINK, a bus rapid transport system;
o
A new rail halt at Park Farm;
o
A £2.4 million refurbishment of the Ashford International Station Forecourt
area is also planned.
Ashford Hotel Market Fact File
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March 2011
PROSPECTS FOR GROWTH
ASHFORD GROWTH AREA DIAGRAM
Ashford Hotel Market Fact File
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March 2011
PROSPECTS FOR GROWTH
Future Prospects by Market
•
Corporate demand for hotel accommodation in Ashford should grow substantially
over the next 5-10 years given the planned office and business park development
in and around the town and the envisaged economic development and
employment growth. This should provide a significant boost to midweek demand
for existing hotels and enable them to grow their corporate rates. It will also be a
key driver of new hotel development in the town.
•
Ashford’s 3/4 star hotels could see some growth in demand for residential
conferences as the town’s economy develops and new companies and
industries are attracted. The residential conference market has however generally
been declining across the UK for a number of years, as companies have cut back
on meeting and training budgets, developed their own meeting and training
facilities and made greater use of video, internet and telephone conferencing.
Growth in this market is thus likely to be relatively slow and residential conferences
are likely to remain a minor secondary midweek market for most hotels.
•
Given the size of its conference facilities and Ashford’s high speed rail and
Eurostar links there could be scope for the Ashford International to pull residential
conference business from London and elsewhere in the South East and to attract
European conferences. Such conferences may generate bedroom business for
other hotels in the town.
•
Contractor demand for budget hotel accommodation is set to increase
significantly in Ashford over the next 5-10 years, given the levels of construction
work that will be taking place as the major development and transport
infrastructure schemes are progressed.
•
Demand from people attending weddings, funerals, family parties and other
functions and from people visiting friends and relatives should increase steadily,
given the projected growth in the Ashford’s population.
Ashford Hotel Market Fact File
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March 2011
PROSPECTS FOR GROWTH
•
There appears to be more limited scope for hotels in Ashford to develop leisure
break business other than possibly through the promotion of special offers.
Ashford has limited appeal as a leisure break destination and there is little in the
future plans for the town’s development that will change this, other than the
improved retail, leisure and evening offer of the town.
•
Demand for budget hotel accommodation from people wanting to stay over
after a night out should increase in Ashford town centre as its evening economy
develops and the area’s population increases.
•
Families travelling to Eurodisney on Eurostar should continue to be a key market
for Ashford’s hotels at weekends and during school holiday periods.
•
Ashford hotels should continue to attract group tour demand. They may begin to
reduce their midweek group tour business as higher-rated corporate demand
builds.
•
There is likely to be significant demand for hotel accommodation in Ashford from
spectators attending the London 2012 Olympic and Paralympic Games in the
summer of 2012. The evidence from previous Games is that spectators will stay up
to 2 hours away from the Olympic Park. Many of the hotels close to the Olympic
Park and in Central London have already been booked up for officials, sponsors
and press and media teams. There will be a drive to encourage London 2012
spectators to use public transport. With the town’s high speed rail links to the
Olympic Park, Ashford is extremely well placed to act as a base for Olympic and
Paralympic spectators.
Ashford Hotel Market Fact File
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March 2011
SOURCES OF FURTHER INFORMATION
For further information and contacts or to discuss your requirements contact:
Andrew Osborne
Economic Development Manager
Ashford Borough Council
Civic Centre
Tannery Lane
Ashford
TN23 1PL
Tel:
01233 330310
Email: Andrew.Osborne@ashford.gov.uk
Ruth Wood
Research & Development Manager
Kent County Council
Invicta House 2nd Floor
County Hall
Maidstone
Kent
ME14 1XX
t.01622 696907
e. ruth.wood@kent.gov.uk
The following websites provide further information on the plans and strategies for
Ashford:
www.ashford.gov.uk
www.ashfordbestplaced.co.uk
Visit Kent Business
The latest facts and figures on tourism in Ashford and Kent are available from Visit
Kent’s ‘Visit Kent Business’ website through the following links:
www.visitkentbusiness.co.uk/index/research-development/research/Economic-Impact/
www.visitkentbusiness.co.uk/index/research-development/research/Business-Barometer/
Ashford Hotel Market Fact File
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March 2011