A new report on the future of hotels in Liverpool predicts further growth in this market over the next ten years to keep up with demand.
The ‘Liverpool Hotel Futures 2014’ report, commissioned by Liverpool City Region Local Enterprise Partnership and Liverpool Vision, assesses the prospect of future hotel development across Liverpool, what types of hotel are required, as well as the drivers for growth. It has been prepared by hotel development consultancy, Hotel Solutions.
Since the last study in 2011, 17 new hotels and serviced apartments have opened adding 1,529 rooms / apartments, with a further new hotel opening by the end of 2014. Between 2011 and 2014, this was primarily budget hotels and apartments, but the report states that: “The latest wave of new hotels is upscale with 2014 seeing the opening of the first new 4 star hotel in 5 years and two new boutique hotels.”
The report also says that “Liverpool has had by far the greatest and most sustained growth in hotel supply of any of its comparator cities.”
“The availability of BPRA tax incentives for the conversion of redundant offices has clearly been a key driver of hotel development in Liverpool in the last three years. Looking further ahead there are 19 hotel development proposals that could come forward from 2015 with the potential to add over 2000 rooms to Liverpool’s supply – the majority of these are upscale full service hotels.”
The report highlights the growth in roomnight demand, which grew by 19% between 2011 and 2013 and looks set to have increased by 26% by the end of 2014 compared to 2011. Weekend demand remains strong with high occupancy rates, and although midweek demand has grown by 27.7% from 2011 to 2013 it still remains a challenge in terms getting the rate right.
Looking ahead, the report says that “Liverpool’s continuing vision to establish itself as a world class international maritime city is likely to deliver substantial levels of growth through to 2025…The visitor economy will remain one of the key priority sectors underpinning Liverpool’s growth….attracting more conferences and exhibitions and international visitors, driving growth in domestic leisure visitors 7 days a week, developing a major events programme and expanding the cruise market.”
Sara Wilde McKeown, Chair of the Liverpool City Region’s Visitor Economy Board, said: “We are continuing to go through a period of growth and success across the visitor economy. Investment in hotel development is vital for this to carry on. This report is a valuable piece of research and will help guide us to deliver further, sustainable growth.
“One aspect of this is growing our hotel midweek demand, although there has been improvement there is still more that can be done to widen our appeal particularly through marketing Liverpool as a leading business tourism destination and targeting wider overseas markets.”
Jenny Douglas Head of Investment for Liverpool Vision said “This report sets out clearly current hotel performance, hotel market growth prospects and what is driving that growth. We must ensure that our existing hotels continue to invest and prosper. To support them and guarantee growth we must work closely with developers and operators to secure the diversity of hotel offer and locations the report recommends.”
“The continuing expansion of Liverpool’s hotel sector has clearly been a major success story and contributed significantly to tourism growth in the city” commented Andrew Keeling of Hotel Solutions.” The ongoing development of Liverpool as a leisure and business tourism destination will undoubtedly create further opportunities for new hotels to open in the city. The priority going forward is for a more distinctive and diverse hotel offer, particularly on the Waterfront, with modern hotel products and brands that can win new business for the city and enhance its reputation as a place to visit and do business.”
A copy of the executive summary of the report can be found here