MEDWAY HOTEL MARKET FACT FILE - January 2016 - Visit Kent Business
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MEDWAY HOTEL MARKET FACT FILE January 2016
INTRODUCTION
Medway is currently going through a huge transformation as part of a 20-year
regeneration programme that is set to deliver major new transport infrastructure, up
to 16,000 new homes, more than 20,000 new jobs, and a massive improvement to the
physical environment of the area. By 2026 Medway will have been transformed into a
linear city of 300,000 people spanning 11 kilometres along the River Medway from
Strood and Rochester in the west to Gillingham in the east, with Chatham town
centre and waterfront at its heart. Medway is also developing as a leisure tourist
destination, with new attractions opening in Rochester and Historic Dockyard
Chatham in 2015 and 2016, plans for more events, and a renewed destination
marketing focus. The development of London Paramount Resort on the Swanscombe
Peninsula between Dartford and Gravesend is set to create significant opportunities
for hotels in Medway, from contractors during its construction phase, and families
wanting to visit the resort once it is open. Demand related to weddings and other
family occasions and from people visiting their friends and relatives in Medway is also
set to grow as the population increases.
All of these developments point to a significant increase in demand for hotel
accommodation in Medway over the next 5-10 years, creating opportunities for
investment in existing hotels and potential for new hotels to open as the market
grows.
The Medway Hotel Market Fact File provides the latest available information on:
• The current hotel supply in Medway;
• Recent hotel development;
• Current hotel development proposals;
• Recent hotel performance;
• The key markets for hotel accommodation in Medway;
• The prospects for growth in demand for hotel accommodation and what will
drive this.
All of the data and information in the Fact File has been compiled from research
undertaken by consultants Hotel Solutions in August, September and October 2015.
Medway Hotel Market Fact File 1 January 2016INTRODUCTION
For further information and contacts or to discuss your requirements contact:
Ed Woollard
Principal Tourism Development Officer
Medway Council
Civic Headquarters
Gun Wharf
Dock Road
Chatham
Kent
ME4 4TR
Tel: 01634 338122
Email: ed.woollard@medway.gov.uk
Medway Hotel Market Fact File 2 January 2016MEDWAY HOTEL SUPPLY
Current Hotel Supply
• There are currently 14 hotels in Medway with a total of 894 letting bedrooms. The
Medway hotel supply is predominantly a mix of 3 star and budget hotels, together
with one 4 star hotel, two small 2 star hotels and two small non-inspected hotels.
Limited service (budget) hotels account for just over half of Medway’s hotel
supply.
MEDWAY HOTEL SUPPLY – JANUARY 2016
Standard Hotels Rooms % of
Rooms
5 star 0 0 0
Boutique 0 0 0
4 star 1 100 11.2
3 star 3 257 28.7
2 star 2 59 6.6
Budget 6 451 50.5
Non-inspected 2 27 3.0
Serviced Apartments 0 0 0
Total Hotels 14 894 100.0
• The Medway hotel supply is split between Chatham, Rochester and Gillingham.
Chatham accounts for 44 per cent of Medway’s total hotel supply and is the
location of the 4 star Bridgewood Manor, Holiday Inn Rochester-Chatham and
Travelodge Chatham Maritime budget hotel. Gillingham has the next largest
number of hotel bedrooms. The hotel supply here is predominantly budget hotels.
Gillingham also has one 3 star hotel although it trades at lower room rates than
the budget hotels here. Of the three main Medway towns, Rochester has the
lowest number of hotel bedrooms. The only significant hotel here is the Premier
Inn Rochester at the Medway Valley Leisure Park in Strood. There are only three
small 2 star and ungraded hotels in the centre of Rochester, two of which appear
to offer a low standard of accommodation, judging by the largely unfavourable
customer reviews they are receiving on Tripadvisor.
Medway Hotel Market Fact File 3 January 2016MEDWAY HOTEL SUPPLY
MEDWAY HOTEL SUPPLY – JANUARY 2016
Location 4 Star 3 Star 2 Star Budget Ungraded TOTAL
Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms
Chatham 1 100 2 160 1 45 1 90 5 395
Rochester 1 14 1 121 2 27 4 162
Gillingham 1 97 4 240 5 337
Total Medway 1 100 3 257 2 59 6 451 2 27 14 894
Medway Hotel Market Fact File 4 January 2016MEDWAY HOTEL SUPPLY
MEDWAY HOTELS – JANUARY 2016
Establishment Grade1 Rooms
Chatham
Bridgewood Manor 4 star 100
Holiday Inn Rochester-Chatham 3 star 149
Ship & Trades 3 star 11
St George 2 star 45
Travelodge Chatham Maritime Budget 90
Rochester
Gordon House, Rochester 2 star 14
Premier Inn Rochester, Medway Valley Leisure Park Budget 121
Royal Victoria & Bull n/a 15
The King’s Head n/a 12
Gillingham
King Charles 3 star 97
Premier Inn Gillingham Business Park Budget 76
Premier Inn Chatham/Gillingham (Victory Pier) Budget 80
Premier Inn Rainham (Kent) Budget 26
Travelodge Medway M2, Rainham Budget 58
Note:
1. VisitBritain, AA, booking.com gradings
• In addition to hotels, the Cooling Castle Barn wedding venue at Cooling has 15
luxury bedrooms for use by wedding parties.
Medway Hotel Market Fact File 5 January 2016MEDWAY HOTEL SUPPLY
Changes in Supply 2010-2015
New Hotels
• Three new Premier Inn budget hotels have opened in Medway in the last five
years.
MEDWAY - NEW HOTELS 2005-2010
Hotel Location Standard No. Year
Rooms Opened
Premier Inn Rochester Medway Budget 121 2010
Valley (October)
Leisure Park
Premier Inn Rainham (Kent) Rainham Budget 26 2010
(November)
Premier Inn Chatham/Gillingham Gillingham Budget 80 2015
(Victory Pier) Waterfront (May)
Investment in Existing Hotels
• The Ramada Encore upper-tier budget hotel at Chatham Maritime was rebranded
as the Travelodge Chatham Maritime at the end of 2015.
• There have been no extensions to any of Medway’s existing hotels over the last five
years. The public areas of the Bridgewood Manor and Holiday Inn have been
refurbished in 2014. The Holiday Inn has also refurbished its swimming pool. There
has otherwise been no significant investment in any of Medway’s existing hotels,
other than ongoing upkeep and redecoration.
Medway Hotel Market Fact File 6 January 2016MEDWAY HOTEL SUPPLY
Proposed Hotel Development
Hotels Under Construction
• The national pub and hotel chain JD Wetherspoon is currently developing 9 hotel
bedrooms as part of its £1.5 million refurbishment of the Golden Lion pub in
Rochester
Hotel Proposals
• A site on Corporation Street in Rochester town centre has planning permission for
a 110-bedroom budget hotel at the back of the Visitor Information Centre. The
permission, originally granted in 2008, was renewed in 2012.
• Planning permission was granted in May 2015 for the conversion of the former
accommodation block for the Equestrian Centre at Walnut Tree Farm in Rainham
into a 56-bedroom hotel.
• The masterplan for Rochester Riverside identifies potential for a hotel at the
Station Gateway site and possibly a second hotel at Blue Boar Wharf, depending
on longer-term market conditions.
• The design brief for the Chatham Waterfront site includes provision for an 80-
bedroom hotel.
• The outline permission for the Chatham Waters development includes provision
for a hotel.
• The plans for the Lodge Hill development at Chattenden include two potential
hotels.
Medway Hotel Market Fact File 7 January 2016MEDWAY HOTEL PERFORMANCE & MARKETS
Occupancy and Achieved Room Rates
• Average annual room occupancies and achieved room rates for hotels in
Medway are estimated as follows for 2013, 2014 and 2015.
MEDWAY HOTEL PERFORMANCE 2013-2015
Standard of Hotel Average Annual Average Annual
Room Occupancy Achieved Room Rate7
% £
2013 2014 2015 2013 2014 2015
UK Provincial Hotels (All Standards)1 72.6 75 765 59.94 62.07 64.735
UK Provincial UK 3/4 Star Chain Hotels2 72.0 73.9 n/a 71.46 76.49 n/a
Medway 3/4 Star Hotels3 68 71 716 51.02 51.82 55.696
Medway Budget Hotels4 75 80 836 48.00 49.75 53.546
Medway Hotels (All Standards) 71 75 766 49.59 50.85 54.136
Source: Hotel Solutions – October 2015
Notes
1. Source: STR Global
2. Source: TRI Hotstats UK Chain Hotels Market Review
3. Sample: Bridgewood Manor, Holiday Inn Rochester-Chatham, King Charles, St George
4. Sample: Ramada Encore Chatham, Premier Inn Rochester, Premier Inn Gillingham Business
Park, Premier Inn Rainham (Kent)
5. PwC UK Hotel Forecast 2015
6. Based on forecast figures provided by hotel managers
7. Net of VAT and breakfast
• Occupancy performance for Medway’s hotel sector as a whole has been
broadly in line with UK provincial averages for the last three years. There has
however been a significant difference between full service (3/4 star) hotels and
limited service (budget and upper-tier budget hotels). Average annual room
occupancies for Medway’s full service (3/4 star) hotels have been 3-4
percentage points below the national averages for provincial 3/4 star chain
hotels. While there was some improvement in 2014, as a result of an increase in
project-related corporate demand and film crew business, occupancies have
remained unchanged in 2015. Budget hotels, on the other hand, have achieved
very high average annual room occupancies and have seen a year-on-year
improvement in occupancy performance, with further growth in 2015 despite the
opening of the new Premier Inn at Victory Pier.
Medway Hotel Market Fact File 8 January 2016MEDWAY HOTEL PERFORMANCE & MARKETS
• Achieved room rate performance for Medway’s hotel sector is significantly
behind national averages. This is largely to do with the low average room rates
that are achieved by Medway’s 3/4 star hotels. They are substantially below the
national averages for provincial 3/4 star chain hotels, and only just ahead of the
levels achieved by Medway’s budget hotels. There is however a significant
difference in achieved room rate performance between hotels, with one hotel
trading at much lower average room rates, particularly since the opening of the
new Premier Inns, with which it has struggled to compete on price. This has
reduced overall performance for Medway 3/4 star hotels, however none of the
other hotels have been achieving much higher average room rates. One hotel
saw a drop in average room rates in 2014 as it focused more on driving
occupancy. Most hotels have been more able to yield room rates in 2015 as
demand has strengthened, resulting in some improvement in achieved room rate
performance.
• In contrast to 3/4 star hotels, Medway’s budget hotels are trading at average
room rates that are fairly typical for budget hotels. Achieved room rate
performance has also strengthened for Medway budget hotels in 2015.
Medway Hotel Market Fact File 9 January 2016MEDWAY HOTEL PERFORMANCE & MARKETS
Midweek/Weekend Occupancies
• Estimated weekday and weekend occupancies for Medway hotels in 2015 are
summarised in the table below.
MEDWAY HOTELS - WEEKDAY/ WEEKEND OCCUPANCIES – 2015
Standard Typical Room Occupancy
%
Mon-Thurs Fri Sat Sun
3/4 Star Hotels 75 66 86 45
Budget Hotels 88 77 93 52
Source: Hotel Solutions – October 2015
• Midweek occupancies vary significantly for 3/4 star hotels. Two hotels reported
midweek occupancies of just under 80% in 2015, while two reported weekday
occupancies of around 65-70%. Tuesday and Wednesday nights were the
strongest, with most 3/4 star hotels sometimes filling and turning business away on
these nights to varying degrees. Monday and Thursday night occupancies tend
to be lower. Most 3/4 star hotels have a fairly stable pattern of midweek
occupancy throughout the year. Midweek corporate demand dips in August and
September but hotels are usually able to replace this with group tour business to
maintain weekday occupancy levels. One hotel that focuses more on the group
tour market reported a more seasonal trading pattern, with high midweek
occupancies between May and September and much lower weekday
occupancies between November and March.
• Medway’s budget hotels achieve very high midweek occupancies. They
generally fill and turn business away on Monday, Tuesday and Wednesday nights
for much of the year. Thursday occupancies are slightly lower, particularly in the
winter, but still average over 80 per cent.
• Saturday occupancies are strong at all levels in the market throughout the year.
Friday occupancies are not as strong, other than for budget hotels, which
generally trade at occupancies in excess of 80% on Friday nights. Sunday
occupancies are much lower, and again stronger for budget hotels. Friday
occupancies tend to be stronger between April and October. Sunday
occupancies are low all year.
Medway Hotel Market Fact File 10 January 2016MEDWAY HOTEL PERFORMANCE & MARKETS
Midweek Markets and Trends
• Corporate demand from Medway companies is the main source of midweek
demand for 3/4 star hotels in Medway. One hotel attracts a small amount of
residential conference and training course business. This is not a market that other
3/4 star hotels attract however. Contractors are a significant midweek market for
one hotel, a secondary midweek market for another, and a minor market for a
third hotel. Group tours are a significant midweek market for one hotel between
May and September. Another hotel also takes group tours during the summer
months to compensate for the downturn in corporate business at this time of year.
Leisure breaks are a minor weekday market for two hotels. One hotel attracts
some bedroom business from midweek weddings. TV and film productions at
Chatham Historic Dockyard, in particular ‘Call the Midwife’, generate some
midweek business for one hotel.
• Budget hotels in Medway attract a mix of corporate and contractor demand
during the week. They also attract some midweek business from people visiting
friends and relatives, attending funerals or visiting people in hospital; film crews;
university-related demand from visiting academics and conference delegates;
and group tours in the summer for one hotel.
• While Medway hotels attract much of their corporate business from companies in
their immediate vicinity, most hotels also attract business from companies in other
parts of Medway. Corporate demand is often project-related and unpredictable
therefore. The Medway corporate market is highly competitive, which keeps
corporate rates at a relatively low level.
• Group tours are mainly from the UK and Europe, in particular Germany, the
Netherlands, France, Belgium and Italy. Overseas groups either stay for a single
night stop-over en-route to/from the Continent, or base themselves at a Medway
hotel for a 4 night stay to visit Kent and London. UK group tours tend to stay 2-3
nights are come primarily for the Historic Dockyard and Rochester Cathedral.
Hotels also attract some ‘Call the Midwife’ tours. This is a seasonal market, with
groups generally visiting between April and September. It is generally low-rated
business that hotels take to boost off peak periods, particularly during the summer
when corporate demand reduces. One hotel has focused more on this market as
it has lost corporate and contractor business to the new Premier Inns that have
opened in Medway.
Medway Hotel Market Fact File 11 January 2016MEDWAY HOTEL PERFORMANCE & MARKETS
• In terms of trends in midweek demand:
o Corporate demand has grown in 2014 and 2015 as the economy has
strengthened and as a result of new project-related business.
o Contractor demand has increased.
o There has been no change in residential conference demand.
o Demand from film productions at the Historic Dockyard has grown.
o One hotel reported an increase in UK group tour business but a downturn in
European group tours. Another reported an increase in group tour business,
while one hotel has taken fewer group tours during the summer as demand
has grown from higher-rated markets.
Weekend Markets and Trends
• The key weekend markets for Medway’s 3/4 star hotels are weekend leisure
breaks and weddings and functions. The relative importance of these two
markets varies between hotels. Group tours are an important secondary weekend
market for two hotels. Hotels attract some weekend demand from the corporate
and contractors markets. Local events are a further generator of business for
hotels. Other weekend markets are stop-overs en-route to/from the Continent
and people visiting friends and relatives.
• Key draws for weekend breaks are Chatham Historic Dockyard, Dicken’s World,
Rochester Castle and Cathedral, Diggerland, Leeds Castle and the castles,
gardens and National Trust properties in the surrounding parts of Kent. Spa breaks
are a key market for Bridgewood Manor. The family market is strong for one hotel.
Weekend break business is largely rate driven through OTAs (booking.com,
LateRooms, Expedia etc.) and special offer promotions by the hotel chains
represented in Medway.
• Weekend markets for budget hotels are a mix of people coming for weekend
breaks to visit the Historic Dockyard and other Medway attractions; people
attending weddings and other family parties; and people visiting friends and
relatives. Budget hotels also attract some weekend demand from the corporate
and contractor markets, parents of university students visiting their children, and
business related to local events.
Medway Hotel Market Fact File 12 January 2016MEDWAY HOTEL PERFORMANCE & MARKETS
• Events that generate some demand for hotels in Medway include:
o Rochester Dickens Festival
o Rochester Christmas Market
o Rochester Sweeps Festival
o Fuse Medway Festival
o Castle Concerts, Rochester Castle
o Events at Chatham Historic Dockyard
o National and international sports events at Medway Park e.g. Wheelchair
Rugby League World Cup (2013) and European Championships (2015)
o Ramblin’Man Fair, Maidstone
o International Gathering of Champions, Prayer City, Buckmore Park
o Volvo World Matchplay Golf, London Golf (2014)
• In terms of trends in weekend demand:
o Weekend break demand has remained largely static overall. Some hotels
have seen an upturn in weekend break business, others reported no
change in this market, and one hotel has seen a drop in weekend break
business in 2015.
o Bridgewood Manor has seen strong growth in spa break business.
o Two hotels have seen an increase in demand from weddings. One
reported a downturn in this market.
o One hotel reported an increase in weekend group tour business. Another
has seen a reduction in European group tours.
Medway Hotel Market Fact File 13 January 2016MEDWAY HOTEL PERFORMANCE & MARKETS
Denied Business1
• 3/4 star hotels in Medway occasionally turn some business away on Tuesday and
Wednesday nights during peak corporate months (March, April, May, October,
November). Denials at these times are not particularly high however. One hotel
also turns away midweek business in the summer months when it is full with group
tours. Another hotel refuses midweek group tour bookings.
• Two 3/4 star hotels regularly turn business away on Saturday nights. Another
occasionally denies Saturday night bookings.
• Medway’s budget hotels regularly deny business on all four midweek nights.
Tuesday and Wednesday night denials are consistently high for most budget
hotels. Monday and Thursday denials are not quite as strong and are not as
consistent during the winter.
• Medway’s budget hotels also regularly turn business away on Friday and Saturday
nights for most of the year, other than in January. Saturday night denials are
generally quite significant. Friday night turndowns are not as high and are less
consistent during the winter months.
1 Business that hotels turn away because they are fully booked
Medway Hotel Market Fact File 14 January 2016MEDWAY HOTEL PERFORMANCE & MARKETS
Prospects for 2016
• Medway 3/4 star hotel managers are a little uncertain about the prospects for
their hotels in 2016. One expects to see a slight improvement in occupancy and
achieved room rate. One sees little prospect of occupancy growth but some
scope to grow room rate. Another feels that it is difficult to predict what will
happen in 2016 as so much is dependent on corporate projects, which have yet
to be announced. The new Premier Inn at Victory Pier has had some impact on
two 3/4 star hotels, one of which expects this hotel to continue to affect it in 2016.
• Medway’s budget hotels are likely to maintain their high occupancies in 2016 and
see some further growth in achieved room rate. The new Premier Inn at Victory
Pier is already trading strongly and does not appear to have greatly affected
Medway’s established budget hotels.
Medway Hotel Market Fact File 15 January 2016PROSPECTS FOR GROWTH
Strategic Context
Medway is part of the Thames Gateway Growth Area, the largest regeneration
project in Europe, and one of 4 Growth Areas identified by Government to deliver
significant levels of new housing and jobs in and around the South East. As part
of a 20-year regeneration programme Medway is currently going through a huge
transformation that is set to deliver major new transport infrastructure, up to
16,000 new homes, more than 20,000 new jobs, and a massive improvement to
the physical environment of the area. By 2026 Medway will have been
transformed into a linear city of 300,000 people spanning 11 kilometres along the
River Medway from Strood and Rochester in the west to Gillingham in the east,
with Chatham town centre and waterfront at its heart.
Key projects that will help deliver the Medway vision and associated targets
include:
o Rochester Riverside
The latest masterplan for the regeneration of this 32-hectare brownfield
site adjacent to the River Medway, published in September 2014,
envisages the creation of a new neighbourhood with up to 1,400 new
homes; a new railway station; a range of public parks and open spaces;
local amenities including a primary school, local shops and community
facilities; and new commercial uses including office space, restaurants
and bars, retail, and potentially two hotels. Blue Boar Wharf, the area
next to the historic crane, is earmarked as a new waterfront destination
for food, drink and retail. The preferred location for a hotel is the Station
Gateway. Depending on longer-term market conditions, the masterplan
also suggests that a second hotel could be considered at Blue Boar
Wharf. Initial phases of affordable housing were completed at Stanley
Wharf in 2012 and 2013 and the new railway station opens in December
2015. Medway Council has shortlisted three potential development
partners for the site. It hopes to be in a position to sign a development
agreement with its preferred partner by summer 2016, with a view to
work commencing on site in early 2018, with initial phases completed by
2020.
Medway Hotel Market Fact File 16 January 2016PROSPECTS FOR GROWTH
o Chatham Waterfront
This is one of the most important regeneration sites in Medway. It
occupies a prime position on the River Medway on the edge of
Chatham town centre and next to Chatham’s new state-of-the-art bus
station. Medway Council’s ambition is for an exemplar development
combining modern urban living with a range of commercial uses to
emphasise the river as a destination and to complement the town
centre offer. The design brief for the site, issued in November 2014,
envisages a mixed-use scheme which could include 90 residential
apartments, 2,500m2 of commercial space, including a small food store;
an 80-bedroom hotel; and 120 undercroft and surface car parking
spaces. The Council is currently in the final stages of acquiring the site
and plans to go out to market in spring 2016 to find a development
partner or dispose of the site. It is envisaged that work could potentially
commence on site in early 2018, with completion possibly by the end of
2020.
o Chatham Waters
Peel Land & Property is currently on site transforming a 10.5 hectare
brownfield site at the former Chatham Naval Dockyard into the
Chatham Waters mixed-use scheme. Their plans for the site include the
development of 950 new town houses and residential apartments; a
‘Leisure Boulevard’ of waterfront bars, restaurants and retail outlets; an
‘EventCity’ exhibition and event space; a ‘Commercial Hub’ with
400,000 sq ft of office space and opportunities for specialist educational
facilities; an ASDA supermarket; green spaces; and a multi-storey car
park. The outline planning permission for the site also make provision for
a hotel. The supermarket and new Medway University Technical College
opened in 2015 as the first phase of development on the site.
Medway Hotel Market Fact File 17 January 2016PROSPECTS FOR GROWTH
o Chatham Maritime Interface Land
A Supplementary Planning Document was prepared in October 2010 for
this remaining parcel of land at Chatham Maritime. It identifies a range
of potential uses for the site, including residential, student
accommodation, high quality office space, studio and workshop space
and commercial leisure uses. No firm plans are currently in place to
progress the development of this site however.
o Chatham Centre
A number of masterplans and development briefs have been
produced for the regeneration of Chatham Centre, which could result
in the creation of over 3,600 new homes; 2,700 new jobs in 50,000m 2 of
employment floorspace; the redevelopment of the Pentagon Centre;
and new retail and leisure opportunities. There are no firm plans
currently to implement these plans however.
o Victory Pier, Gillingham Waterfront
Berkeley Homes is currently progressing the Victory Pier scheme at
Gillingham Waterfront to deliver 775 new homes and over 2,200m2 of
commercial space including bars, restaurants, shops and the new
Premier Inn that opened in May 2015.
o Strood Waterfront and Town Centre
This extensive waterfront area extends from the M2, through Temple
Waterfront and Strood town centre, to Strood Riverside and adjoining
Strood station. It includes a number of distinct mixed-use development
opportunities that will be complemented by infrastructure and public
realm improvements in the town centre and to the station. In total these
opportunities are expected to result in over 2,000 new homes, 42,300 m2
of employment floorspace and 22,500m2 of retail.
Medway Hotel Market Fact File 18 January 2016PROSPECTS FOR GROWTH
o Rochester Airport
Full planning permission was granted in February 2015 for the
development of Rochester Airport. The plans include a new re-
orientated paved runway; a science and technology business park
creating up to 1,000 new jobs; a new aviation heritage attraction; a
possible extension to the Innovation Centre; and possibly offices,
restaurant, café or gym.
o Creative Industries Innovation Hub
Medway Council has ambitions to attract creative businesses to
Chatham/Rochester through the development of a ‘Creative Industries
Innovation Hub, one of eight proposed across the South East LEP area.
The University of Creative Arts is also planning to develop a creative
business campus at its Fort Pitt site in Rochester.
o Medway Destination Management Plan
A new Destination Management Plan for Medway was launched in
June 2014. It recognises that day visitors will continue to be the key
market for Medway but focuses primarily on attracting more people to
stay for short breaks, targeting culture-seeking emptynesters, families
keen on learning and discovery with their children, and pre-family
couples and singles living in London that are looking for different places
to visit. The Plan sets out two priorities – firstly to develop the tourism core
of the Historic Dockyard Chatham and Rochester, focusing on
connecting these two visitor draws to create a stronger critical mass of
visitor experiences that will encourage visitors to stay longer – and
secondly improved destination marketing with themed itineraries and
packages, PR activity, digital marketing and brand development.
Medway Hotel Market Fact File 19 January 2016PROSPECTS FOR GROWTH
The Action Plan for Priority One focuses on improving visitor welcome,
orientation and movement; capitalising on pipeline visitor attraction
projects opening in 2015 and 2016; developing events and festivals; and
capitalising on the new events space proposed at Chatham Waters and
the new London Paramount Resort planned for the Swanscombe
Peninsula between Dartford and Gravesend.
New attractions in Medway include:
- The £9million ‘Command of the Oceans’ interactive galleries at
the Historic Dockyard, opening in 2016.
- The Huguenot Heritage Centre that opened in Rochester in
summer 2015.
- The £2million restoration and re-opening of Eastgate House in
Rochester, which has connections to Charles Dickens, due to
be completed in 2016.
- The Rochester Cathedral HLF ‘Hidden Treasures, Fresh
Expressions’ project due to be completed by the end of 2015,
which will include a permanent exhibition space in the crypt for
the Textus Roffensis and the Cathedral’s other treasures and
manuscripts.
- A new open top bus tour introduced in 2012.
- New horse and carriage rides introduced in Rochester in
summer 2015.
- New jetboat tours.
- The potential introduction of a new pleasure cruise service in
2016.
Key anniversaries for events are the Siege of Rochester Castle and
Magna Carta in 2015, the 350th Anniversary of the Dutch Raid in 2017,
and the 150th anniversary of the death of Charles Dickens in 2020.
Destination marketing activity is focused on working with Tourism South
East and Portsmouth to develop the Dickens Country brand and
themed itineraries to target the US group tour market, alongside
attendance at Vakantiebeurs travel trade show to target the Dutch
market. Plans to reach target UK short break customers are also being
worked up.
Medway Hotel Market Fact File 20 January 2016PROSPECTS FOR GROWTH
o Filming in Medway
Various locations in Medway, including the Historic Dockyard Chatham,
Rochester, Fort Amherst and Cobham Hall, are increasingly being used
for film and TV productions, including feature films such as Victor
Frankenstein (2015), Suffragette (2015), The Man from U.N.C.L.E. (2015),
Mr Holmes (2015), Mr Turner (2014) and Les Miserables (2013), and TV
dramas Call the Midwife (2012-2015), Mr Selfridge (2013-2015), Jekyll and
Hyde (2015) and Partners in Crime (2015). The Call the Midwife TV series
attracts visitors and tour groups to the Historic Dockyard for location
tours.
o Medway Park
Plans are being developed to attract at least one international, two
national and three regional sports events per year to the £11.1 million
Medway Park centre of sporting excellence that opened at Gillingham
in April 2010. The centre hosted the European Wheelchair Rugby League
Championships in September 2015 and the Men’s Under 21s Handball
World Championship qualifiers in January 2015, and will host the
European Veterans Fencing Team Championships in May 2016.
o Medway Superhub
The Medway Superhub is a cluster of sites in Medway and Swale that are
suitably sized and positioned to accommodate the integrated
manufacture of blades, gearboxes, nacelles, towers and foundations for
offshore wind turbines. Together with operations and maintenance
facilities at the Port of Ramsgate, these sites comprise the Kent CORE
(Centre for Offshore Renewable Engineering). The site in Medway are
London Thamesport, the Isle of Grain and the London Medway
Commercial Park.
o Lodge Hill, Chattenden
A new community is proposed at Lodge Hill on former military land on
the Hoo Peninsula, north of the River Medway. Plans put forward by
Land Securities and the Defence Infrastructure Organisation propose
Medway Hotel Market Fact File 21 January 2016PROSPECTS FOR GROWTH
5,000 new homes; a similar number of new jobs in 44,100m2 of mixed
employment floorspace; schools, healthcare and community facilities;
retail provision; and two hotels. The site was included as a strategic
allocation of land in the Submission Draft Medway Core Strategy that
went to examination in June 2012. Part of the site was confirmed by
Natural England as an SSSI in November 2013, leading to the
withdrawal of the Core Strategy. The future of the site remains under
consideration by Medway Council in the context of preparing a new
Local Plan for Medway.
There are also three major projects in surrounding areas that could generate
demand for hotel accommodation in Medway, both during their construction
phase and once completed:
o Paramount London Resort
Plans are being progressed for a £2bn, world-class, 111-acre
entertainment resort on the Swanscombe Peninsula between Dartford
and Gravesend. The resort will include 50 rides and attractions themed
around the film and television programmes of Paramount Pictures and
British film and TV companies including BBC Worldwide, Aardman and
the British Film Institute. 70% of attractions will be indoors. Other elements
of the scheme include Europe's largest water park, a conference
centre, high tech events space, a creative hub designed to attract
creative businesses to the site, and up to 5,000 quality hotel bedrooms.
The resort is expected to attract 15 million visitors per year, around 50,000
on a typical day. Approximately 25% of visitors are expected to stay at
the resort. Others will stay in Kent, Essex and London. The resort will
create up to 27,000 jobs. Detailed design, planning and contractor
appointment is scheduled for Summer 2016 to Autumn 2017, with
construction commencing Winter 2017 leading to a projected opening
in Spring/Summer 2021. The scale of the accommodation demand that
the project will generate means that it could impact widely on
surrounding locations in Kent, including Medway, both during the
construction phase and once open.
Medway Hotel Market Fact File 22 January 2016PROSPECTS FOR GROWTH
o Ebbsfleet Valley
The development of a new garden city, to be known as Ebbsfleet
Valley, with 17m sq ft of floorspace allocated to a mix of residential,
business, retail, leisure and community uses. The 1035-acre site will see
the development of up to 10,000 homes and 20,000 jobs. Consultation is
underway on the creation of an Urban Development Corporation that
should make delivery easier, quicker and cheaper. The project is likely to
generate significant demand for hotel accommodation during its
construction. Companies locating here will also generate new
corporate demand for hotel accommodation. Medway hotels may
attract a proportion of this demand, especially during the construction
phase.
o London Golf Club
Permission has been granted for a 130 bedroom 5 star resort hotel at
London Golf Club. This is a championship course which has had
considerable interest for the staging of major international tournaments,
including the European Tour, which it should be able to secure with an
on-site luxury hotel. Such championships are likely to generate
significant demand for hotel accommodation, potentially spilling out to
Medway.
Medway Hotel Market Fact File 23 January 2016PROSPECTS FOR GROWTH
Future Prospects by Market
• Contractor demand for budget hotel accommodation is set to increase
significantly in Medway over the next 5-10 years given the levels of construction
work that will be taking place as the major regeneration schemes are progressed
in Medway and the construction of the Paramount London Resort and Ebbsfleet
Valley are progressed. Construction projects could also produce demand for full
service 3/4 star hotels.
• There should be strong growth in corporate demand for hotel accommodation in
Medway as the planned office and employment floorspace is occupied and
new companies are attracted. Growth in corporate demand is likely to be
strongest post 2020, given the timescales for most of the regeneration schemes.
The planned offices at Chatham Waters and the development of the offshore
renewable engineering sector in the Medway Superhub could however generate
new corporate demand more quickly.
• The development of creative industries in Medway could create a demand for a
high quality, boutique hotel offer.
• Medway’s 3/4 star hotels could see some growth in demand for residential
conferences as the area develops and new companies and industries are
attracted. Nationally there has been some recovery and renewed growth in the
residential conference market, which Medway hotels could benefit from.
• The further strengthening of Medway’s attractions offer, with the opening of the
new attractions in 2015 and 2016 and the closer integration of Rochester and the
Historic Dockyard, together with the development of new events and festivals
and improved destination marketing to reach target UK short break markets,
should result in increased demand for weekend and midweek breaks in
Medway.
• The planned EventCity exhibition and event space at Chatham Waters could
generate new demand for hotel accommodation in Medway, depending on the
events that it attracts.
Medway Hotel Market Fact File 24 January 2016PROSPECTS FOR GROWTH
• The strategy to attract international, national and regional sporting events to
Medway Park should generate increased demand for hotel accommodation for
such events.
• In the longer term (post 2021) the Paramount London Resort should generate a
substantial increase in demand for hotel accommodation in Medway,
particularly given its direct rail links to Swanscombe. While the resort will have
5,000 on-site hotel bedrooms, the scale of accommodation demand that it will
generate will present significant opportunities for hotels in Medway to attract
families that want to visit the resort.
• Medway hotels should continue to attract group tour business on the back of the
Historic Dockyard, ‘Call the Midwife’, and Rochester visitor offer and Medway’s
accessibility to other parts of Kent and London. While this may be lower-rated
business, hotels can use this market to boost off-peak periods and to give them
base business to assist them in yielding room rates. Hotels may look to reduce the
number of group tours that they take as other higher-rated markets grow.
• 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 Medway’s population.
Medway Hotel Market Fact File 25 January 2016HOTEL DEVELOPMENT OPPORTUNITIES
Budget/Upper-Tier Budget Hotels
• The strength of budget hotel performance and levels of business that
Medway’s budget hotels are turning away, coupled with the prospect of
significant growth in contractor demand and the longer-term potential to
attract families that want to visit London Paramount Resort, all point to a
potential for further budget and/or upper-tier budget hotels to open in
Medway. Rochester Station Gateway and/or the Corporation Street site are
probably the strongest locations for new budget/upper-tier budget hotels,
given the planned development of Rochester Riverside and the direct rail
access to London Paramount Resort and Ebbsfleet Valley that hotels here
would have. Chatham Waters might also be able to support a budget/
upper-tier budget hotel, given the office development that is planned here
and the potential demand that might be generated by the EventCity
exhibitions and event venue. Chatham Waterfront might also attract interest
from budget/upper-tier budget hotel operators and the Lodge Hill
development (if it goes ahead) might also support a budget hotel.
3/4 Star Hotels
• In the longer-term (post 2020) growth in corporate demand is likely to support
investment in the upgrading and possible expansion of existing 3/4 star hotels.
It remains to be seen whether growth in the corporate market will be sufficient
to support a new hotel at this level in the market.
Serviced Apartments/ A Small Aparthotel
• Growth in corporate demand might also be able to support the development
of serviced apartments in Medway, most likely in terms of the letting of
residential apartments to long stay corporate guests, but potentially also in
terms of the development of a small aparthotel or purpose-built serviced
apartment complex.
Medway Hotel Market Fact File 26 January 2016HOTEL DEVELOPMENT OPPORTUNITIES
A Small Boutique Hotel
• There could also be scope for a small boutique hotel in Rochester or possibly
at Chatham Historic Dockyard or Chatham Maritime, given a suitable
property for conversion. Such a hotel would cater for the top end of the
corporate market and weekend break demand from London due to its
quality and reputation for food. This could present an opportunity for the
repositioning of one of the small hotels in Rochester or the conversion of a
suitable building at the Historic Dockyard or Chatham Maritime.
Medway Hotel Market Fact File 27 January 2016SOURCES OF FURTHER INFORMATION
For further information and contacts or to discuss your requirements contact:
Ed Woollard
Principal Tourism Development Officer
Medway Council
Civic Headquarters
Gun Wharf
Dock Road
Chatham
Kent
ME4 4TR
Tel: 01634 338122
Email: ed.woollard@medway.gov.uk
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