Construction in the Hotel, Entertainment and Leisure Sector Report - UK 2014-2018 Analysis
- ID: 2965344
- August 2014
- Region: United Kingdom
- 87 Pages
- AMA Research
In overall terms, entertainment and leisure has performed relatively well during the downturn compared with other sectors, with construction output values reaching around £5.7bn in 2013, a 14% rise on 2012. However, expansion and investment have been largely confined to the budget hotels, health and fitness and more recently the cinema segments, with less buoyant activity in mid-market hotels, pubs and the gaming sectors where major operators have reigned in capital spending plans.
The largest sector within the UK leisure industry in terms of revenue is the food service industry, worth £45bn in 2014, of which sales in the restaurant and fast food sector account for over 50%. The restaurant sector has experienced strong performance over recent years, driven by the growing trend towards consumers eating out more often. The second largest sector is pubs, clubs and bars sector, followed by sporting activities and the hotel sector.
After years of being constrained by capital budgets, hotels have now refocused portfolio investment through refits and refurbishment programmes to maximize occupancy levels rather than through new build properties – though the exception has been budget hotels where value chains continue to expand their portfolios through new development.
Hotel construction is expected to be one of the fastest-growing sectors in 2014 boosted over the next few years by competition between budget hotel chains. The UK hotel sector is seeing a number of new international brands securing key sites in London and a number of established brands developing and rolling out boutique brands.
A further trend emerging from the recession is the rise in popularity of the budget gym sector, where membership prices are around 50% cheaper than for traditional clubs. As in the hotel sector, the budget gym market is forecast to increase market share as consumers look to spend existing disposable income more wisely. Many budget operators have aggressive expansion plans for 2014 and beyond.
The betting and gaming sector has benefited from strong growth in online gambling in recent years, as well as the reduction in the rate of duty to 10% on bingo, which was announced in the 2014 budget. However, while revenues in the sector are forecast to grow, new construction and RMI expenditure within the sector could be negatively affected.
The restaurant sector has experienced a difficult trading environment over the past 5 years and the pub sector in particular has seen considerable restructuring. There has been a shift in emphasis from drinks-led to food-led across the pub sector. While spending has not reached pre-recessionary levels, consumers are returning to restaurants driven by fine dining and corporate entertainment, and refurbishment activity within the sector is largely driven by international businesses looking to expand in the UK.
The leisure and tourism industry is highly fragmented, with a number of large commercial chains dominating the hotel and pub sectors in particular and a large number of smaller specialist operators in the restaurant, gaming and hotel and lodging sectors.
Whilst the outlook for the hotel and leisure sector is now more positive, the implications for construction, fit-out and refurbishment work in the sector remains mixed with significant expansion plans announced by budget hotels, value gym, food-led pubs and cinema sectors contrasting with less buoyant prospects for mid-market hotels and the betting and gaming industry.
In 2014, the fortunes of the UK leisure market are expected to receive a boost from major sporting events such as the Commonwealth Games in Glasgow, stages of the Tour de France in Yorkshire, Cambridge and London, the Ryder Cup at Gleneagles, the World Cup and a number of NFL games in London, which could have a significant positive impact on both regional and London leisure market performance.
The outlook for entertainment work remains positive with annual output increases of 2-5% currently forecast to 2018. UK tourism spending is expected to continue to grow strongly to 2025, with inbound tourism the fastest growing sector with growth rates of 5-6% forecast. Much of this growth is being driven by higher consumer spending as the recovery from recession gathers pace and is becoming firmly established. SHOW LESS READ MORE >
2. SUMMARY AND FUTURE PROSPECTS
3. THE HOTEL & ENTERTAINMENT SECTOR IN THE UK
3.1 MARKET OVERVIEW AND SIZE
3.2 VALUE OF TOURISM TO THE UK
3.2.1 Value of Inbound Tourism
3.2.2 Prospects for UK Tourism Spending
3.2.3 Outlook for the Hotel & Entertainment Sector
3.3 THE HOTEL SECTOR
3.3.1 Structure and Size
3.3.2 Value of the Hotel Sector and Key Drivers of Growth
3.3.3 Performance of the Hotel Sector in 2013-2015
3.3.4 Major Chains and Sectors within the Hotel Industry
3.3.5 Budget Hotels
3.3.6 Mid Range Hotels
3.3.7 Luxury Hotels
3.4 HEALTH CLUBS & SPAS
3.4.1 Sector Overview and Size
3.4.2 Leading Health Club Operators in the UK
3.4.3 Budget Gym operators
3.5 BETTING, GAMING & CASINO SECTOR
3.5.1 Sector Overview and Size
3.5.2 Casinos and Gaming Halls
3.5.3 Bingo Halls
3.6 CINEMAS AND MULTIPLEXES
3.6.1 Sector Size and Overview
3.6.2 Development of the ‘Multiplex’ and ‘Digital’ Markets
3.6.3 Leading Operators in the Cinema Exhibition Market
3.7 PUBS, BAR AND CLUBS
3.7.1 Sector Overview & Size
3.7.2 Key Players in the Pub Market
3.7.3 Industry Trends in the Pub Sector
3.8 RESTAURANTS AND CAFES
3.8.1 Sector Overview & Size
3.8.2 Industry Trends in the Restaurant Sector
4. HOTEL & ENTERTAINMENT CONSTRUCTION IN THE UK
4.1 CONSTRUCTION MARKET OVERVIEW
4.1.1 Value of Output - Construction New Work and RMI
4.1.2 Construction Output by Sector in 2013
4.2 ENTERTAINMENT AND LEISURE CONSTRUCTION MARKET
4.2.1 Entertainment Sector Refurbishment and Fit Out in the UK
4.3 BUILDING PROGRAMMES AND CAPITAL EXPENDITURE IN THE ENTERTAINMENT SECTOR
4.3.2 Building Programmes and Capital Expenditure in the Hotel Sector
4.3.3 Building Programmes and Capital Expenditure in the Health Club & Spa Sector
4.3.4 Building Programmes and Capital Expenditure in the Betting, Gaming & Casino Sector
4.3.5 Building Programmes and Capital Expenditure in the Cinema Sector
4.3.6 Capital Expenditure in the Pub and Restaurant Sector
5. CONTRACTOR CAPABILITY IN THE HOTEL & ENTERTAINMENT SECTOR
List of Tables and Charts:
TABLE 1: VALUE OF THE UK HOTEL & ENTERTAINMENT SECTOR TO THE ECONOMY & CONSTRUCTION INDUSTRY - 2014
CHART 2: UK ENTERTAINMENT MARKET – REVENUE BY SECTOR - FOOD SERVICE, HOTELS, PUBS, HEALTH CLUBS ETC (£BN) 2013
TABLE 3: UK INBOUND TOURISM –VOLUME AND VALUE 2003-2013
TABLE 4: UK HOTEL SECTOR – NUMBER OF STAR RATED HOTELS 2014 BY RATING
CHART 5: TURNOVER IN THE UK HOTEL SECTOR: 2008 – 2018 (£BN)
TABLE 6: UK HOTEL SECTOR – PERFORMANCE INDICATORS – OCCUPANCY, REVENUE - (LONDON & PROVINCES): 2012-2013
TABLE 7: UK HOTEL MARKET – LARGEST OPERATING COMPANIES – 2014 (NO. OF HOTELS, ROOMS, MARKET SHARE)
CHART 8: GROWTH OF THE BUDGET HOTEL SECTOR 1995 – 2014 (NO. OF ROOMS)
TABLE 9: BUDGET HOTEL SECTOR: TOTAL SUPPLY 2005 – 2014 – NO. OF HOTELS, ROOMS, AVERAGE SIZE
TABLE 10: TOP 20 UK BUDGET HOTELS – LEADING BRAND PORTFOLIOS – MARKET SHARES BY NO. OF HOTELS AND ROOMS 2014
TABLE 11: TOP 20 UK MID-RANGE HOTEL GROUPS – LEADING BRAND PORTFOLIOS – MARKET SHARES BY NO OF HOTELS AND ROOMS 2014
TABLE 12: TOP 15 LUXURY HOTELS – LEADING BRAND PORTFOLIOS – MARKET SHARES BY NO. OF HOTELS AND ROOMS 2014
CHART 13: HEALTH & FITNESS MARKET – NEW CLUB OPENINGS 2008- 2013
TABLE 14: LEADING PRIVATE HEALTH & FITNESS CLUB BRANDS/ OPERATORS 2014 – BY NO. OF CLUBS
TABLE 15: LEADING UK BUDGET GYM OPERATORS 2014 – NO. OF CLUBS AND DEVELOPMENT PLANS
TABLE 16: LEADING CASINO OPERATORS 2014 – MARKET SHARES
TABLE 17: LEADING BINGO HALLS 2014 – MARKET SHARES BY NO. OF HALLS
TABLE 18: GROWTH OF THE UK CINEMA MARKET 2008-2013 (TURNOVER, SITES, NO OF SCREENS, ADMISSIONS)
TABLE 19: CINEMA SCREENS BY TYPE OF BUILDING: 2008-2013 (MULTIPLEX / TRADITIONAL)
TABLE 20: RISE OF DIGITAL CINEMA SCREENS: 2008- 2013
TABLE 21: LEADING CINEMA EXHIBITION OPERATORS 2014 – UK MARKET SHARES (BY NO. UK CINEMAS/SCREENS)
CHART 22: TURNOVER IN THE UK PUB SECTOR 2008-2013
TABLE 23: LEADING PUB OPERATORS BY PROPERTY PORTFOLIO 2011 AND 2014 – MARKET SHARES BY NO. OF PUBS
TABLE 24: TOP UK RESTAURANT OPERATORS AND THEIR BRANDS – 2014 (NO OF OUTLETS)
CHART 25: VALUE OF NON-DOMESTIC CONSTRUCTION OUTPUT 2009 – 2018 BY VALUE (£BN AT CURRENT PRICES)
CHART 26: NON-RESIDENTIAL CONSTRUCTION OUTPUT ANALYSIS BY SECTOR 2013 - % BY VALUE
CHART 27: NON-RESIDENTIAL CONSTRUCTION RMI OUTPUT ANALYSIS BY SECTOR 2013 - % BY VALUE
TABLE 28: ENTERTAINMENT AND LEISURE WORK (PUBLIC & PRIVATE SECTORS) – CONTRACTORS OUTPUT 2008 – 2018 (£M)
CHART 29: CAPITAL EXPENDITURE IN THE UK LEISURE MARKET – BY SECTOR 2013
CHART 30: GROWTH OF THE UK HOTEL SECTOR (INCLUDING THE BUDGET SECTOR): 2013– 2020 BY NO. ROOMS
TABLE 31: LUXURY & 4* HOTEL SECTOR: MAJOR NEW HOTELS/REFURBISHMENTS IN LONDON 2014-15
TABLE 32: BUDGET HOTEL CHAINS: FUTURE DEVELOPMENT PLANS: SUMMARY TABLE
TABLE 33: UK HOTELS – CHANGE IN NEW BUILD SIZE (BY SECTOR AND AVERAGE NO. ROOMS) 2006-2014
TABLE 34: UK HOTELS CONSTRUCTION COSTS BY TYPE OF DEVELOPMENT £M (2013 PRICES) – AVE SIZE, CONSTRUCTION COSTS, FURNITURE/FITTINGS ETC
TABLE 35: MAJOR HEALTH CLUB OPERATORS: FUTURE DEVELOPMENT PLANS: SUMMARY TABLE
TABLE 36: DEVELOPMENT AND CONSTRUCTION COSTS OF SPORT AND LEISURE FACILITIES – Q4 2013 (£/SQ. M.)
TABLE 37: CASINO & BINGO HALL OPERATORS: FUTURE DEVELOPMENT PLANS: SUMMARY TABLE
TABLE 38: PUB & RESTAURANT OPERATORS: FUTURE DEVELOPMENT PLANS: SUMMARY TABLE
TABLE 39: LEADING CONTRACTORS WORKING IN THE HOTEL & ENTERTAINMENT SECTOR – CAPABILITY, EXPERIENCE, KEY CLIENTS ETC
The report focuses on the capital expenditure and building programmes in several key sectors: Hotels, Health Clubs/Spas, Pubs/Bars/Restaurants, Betting/Gaming and Cinemas.
Key areas in the report:
- Assessment of leisure new build construction output and RMI, together with growth forecasts for the next few years.
- Review of the structures and size of all sectors within the leisure market, together with projections for growth.
- Detailed analysis of key leisure sector chains and operators, together with current and projected estate portfolios, spending programmes and forward development pipelines.
- Analysis of leisure sector construction capability and project experience of key contractors.
Areas of particular interest:
- The entertainment and leisure sector has performed relatively well in the current economic climate compared with other construction sectors, with construction output values reaching almost £6bn in 2013.
- Outlook for the hotel & leisure construction sector in 2014 indicates further moderate gains of 3-4% and the medium-term outlook is for further steady growth across the sector.
- Hotels and restaurants each account for over 20% of capital spending in the sector. Health clubs and pubs also account for significant shares.
- Review of key growth sectors - budget hotels, budget gyms, restaurants, food-led pubs, cinemas etc. benefiting from different market drivers.
- Overview of capital spending and development plans of key players in each sector.
Key areas covered in the report include:
THE HOTEL & ENTERTAINMENT SECTOR IN THE UK
- Market overview and size - £100+ billion market.
- Consumer spending and value of tourism to the UK economy.
- The impact of the recession on the Hotel & Entertainment Sector.
THE UK HOTEL SECTOR
- Market size, value and structure – key trends, forecasts up to 2018.
- Performance of the hotel sector in 2012-14 – room numbers, trends, forecasts to 2018.
- Major chains and sectors within the hotel industry – Budget, Mid-Range and Luxury – market shares, expansion plans etc.
- Detailed review of budget hotel sector – major players, shares, development plans.
HEALTH CLUBS AND SPAS
- Sector overview and size – recent trends, forecasts up to 2017/18.
- Leading health club operators and chains in the UK – key groups, market shares etc.
- Budget gym operators and chains – key players, shares, development plans.
- Hotel health & leisure clubs – key players, market shares.
BETTING, GAMING & CASINO SECTOR
- Sector overview and size.
- Casinos & Gaming Halls – key players, market shares, key areas of development and major programmes.
- Bingo Halls– key players, market shares, key areas of development and major programmes.
CINEMAS & MULTIPLEXES
- Sector overview and size.
- Development of the multiplex and digital markets – multiplex share, recent trends etc.
- Leading operators in the cinema exhibition market – key players, market shares, development plans.
PUBS, BARS AND RESTAURANTS
- Sector overview and size - recent trends, market restructuring etc.
- Key pub and restaurant chains and operators – major players, market shares.
- Industry trends in the pub and restaurant sectors.
HOTEL & ENTERTAINMENT CONSTRUCTION
- Construction market overview, value of construction output by sector in 2011-15.
- Entertainment sector refurbishment and fit-out market.
- Overview of building programmes and capital expenditure in the entertainment sector
- Building programmes and capital expenditure in the hotel, health clubs, betting/gaming, cinema, pub and restaurant sectors.
- Summary overview of development in each sector.
CONTRACTOR CAPABILITY IN THE HOTEL & ENTERTAINMENT SECTOR
- Sector overview
Project experience of key contractors in the leisure sector – key players, clients, partnership agreements etc.