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Hotel developers favour sites next to attractions and other businesses

15 October 2012 by
Hotel developers favour sites next to attractions and other businesses

More hotels are being developed alongside attractions or businesses which can guarantee a certain number of bookings throughout the year, according to property agent Jones Lang LaSalle Hotels.

Despite a slowdown in hotel investment in Europe during the first six months of 2012 - down by 12% to £3b compared with the same period in 2011 - the latest Jones Lang LaSalle Hotel Investment Highlights reports that UK hotel development is taking place in some unexpected locations.

Chris Moore, national director of Jones Lang LaSalle Hotels, said: "Very often, the justification for hotel investment lies in the marriage that occurs when a hotel proposition is blended with other activities, and it is the diversity of those activities that are spawning new reasons for building hotel bedrooms.

"Evidence reveals that the ability of a key stakeholder to underwrite a minimum room night guarantee is an innovative route to secure stronger commitments from operators, funders and investors."

In particular, Moore pointed to the development of two hotels from Hilton Worldwide - a 142-bedroom Hilton and 86-bedroom Hampton by Hilton - alongside the new National Football Centre in Burton-upon-Trent, Staffordshire.

He also highlighted the new four-star, 210-bedroom hotel being developed as a part of the expanding Manchester Business School by the University of Manchester and Bruntwood. "Here, a long-term room night guarantee has been created to enable the partners to deliver a better-quality hotel which will add considerable value to the wider scheme," Moore said.

UK leads European hotel development >>

New partnership formed to develop hotels >>

By Janet Harmer

E-mail your comments to Janet Harmer here.

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