| 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 |