Hotels at sports stadiums set for huge growth

The number of hotel rooms attached to sports stadiums will triple over the next nine years, experts predicted today.

A study by consultancy PricewaterhouseCoopers (PwC) revealed that the number of rooms attached to stadiums had been growing by 13% a year since 1998, currently standing at 1,314 rooms (in 11 hotels).

Julie Clark, sports and leisure leader at PwC, urged operators to consider seriously the growth potential for this niche hotel market.

"We have seen significant growth in the past decade, but the greatest opportunity is yet to come as penetration levels remain low and more sporting venues announce plans to redevelop their venues," she said.

"Currently only about eight percent of football stadiums and 16% of racecourse venues have hotels attached, so the scope for growth is enormous."

However, Clark warned that the product was not for every business and did attract some risks.

"Merely opening a hotel at a sporting venue will not automatically guarantee additional revenues. Location is paramount and the hotel needs strong demand base to ensure a viable business model," she said.

"The right hotel at the right venue can provide benefits for the operator and venue alike - the secret of success is to pursue mutually beneficial goals and opportunities."

Existing hotels and planned developments by sport include:

Football

• Currently eight hotels in seven venues accounting for 990 rooms.

• A further 12 hotels and 1,412 rooms are in the development pipeline.

Racecourses

• Wolverhampton Racecourse is currently the only course to have a hotel attached, with 116 rooms.

• Nine hotels and 1,089 rooms are in the development pipeline, including a 120-bedroom hotel at Doncaster Racecourse, due to open in 2008.

Cricket

• Old Trafford is the only venue to currently have a hotel attached.

• In the development pipeline are four hotels accounting for 575 bedrooms to be built at St Lawrence Ground in Canterbury, Kent, the Rose Bowl in Southampton, Hampshire, and the Brit Oval and Lords in south and north-west London respectively.

Rugby

• Madejski Stadium, home to Reading FC and London Irish Rugby Union Club, accounts for the only rugby venue hotel.

• Two hotels and about 356 rooms are planned - the 156-room Marriott Hotel at Twickenham and an integrated 200-bedroom hotel at Salford City Reds' proposed new stadium.

Motor Racing

• Brands Hatch developed a 140-bedroom property located on the Grand Prix parkland in 1988. The track is proposed to be developed by the owner's of Silverstone but no details are available.

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By Daniel Thomas

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