The
hotel & leisure sector was one of the best performing over 2010
across the construction industry, with new hotel projects
contributing around 35% of work in this sector.
Leading the
recovery in the hotel sector was the London market, with both
occupancy levels and average room rates (ARR) increasing as the
weakness of the pound encouraged international visitors to the
Capital.
The
short-term UK build pipeline between 2011 and 2013 is for around
20,000–25,000 new hotel rooms to be built (new rooms at early
concept stage, planning, design or construction), of which around
12,000 are expected to be provided in London.
In
2011, the total UK Electronic Security and Active Fire Protection
market is estimated to be worth some £2.1 billion at manufacturers
selling prices. The UK electronic security and active fire
protection market had shown excellent levels of growth until the
recent economic recession. However, the lower level of
construction across a number of key sectors eroded the value of
the market between 2008 and 2010.
Technological developments have continued to drive the replacement
market, particularly remote monitoring – including wireless
technology, along with fully integrated systems. Increasing
competition and a higher level of price competition has resulted
in a greater focus on providing a wider range of products and
services, including service and maintenance contracts. End-users
have become increasingly focused on the overall lifecycle cost of
a system including product, installation, operational costs,
servicing and management costs.
The
market for electronic security and fire protection products in the
hotel sector was estimated at £111m in 2010.
Demand for
electronic security and active fire products in the hotel sector
is likely to increase in late 2011 and early 2012 with a number of
major refurbishments planned for London in the build up to the
Olympics.
Overall, electronic security accounts for just over half of the
product mix in the hotel sector with CCTV taking the largest share
by value. In the fire sector, the share taken by fire
extinguishing equipment in the hotel sector is higher than the
overall market, primarily due to the wider use of sprinkler
systems.
The performance
of the London hotel market is expected to improve further, with
occupancy levels forecast to rise even higher and profitability
likely to increase as corporate demand returns. Major events such
as the Olympic and Paralympic Games in 2012 are providing further
impetus for growth. There are early signs of a recovery taking
place in the regional hotel market, with cities such as Edinburgh,
Cardiff and Birmingham driving growth in 2010.
In
addition, there will be new opportunities over the next two years,
with the Commonwealth Games in Glasgow providing a boost to the
regions.
It
is estimated that the budget hotel sector pipeline will grow by
around 5% per annum until 2020, when the estimated number of rooms
could reach around 190,000. The pace of growth in the budget
sector is likely to be higher than in non-budget brands, as
mid-market hotels continue to suffer the effects of the downturn
and a number of these existing hotels are converted or redeveloped
to budget brands.
By
2015 the market value is forecast to be around £2.3 billion at end
user prices, which would represent an increase of around 9%
compared to the estimated market size in 2011.
