Construction in the Hotel and Entertainment Sector - UK 2008-2012

SUMMARY

AMA Research have published the second edition of the report 'Construction In The Hotel and Entertainment Sector - UK 2008-2012'. Offering excellent value for money, this report represents a current and informed assessment of this industry sector, incorporating original input and primary research.

Written by marketing professionals with considerable experience of the building and construction industry, this report provides suppliers and organisations with a detailed and comprehensive review of this changing industry. It answers the need for QUALITATIVE AND QUANTITATIVE ASSESSMENT - both essential requirements for good business planning.

The report includes:

Detailed assessment of hotel and entertainment new build construction output and RMI, together with estimated forecasts for growth over the next few years. Review of capital expenditure commitments and plans in the relevant sub-sectors of the hotel and entertainment industry, analysis of the key leisure sector chains and operators, together with current and projected estate portfolios. Review of the structure and size of all sectors within the entertainment and leisure market (hotels, pubs, restaurants, gaming & betting, cinemas, health clubs) together with growth opportunities over the next few years. Contractor capability in the hotel and entertainment sector, key contractors, characteristics etc. Exploration of key factors affecting hotel and entertainment construction including sustainable tourism issues, planning regulations, other legislative issues and OSM factors.

Key areas of coverage in the report include:

HOTEL & ENTERTAINMENT CONSTRUCTION IN THE UK

• CONSTRUCTION MARKET OVERVIEW - Value of Output - Construction New Work, Construction Output by Sector in 2007, RMI.
• ENTERTAINMENT CONSTRUCTION MARKET - Entertainment Sector new build and Refurbishment and Fit Out in the UK.
• CAPITAL EXPENDITURE and building programmes in the entertainment sector.
  • Capital Expenditure in each of the Hotel Sector, the Health Club & Spa Sector, the Betting, Gaming & Casino Sector, the Cinema Sector, the Pub Sector.
• MIXED USE DEVELOPMENT.
• FUTURE PROSPECTS, FORECASTS TO 2012 AND CONCLUSIONS.

FACTORS AFFECTING HOTEL & ENTERTAINMENT CONSTRUCTION

• PLANNING LAWS.
• PPG6/PPS6.
• Planning Use Classes (Reforms for Casino Planning).
• OTHER LEGISLATIVE REQUIREMENTS, Building Regulations, Disabled Access, Gaming Legislation, Smoking Ban, Alcohol Licensing, Proposed Bed Tax.
• SUSTAINABLE TOURISM.
• OFF-SITE MANUFACTURING (OSM).

THE HOTEL & ENTERTAINMENT SECTOR IN THE UK

• MARKET OVERVIEW AND SIZE.
• VALUE OF TOURISM TO THE UK, Consumer Spending, Value of Tourism.
• MARKET TRENDS AND THREATS - THE HOTEL MARKET.
  • Structure and Size. Key Trends and Drivers of Growth.
  • Performance of the Hotel sector.
  • Corporate Activity.
  • Major Chains and Sectors within the Hotel Market.
  • Budget Hotels, Chain Hotels, Luxury Hotels.
• HEALTH CLUBS & SPAS.
  • Sector Overview & Size. Hotel Health Clubs.
  • Leading Health Club Operators in the UK.
• BETTING, GAMING & CASINO SECTOR.
  • Sector Overview and Size. Casinos and Gaming Halls.
  • Bingo Halls.
• CINEMAS AND MULTIPLEXES.
  • Sector Overview and Size. Development of the 'Multiplex' Market.
  • Leading Operators in the Cinema Exhibition Market.
• PUBS, BARS AND CLUBS.
  • Sector Overview and Size. Key Players in the Pub Market.
  • Industry Trends in the Pub Sector.
• RESTAURANTS AND CAFES.
  • Sector Overview and Size.
  • Industry Trends in the Restaurant Sector.

CONTRACTOR CAPABILITY IN THE HOTEL & ENTERTAINMENT SECTOR

• STRUCTURE OF THE CONTRACTING INDUSTRY IN THE UK.
• LEADING CONSTRUCTION CONTRACTORS IN THE ENTERTAINMENT & LEISURE MARKET.
• OVERVIEW, Key Contractor Profiles.

TABLE OF CONTENTS

1. INTRODUCTION 5

2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS 7

• 2.1 EXECUTIVE SUMMARY 7
• 2.2. FUTURE PROSPECTS 10

3. ECONOMIC ENVIRONMENT 13

• 3.1 GDP 13
• 3.2 INFLATION & INTEREST RATES 14
• 3.3 UNEMPLOYMENT 15
• 3.4 HOUSEHOLD CONSUMPTION 15
• 3.5 STERLING 16
• 3.6 POPULATION PROFILE 17
• 3.7 HOUSING & CONSTRUCTION 18
  • 3.7.1 New House Build 19
  • 3.7.2 House-Moving Levels 20
  • 3.7.3 Value of Housing Output - New Work and RMI 21
  • 3.7.4 Value of Output - Public Non Housing Sector 22
  • 3.7.5 Environmental Concerns and Legislation 22
• 3.8 CONCLUSIONS 22

4. THE HOTEL & ENTERTAINMENT SECTOR IN THE UK 24

• 4.1 MARKET OVERVIEW AND SIZE 24
• 4.2 VALUE OF TOURISM TO THE UK 25
  • 4.2.1 Consumer Spending 25
  • 4.2.2 Value of Tourism 25
• 4.3 MARKET TRENDS AND THREATS 27
• 4.4 THE HOTEL MARKET 27
  • 4.4.1 Structure and Size 27
  • 4.4.2 Key Trends and Drivers of Growth 29
  • 4.4.3 Performance of the Hotel sector 2007/08 30
  • 4.4.4 Corporate Activity 31
  • 4.4.5 Major Chains and Sectors within the Hotel Market 31
  • 4.4.6 Budget Hotels 32
  • 4.4.7 Chain Hotels 34
  • 4.4.8 Luxury Hotels 37
• 4.5 HEALTH CLUBS & SPAS 38
  • 4.5.1 Sector Overview & Size 38
  • 4.5.2 Hotel Health Clubs 39
  • 4.5.3 Leading Health Club Operators in the UK 41
• 4.6 BETTING, GAMING & CASINO SECTOR 42
  • 4.6.1 Sector Overview and Size 42
  • 4.6.2 Casinos and Gaming Halls 42
  • 4.6.3 Bingo Halls 44
• 4.7 CINEMAS AND MULTIPLEXES 46
  • 4.7.1 Sector Overview & Size 46
  • 4.7.2 Development of the 'Multiplex' Market 46
  • 4.7.3 Leading Operators in the Cinema Exhibition Market 48
• 4.8 PUBS, BARS AND CLUBS 49
  • 4.8.1 Sector Overview & Size 49
  • 4.8.2 Key Players in the Pub Market 50
  • 4.8.3 Industry Trends in the Pub Sector 51
• 4.9 RESTAURANTS AND CAFES 52
  • 4.9.1 Sector Overview & Size 52
  • 4.9.2 Industry Trends in the Restaurant Sector 53

5. HOTEL & ENTERTAINMENT CONSTRUCTION IN THE UK 54

• 5.1 CONSTRUCTION MARKET OVERVIEW 54
  • 5.1.1 Value of Output - Construction New Work 54
  • 5.1.2 Construction Output by Sector in 2007 55
  • 5.1.3 RMI 56
• 5.2 ENTERTAINMENT CONSTRUCTION MARKET 57
  • 5.2.1 Entertainment Sector Refurbishment and Fit Out in the UK 60
• 5.3 CAPITAL EXPENDITURE AND BUILDING PROGRAMMES IN THE ENTERTAINMENT SECTOR 61
  • 5.3.1 Overview 61
  • 5.3.2 Capital Expenditure in the Hotel Sector 62
  • 5.3.3 Capital Expenditure in the Health Club & Spa Sector 68
  • 5.3.4 Capital Expenditure in the Betting, Gaming & Casino Sector 70
  • 5.3.5 Capital Expenditure in the Cinema Sector 73
  • 5.3.6 Capital Expenditure in the Pub Sector 73
• 5.4 MIXED USE DEVELOPMENT 75

6. CONTRACTOR CAPABILITY IN THE HOTEL & ENTERTAINMENT SECTOR 77

• 6.1 STRUCTURE OF THE CONTRACTING INDUSTRY IN THE UK 77
• 6.2 LEADING CONSTRUCTION CONTRACTORS IN THE ENTERTAINMENT & LEISURE MARKET 78
  • 6.2.1 Overview 78
  • 6.2.2 Key Contractor Profiles 79

7. FACTORS AFFECTING HOTEL & ENTERTAINMENT CONSTRUCTION 85

• 7.1 OVERVIEW 85
• 7.2 PLANNING LAWS 85
  • 7.2.1 PPG6/PPS6 86
  • 7.2.2 Planning Use Classes (Reforms for Casino Planning) 86
• 7.3 OTHER LEGISLATIVE REQUIREMENTS 87
  • 7.3.1 Building Regulations 87
  • 7.3.2 Disabled Access 88
  • 7.3.3 Gaming Legislation 89
  • 7.3.4 Smoking Ban 89
  • 7.3.5 Alcohol Licensing 89
  • 7.3.6 Proposed Bed Tax 90
• 7.4 SUSTAINABLE TOURISM 90
• 7.5 OFF-SITE MANUFACTURING (OSM) 92

TABLES AND CHARTS

• TABLE 1 VALUE OF THE UK ENTERTAINMENT SECTOR TO THE ECONOMY & CONSTRUCTION INDUSTRY 7
• CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2012 14
• CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2012 16
• TABLE 4 EXCHANGE RATE FLUCTUATIONS 2002-2008 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 17
• CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 CENSUS ('000) 18
• TABLE 6 HOUSE BUILDING COMPLETIONS AND FORECASTS 2002-2012 - UK ('000 DWELLINGS) 19
• TABLE 7 NUMBER OF PROPERTY TRANSACTIONS IN ENGLAND AND WALES 2002-2008 ('000) 20
• TABLE 8 VALUE OF UK NEW HOUSING OUTPUT AND RMI OUTPUT (£M) 2002-2008 21
• CHART 9 UK ENTERTAINMENT MARKET - REVENUE BY SECTOR (£ BILLION) 2006 24
• TABLE 10 UK INBOUND TOURISM - VOLUME AND VALUE 2001-2008 26
• TABLE 11 UK HOTEL SECTOR - NUMBER OF STAR RATED/GROUP OWNED HOTELS AS AT DECEMBER 2007 28
• CHART 12 TURNOVER IN THE UK HOTEL SECTOR - 2000 - 2010 (£ BILLION) 29
• TABLE 13 UK HOTEL SECTOR - PERFORMANCE INDICATORS (LONDON & PROVINCES): APRIL 2007-MARCH 2008 30
• TABLE 14 UK BUDGET HOTELS - LEADING BRAND PORTFOLIOS BY NUMBER OF ROOMS 33
• TABLE 15 UK MIDSCALE HOTELS - LEADING BRAND PORTFOLIOS BY NUMBER OF ROOMS 35
• TABLE 16 UK PRIVATE HOTELS GROUPS - DEVELOPING MULTI-BRAND PORTFOLIOS BY NUMBER OF ROOMS 37
• TABLE 17 UK LUXURY HOTELS - LEADING BRAND PORTFOLIOS BY NUMBER OF ROOMS 38
• CHART 18 HEALTH & FITNESS MARKET - NEW PRIVATE SECTOR CLUB OPENINGS 2000-2008 39
• TABLE 19 MAJOR UK HOTEL HEALTH CLUB BRANDS 2008 40
• TABLE 20 LEADING PRIVATE HEALTH & FITNESS CLUB BRANDS/ OPERATORS 2008 41
• TABLE 21 LEADING CASINO OPERATORS 2008 43
• TABLE 22 LEADING BINGO HALLS 2008 45
• TABLE 23 GROWTH OF THE UK CINEMA MARKET 2002-2007 46
• CHART 24 UK CINEMA SCREENS BY LOCATION 2007 47
• TABLE 25 CINEMA SCREENS BY TYPE OF BUILDING 2002 - 2007 47
• TABLE 26 LEADING CINEMA EXHIBITION OPERATORS 2008 48
• CHART 27 TURNOVER IN THE UK PUB SECTOR 2000 -2007 49
• TABLE 28 LEADING PUB OPERATORS BY PROPERTY PORTFOLIO 2008 50
• TABLE 29 TOP UK RESTAURANT OPERATORS - 2007 53
• CHART 30 VALUE OF CONSTRUCTION OUTPUT NEW WORK 2002-2012 (£ BILLION) 54
• CHART 31 VALUE OF CONSTRUCTION OUTPUT NEW WORK BY SECTOR - % BY VALUE 2007 55
• CHART 32 CONTRACTORS OUTPUT RMI 2002 - 2012 CURRENT PRICES (£M) 57
• TABLE 33 ENTERTAINMENT SECTOR WORK - CONTRACTORS OUTPUT 2000 - 2012 (£M) 58
• TABLE 34 ENTERTAINMENT SECTOR WORK - VALUE OF NEW ORDERS OBTAINED - 2008 (£M) 60
• CHART 35 CAPITAL EXPENDITURE IN THE UK LEISURE MARKET - BY SECTOR 2007 61
• TABLE 36 CAPITAL EXPENDITURE & EXPANSION PLANS OF LEADING HOTEL GROUPS 63
• TABLE 37 HOTEL DEVELOPMENT PIPELINE - TOTAL ESTIMATED NEW BUILD HOTELS & ROOMS BY 2011 64
• TABLE 38 UK HOTELS - CHANGE IN NEW BUILD SIZE (BY AVERAGE NO. ROOMS) 2004-2008 66
• TABLE 39 UK HOTELS CONSTRUCTION COSTS BY TYPE OF DEVELOPMENT £M (2007 PRICES) 67
• TABLE 40 CAPITAL EXPENDITURE & EXPANSION PLANS OF LEADING HEALTH CLUB OPERATORS 69
• TABLE 41 CAPITAL EXPENDITURE & EXPANSION PLANS OF LEADING CASINO OPERATORS 72
• TABLE 42 CAPITAL EXPENDITURE & EXPANSION PLANS OF LEADING PUB CHAINS 74
• TABLE 43 EXAMPLES OF MIXED-USE SCHEMES IN DEVELOPMENT - 2008 76
• TABLE 44 MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 3RD QUARTER 2006 78
• TABLE 45 LEADING CONTRACTORS' SHARE OF ENTERTAINMENT SECTOR CONSTRUCTION WORK IN 2007 (£M) 79