Bathroom products in the hotel
sector achieved good growth between 2005 and 2007 supported by
the expansion in the budget sector and a high level of
refurbishment activity. Market growth slowed in 2007 and 2008,
with both the refurbishment and new build sectors affected by
the recession and a lack of funding available for large scale
projects.
The
market for commercial bathroom products was worth £313m in 2010,
a fall of 2% since 2009. The market for bathroom products in the
hotel sector increased by £2m in 2010 to £67m, accounting for
22% of the overall commercial bathrooms market. During 2010,
however, the hotel sector began to make a slow recovery as
corporate demand increased and confidence in the hotel sector
improved. This renewed optimism in both the construction and
refurbishment markets, particularly in the high-end and Budget
market sectors, supports demand for both luxury and economy
products in the bathroom sector.
Hotel
bathrooms are considered an important element of the overall
package and can impact on the total perception and image of the
hotel. Key elements include high quality fittings and finishes.
Functionality is also a key concern as hotel bathrooms must be
durable, easy to clean and maintain. There has been a shift
towards the wider use of shower enclosures, particularly in the
budget sector, where bathrooms are generally smaller. Design is
largely dependent on the style of hotel, although generally
contemporary style fittings are the most popular with chrome
finished brassware and white sanitaryware.
In the
tiles sector, contract applications such as hotels, leisure
facilities such as gyms, spas and restaurants have been more
responsive with tiling options including combinations of ceramic
& porcelain tiles and natural stones in order to provide a more
upmarket and modern design scheme. In the hotel sector, there is
a trend towards larger size tiles in both the wall and floor
sectors. Accent tiles and mosaics are often included to add a
design element around the basin or bath area or to break up
solid walls.
Demand
for bathroom products in the hotel sector is likely to increase
in late 2011 and early 2012 with a number of major
refurbishments and new hotels planned for London in the build up
to the Olympics. A number of these hotels are in the luxury
sector which will support the upper end of the market for
bathroom products in particular.
In
London, an upturn in the sector combined with the weakness of
Sterling is attracting overseas buyers, especially from the
Middle and Far East. In addition, there will be new
opportunities over the next two years, with the Commonwealth
Games in Glasgow providing a boost to the regions. Growth in the
budget sector will be most evident in London and city centre
locations, where there is a shortage of quality budget hotel
rooms and demand remains strong.
In the
tiles sector, high profile commercial projects such as the
finishing of facilities on the Olympic Park are likely to boost
value growth in the commercial sector from Q2 2011 onwards.
Pent-up demand from postponed refurbishments projects in the
hotel sector is also likely to come on-stream from early 2012.
The completion of projects associated with the Olympic Park and
hotels sector, particularly the proposed expansion by the budget
hotels sector 2011-12, in preparation for the Games is likely to
provide a significant boost for ceramic and porcelain tiles in
the short-term.
