Hotel Development Site For Sale, The Hoe, Plymouth, PL1 3DL - October 2020
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COLLIERS INTERNATIONAL | HOTELS Hotel Development Site For Sale, The Hoe, Plymouth, PL1 3DL October 2020
Overview
Colliers International has been retained by Plymouth City Council (“PCC”) to bring
to market for sale a prime hotel-led development site in Plymouth, situated in the
popular Plymouth Hoe area. The site extends to just under 1 Hectare (9,100 sqm)
and benefits from panoramic sea views.
The site has been in use as a hotel since it was built in 1969 and was most
recently home to the former Quality Inn Hotel (now demolished). Redevelopment
of the site is positively supported by the city’s planning policy, which seeks to
protect hotel use for this site but is open to a mix of uses in addition.
THE SITE
Plymouth is the largest port city on the south coast of England, also known as
Britain’s Ocean City. The city offers a large range of tourist attractions and plays
host to numerous high-profile events. It also boasts one of the largest universities
in the country and is home to the largest naval base in Western Europe. Plymouth
benefits from strong road and rail connections, as well as an international ferry
port and two international airports located within 1-2 hours’ driving distance.
Opportunity Highlights
▪ Exciting opportunity to acquire the freehold for a prime (vacant) development ▪ Plymouth’s hotel market is extremely undersupplied when compared to similar
site in Plymouth, which has been zoned for a hotel-led development. destinations, providing an excellent opportunity for a new, high-quality hotel in
the city.
▪ Excellent waterfront location for hotel development, adjacent to Plymouth Hoe
and with exceptional sea views in multiple directions. ▪ Plymouth will continue to benefit from the growing importance of staycations,
which has been highlighted during the current Covid-19 crisis. Despite 2020
▪ The site occupies a strategic location close to Plymouth’s key tourist attractions, being impacted by the pandemic, hotels in Plymouth achieved an average
as well as a good accessibility, with the city’s main railway station within a short occupancy of 94% for the month of August – the highest of any major city in
5-minute drive. the UK.
▪ Plymouth is an attractive hotel market, characterised by a balanced mix of ▪ In August 2020, Plymouth was also the only hotel market across the UK to
leisure and business related demand, and a growing average room rate. Midscale achieve higher RevPAR levels when compared to the same month in 2019.
hotels in the city recorded peak occupancy levels in 2019 (c.84%), alongside an
improving ADR of £68.47. ▪ Plymouth has been earmarked for significant regeneration over the next 5
years, with Plymouth City Council investing c.£100 million each year in a range
of initiatives.
The Site
Prime Waterfront Location
▪ The site occupies a prominent and elevated seafront location in Plymouth, overlooking the
Plymouth Hoe Waterfront; an established tourist location within the city.
▪ The site benefits from proximity to Plymouth’s key visitor attractions, including Drake Circus
Shopping Centre, Theatre Royal Plymouth, Plymouth Pavilions, National Marine Aquarium,
The Box, The Barcode and the Mayflower Memorial.
▪ Prime location for a hotel development, with potential for an enabling development.
▪ The site is held freehold and occupies just under 1 Hectare (9,100 sqm).
Plymouth
Railway Station
Excellent Accessibility
University of
Plymouth Car access to the site is provided via the A38 Devon
Expressway, which connects to the M5 motorway at
Exeter, providing access to the national motorway
Drake Circus network.
Jury’s Inn
Plymouth Railway Station, which provides connections to
Sutton Harbour
key destinations across the UK, is situated within a 5-
Plymouth Pavilions Theatre Royal minute drive from the site.
Plymouth Gin Distillery The Ferry Port, which offers regular sailings to France and
Duke of
Cornwall Spain, is situated just a short walk from the site.
National Marine
Crowne Plaza
Ferry Port Aquarium
Mayflower Memorial
Exeter Airport is located within a 1-hour drive, while
Bristol International Airport can be reached within 2
THE SITE hours. Cornwall Airport Newquay, which is the main
Royal Citadel
commercial airport for Cornwall, is within a 1 and a half
hour drive.
Guidelines for Proposed Plans
The site has been allocated in the Joint Local Plan and the Site Planning Statement (www.plymouth.gov.uk/planningandbuildingcontrol) for a hotel-led, mixed-use
development. This requires that provision should be made for the following key factors in addition to a high quality hotel:
Residential ▪ Provision can be made for in the order of 88 homes.
▪ A development which conserves and where appropriate enhances the character and appearance of the Hoe
Conservation Area and Registered Park and Garden as informed by a detailed heritage character assessment
Conservation to be undertaken for the proposal.
▪ A new pedestrian / cycle link between Walker Terrace and Leigham Street at the site’s northern
boundary.
Public ▪ Publicly accessible active ground floor uses to be encouraged.
▪ New enhanced and redesigned public realm on and around the site, including removal of the covered walkway
against the retaining wall forming the site’s southern boundary and strong pedestrian and cycle links to the
Hoe Park.
▪ A high quality and memorable building design will be sought, given the site’s relationship with the Hoe
Building Design Conservation Area, and wide prominence, including from the sea and coastline.
▪ Tree planting on the site’s street frontages and open spaces.
▪ Innovative solutions to minimise the visual impact of car parking and maximise secure cycle parking.
Other
▪ An innovative lighting scheme.
About Plymouth
Overview Tourism
▪ Plymouth is a port city in England on the south coast of Devon, also known as ▪ Plymouth is a popular visitor destination, holding a strong appeal to both
Britain’s Ocean City. domestic and international tourists. Domestic visitation accounts for the
▪ Plymouth has a growing population of 262,100, with an economic output of £5.2 majority of total tourism to Plymouth (c.85%) .
billion, making it the most significant urban area on the South West peninsula,
with a further 100,000 people living within the city’s travel to work area. By
building over 26,700 new homes, Plymouth aims to grow its population to
300,000 by 2034.
▪ Plymouth’s economy is primarily driven by the service industry (c.80%), followed
by public administration, education and health. Plymouth also has the largest
concentration of manufacturing and engineering employment in South England.
▪ Plymouth remains an important centre for shipbuilding and maritime activity. The
city is also home to the largest operational naval base in Western Europe (HMNB
Devonport), which also has the largest cluster of maritime and marine businesses
in the South West.
Regeneration
▪ Over the next 5 years, Plymouth will see an ambitious capital investment
Source: Visit Britain
programme, driven by PCC, with c. £100 million to be invested each year for new
development and infrastructure which will support a thriving environment for
businesses and residents.
▪ Some of the largest regeneration projects in Plymouth include: Brunel Plaza
(£100m+), The Box (£46m)- now open, The Barcode (£53m)- now open, Plymouth
Cross (£50m), City Centre Regeneration (c.£44m) and Colin Campbell Court
(£100m).
▪ There are also plans to redevelop Millbay port. The new development will
increase port capacity and modernise the existing ferry facilities for use not just
with ferry passengers but also for the emerging cruise market.
▪ The University of Plymouth has just started works on their £40m investment in
Intercity Place to provide state-of-the-art teaching facilities for medical students
and pedestrian links to the city centre.
Source: International Passenger Survey
Plymouth Hotel Demand Generators
Leisure
▪ A wide range of visitor attractions including Plymouth Hoe, Theatre Royal Plymouth (one of the
UK’s best attended regional theatres), National Marine Aquarium (the largest in the UK), Royal
Citadel and The Barbican.
▪ Other key local attractions include Royal William Yard which hosts the largest collection of Grade I
Listed Naval buildings in Europe and is an established cultural hotspot, and Sutton Harbour
Marina, which is home to leading yachting events.
▪ Shopping: Plymouth is also the largest retail centre in the South West region, outside of Bristol,
experiencing a 9.9% increase in the number of shoppers in 2019. Drake Circus Shopping Centre is
one of the most popular shopping centres in the area and has a footfall of about 17 million
annually.
▪ Events: The city hosts several high-profile and award-winning events each year, including Pirates
Weekend Plymouth, Flavour Fest, Armed Forces Day, Plymouth Seafood Festival, British Firework
Championships and world-class sailing events such as OSTAR and TWOSTAR. Sail GP, one of the
world’s most impressive sailing events, will also be stopping in Plymouth in July 2021.
▪ Plymouth is well placed to facilitate touring Devon and Cornwall by car, with easy access to the
motorway network and key arterial routes and is a popular base for coach and group tours to
explore Devon and the English Riviera sub-region.
Business
▪ Plymouth has a long standing established reputation as a leading base for marine related
industries. The Dockyard and naval port (Europe’s largest) are key overnight demand generators.
▪ Major employers include Babcock International and Princess Yachts, both leaders within their
respective fields and among the largest private sector employers in Plymouth.
▪ Further private sector business originates from the medical, manufacturing, energy and
construction industries. Some companies of note in the area include British Gas, EDF Energy and
Wrigley’s.
▪ Key public sector demand relates to healthcare (the NHS including Derriford Hospital), education
(Plymouth University, Colleges and research bodies) and local government departments.
▪ A recent survey of local businesses highlighted the lack of quality hotel accommodation in the city
as one of the few negatives.
Plymouth- An Undersupplied Hotel Market
Hotel Market Performance (Midscale Hotels) Key Hotels around the Site
Copthorne
Hotel
Jury’s Inn
New Continental Premier Inn
by BW Sutton Harbour
Travelodge
Premier Inn
Duke of Lockyers Quay
Cornwall Crowne Plaza
Source: STR Global Hotels in sample: Jury’s Inn (247 keys), Copthorne Hotel (135 keys), Duke of Cornwall (72 keys),
Crowne Plaza (211 keys) and Travelodge (96 keys)
THE SITE
▪ Midscale hotels in Plymouth have consistently enjoyed strong demand over the last 8
years, with occupancy levels above 75% from 2013 onwards, highlighting an
undersupplied market. The occupancy was at its peak in 2019, in the order of 84%.
Source: STR Global- AM:PM Hotels Database
▪ The Plymouth midscale market has also benefitted from a growing average room rate,
with a CAGR of 4.0% during the period; which is above the average inflation rate. ▪ The majority of Plymouth’s branded hotel stock is situated within close
proximity of the site, highlighting its suitable location for hotel development.
▪ A positive and upward trend in the RevPAR, which has increased by almost 60% between ▪ Plymouth’s hotel market is concentrated at the 3-star and budget level (80%),
2012 and 2019. with a lack of hotels within the full-service, upscale sector.
▪ RevPAR levels increased in August 2020 (+6.8%) when compared to the same month in ▪ Plymouth’s hotel market has experienced minimal supply growth, with the last
2019. This is despite the ongoing Covid-19 crisis, highlighting Plymouth’s resilience hotel to open in 2007 (Jury’s Inn), providing an excellent opportunity for new
during this period, as well as its popularity within the growing staycation market. development within this sector.
Process for Interested Parties
Disposal Methodology
The successful party will be required to enter into a Development Agreement with Plymouth City Council, which will set out the obligations of the parties,
including design, planning and construction. Once detailed planning has been granted, the Council will grant a Building Lease to cover the development of the
site. The freehold of the site will be transferred to the successful party upon practical completion of the hotel.
Submission Requirements Assessment Criteria
The LOI for the site acquisition should include the following: The following criteria will be taken into consideration during the selection
process:
▪ Details of the Purchaser
▪ The financial offer and any conditions ▪ The financial offer
▪ Evidence of proof of funds to purchase the site ▪ The conditions attached to the financial offer
▪ Access to development finance ▪ The proposed quality and market positioning of the hotel
▪ Evidence of ability to transact by the end of 2020 / early 2021 ▪ Evidence of funding and ability to deliver the proposed development
▪ Acquisition track record ▪ The level and type of supporting facilities
▪ Hotel and mixed use development experience
▪ Intentions for the redevelopment of the site The Council’s key objective for the site is the delivery of a high quality hotel.
▪ Details of the proposed hotel operator and their experience Proposals may also include an element of residential use however this is not a
▪ Proposed programme showing planning, construction and delivery of requirement. If residential uses are to be included, the Council’s assessment is
the proposed project likely to consider how these contribute to the overall quality and deliverability
of the proposal.”
Plymouth City Council reserves the right to change this criteria in the light of proposals
Access to additional information received. The Council will not be bound to accept the highest offer but rather that which
best suits its objectives for the site. The Council may choose not to accept any of the offers
Access to the data room will be provided to all interested parties. Please received.
contact Siddhika Shah for further information.
Process for Interested Parties
Submission Deadline Contact Information
Interested parties are invited to submit a Marc Finney
Head of Hotels & Resorts Consulting
Letter of Interest by 5pm on Wednesday
DD: +44 20 7344 6601
18 November 2020 for the attention of: Mob: +44 7825 602797
marc.finney@colliers.com
Marc Finney
Head of Hotels & Resorts Consulting Anthony Shapland
Colliers International Head of Development Advisory
50 George Street DD: +44 20 7344 6592
London, W1U 7GA Mob: +44 7768 795274
anthony.shapland@colliers.com
marc.finney@colliers.com
Siddhika Shah
www.colliers.com/uk/hotels Senior Consultant | Hotels
DD: +44 20 7487 1831
Mob: +44 7717 863580
siddhika.shah@colliers.com
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