bedford borough hotel futures update

BEDFORD

BOROUGH HOTEL FUTURES UPDATE 2014

Final Report

Prepared for:

Bedford Borough Council

January 2015

Bedford Borough Hotel Futures Update 2014

Hotel Solutions January 2015

CONTENTS

EXECUTIVE SUMMARY ................................................................... i

1. INTRODUCTION ...................................................................... 1 1.1 Background to the Study ........................................................................................... 1 1.2 Study Objectives ......................................................................................................... 1 1.3 Uses of the Study ......................................................................................................... 2 1.4 Scope of the Study ..................................................................................................... 2 1.5 Study Methodology .................................................................................................... 3 1.6 Structure of the Report ............................................................................................... 4

2. THE POLICY FRAMEWORK ...................................................... 5 2.1. National Planning Guidance .................................................................................... 5 2.2 Local Planning Policies – The Bedford Local Plan ................................................. 8 2.3 Local Planning Policies –Core Strategy and Rural Issues Plan ............................ 9 2.4 Local Planning Policies – Bedford Town Centre Area Action Plan .................. 13 2.5. Local Planning Policies – Allocations & Designations Local Plan..................... 14 2.6. Local Plan 2032 .......................................................................................................... 15 2.7. Community Infrastructure Levy (CIL) ..................................................................... 15 2.8. Bedford River Valley Park Plan ................................................................................ 16

3. NATIONAL HOTEL TRENDS ................................................... 18 3.1. National Hotel Performance Trends ...................................................................... 18 3.2. National Hotel Development Trends ..................................................................... 20

4. BEDFORD HOTEL SUPPLY ...................................................... 24 4.1. Current Supply ........................................................................................................... 24 4.2. Changes Since 2009 ................................................................................................. 27

5. CURRENT HOTEL PERFORMANCE & MARKETS ..................... 29 5.1. Occupancy, Achieved Room Rates and Revpar .............................................. 29 5.2 Patterns of Demand ................................................................................................. 31 5.3 Midweek Markets ...................................................................................................... 34 5.4. Weekend Markets ..................................................................................................... 36 5.5. Market Trends ............................................................................................................. 38 5.6 Denied Business ......................................................................................................... 39 5.7. Prospects for 2015 ..................................................................................................... 41

6. FUTURE GROWTH PROSPECTS .............................................. 42 6.1 Strategic Context ...................................................................................................... 42 6.2 Key Projects in Bedford Borough Driving Demand ............................................. 43 6.3 Growth Prospects by Market .................................................................................. 51

7. FUTURE POTENTIAL FOR HOTEL DEVELOPMENT ................... 53 7.1 Hotel Demand Projections for Bedford Town ...................................................... 53 7.2 Hotel Developer & Operator Interest in Bedford ................................................ 55 7.3 Hotel Site Availability ................................................................................................ 57

8. CONCLUSIONS & RECOMMENDATIONS ............................. 59 8.1. Identified Hotel Development Potential ............................................................... 59 8.2. Implications for Planning Policy .............................................................................. 62 8.3. Other Requirements for Borough Council Intervention ..................................... 68



APPENDICES

1 NPPG Tourism Planning Guidance (March 2014) 2 Bedford Borough Hotels Interviewed

3 Bedford Town Projected Future Hotel Development Requirements - 2019-2032 4 Call for Sites – Site Assessments Including Visitor Accommodation

Lynn Thomason Andrew Keeling

Hotel Solutions Hotel Solutions

Deleanor House Mill Field House

High Street Mill Fields

Coleby Bassingham

Lincoln Lincoln

LN5 0AG LN5 9NP

t. 01522 811255 t. 01522 789702

e. [email protected] e. [email protected]


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EXECUTIVE SUMMARY

___________________________________________________________________________

The Story

� Bedford has 20 hotels with just over 1,000 letting bedrooms, mostly located in and

around Bedford (13 hotels, 683 rooms - a mix of 4 star, boutique, 3 star, branded

budget and smaller non-inspected hotels. There are only two hotels in the town

centre. Beyond Bedford, there are clusters of hotels at Wyboston and in Rural North

Bedford. A Premier Inn Bedford South (60 rooms) opened in 2013. The De Parys Hotel

has reduced in size to reopen as the d'Parys boutique hotel following significant

investment by its new owners. Some other hotels have undergone refurbishment

programmes and others have investment scheduled for 2015/16. Two hotels have

closed since 2009, with a loss of 42 rooms. A 100 bedroom Premier Inn is proposed as

part of the Riverside North development, which will deliver Bedford’s first town centre

budget hotel.

� The performance of the Borough's 3 and 4 star hotels to 2013 has been significantly

below national provincial averages in terms of achieved room rates ( £57 compared

to £71), and occupancy (67% compared to 72%). 2014 saw a substantial

improvement in occupancy (74%) and achieved room rate (£63) due to the

economic recovery and filming at Cardington Studios, which significantly boosted

hotel performance in and around Bedford, particularly at the 4 star/ boutique level,

with 4 star/boutique hotel occupancies rising to over 80% and achieved room rates

climbing to an average of just over £74. Budget hotel occupancies and achieved

room rates in and around Bedford Town were similarly below typical budget hotel

performance to 2013 (73% and £47), but increased to 82% and £53 in 2014 due to

Cardington Studios business and contractor demand from the construction of the

Woburn Forest Center Parcs holiday village. Midweek corporate and contractor

demand is strong, with Tuesdays and Wednesdays the strongest nights, when most of

the Borough's hotels consistently fill and turn business away. Saturday occupancies

are also strong due to demand from people attending weddings and family parties or

events and festivals in the area. Friday and Sunday occupancies are generally very

low, although Friday occupancies are stronger for hotels in Rural North Bedford and

Wyboston and a few hotels in Bedford, due to demand from weddings. Weekend

demand is very price driven for some hotels. Other than hotels that offer spa facilities

or golf, the Borough's hotels attract very little leisure break business.


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� Bedford is to see substantial levels of growth through to 2032 – up to 19,000 new

homes, 18,000 new jobs and a population increase of up to 33,000. The Growth Area

(Bedford town centre/Kempston/Marston Vale) will continue to be a focus of growth,

given development underway, and allocated. Sectors being targeted in the short to

medium terms are advanced manufacturing, biotechnology, low carbon, creative

and finance/business services - will present good prospects for growth in hotel

demand, boosted by strengths in niche sectors such as film production, band

rehearsals and corporate activities. Development will be facilitated by significant

improvements to transport and other infrastructure.

� The research identified some interest from hotel developers and operators in being

represented in Bedford, primarily at budget and mid-scale level. In terms of location,

there was interest in locating hotels both in the town centre and on/close to business

parks around the town, particularly along the A421.

� In terms of the planning framework, the adopted Core Strategy & Rural Issues Plan

does not have a hotel-specific policy. It is generally supportive of tourism and draws

on national policies regarding the location of development. The Bedford Town

Centre Area Action Plan has a more specific tourism policy relating to the town

centre, which refers to encouraging hotel development, and identifies a number of

key regeneration sites for mixed use development, which hotels could be a part of.

No town centre sites are allocated for stand-alone hotel use in the Allocations &

Designations Local Plan, but outside the town centre a hotel use is supported on four

allocated development sites - Apex Business Park, Medbury Farm, land north of the

A6/A428 link road, and Bedford River Valley Park.


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The Potential for Hotel Development in Bedford Borough

� The findings of our various modules of research combine to show the following

potential for hotel development in Bedford Borough through to 2032:

o The expansion, development and upgrading of existing hotels;

o The development of up to 2 new 4/5 star boutique hotels in Bedford town

centre through the repositioning of existing suitable hotels and/or the

conversion of appropriate buildings;

o Up to 2 new budget hotels in Bedford town centre, including the proposed

Premier Inn at Riverside North;

o Up to 2 new upper-tier budget or 3/4 star hotels on the new business parks

around Bedford;

o A small budget hotel alongside a new-build pub restaurant on the northern

edge of Bedford;

o Additional serviced apartments in Bedford town centre , most likely delivered

through the sub-letting of residential apartments than the development of

purpose-built serviced apartment complexes, although these should not be

ruled out;

o Country house hotels in Rural North Bedford, given suitable properties for

conversion;

o The opening of hotels on golf courses;

o The development possibly of a major new golf resort, given a suitable site that

would be acceptable in planning terms;

o An element of hotel accommodation to be developed as part of existing or

new watersports centres, wedding venues or corporate activity venues;

o A new hotel in the Wyboston area, most likely of a budget standard.


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Implications for Planning Policy

� The study findings have a number of implications for the development of planning

policy and process in relation to hotel development:

o Reinforcing the locational strategy for hotel development to reflect drivers of

demand requiring new hotels in both the town centre and out of centre

business parks along the A421 corridor;

o Considering a more flexible and positive approach to supporting hotel

development on other business parks in the A421 corridor and other sites that

may be as attractive, and possibly more attractive, than the allocated

development sites where a hotel use is supported in the Allocations and

Designations Local Plan;

o Developing policies that will permit the expansion of existing hotels in the rural

area, the development of small country house hotels and hotel

accommodation linked to golf courses, watersports centres, wedding venues

and corporate activity centres;

o At an overall level the retention of hotel uses is not an identified issue other

than in relation to distinctive hotel properties that would be hard to replace;

o Supporting the development of existing hotels to up-grade, re-position,

expand and add facilities to attract new markets;

o Delivering a streamlined planning process without onerous conditions that

could impact on the viability of hotel proposals;

o Reflecting the identified market potential in development management

policies and text to steer interested hotel developers and operators in terms of

scale, standard and location.


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Other Requirements for Intervention and Support

� Other interventions to further support the development of the hotel sector and its long

term viability and sustainability include:

o Hotel investment marketing to pro-actively target hotel brands with good

market fit with the identified potential for hotel development in the Borough,

focusing initially on the companies that expressed interest in Bedford through

our developer testing survey;

o Building the leisure market through an events-led strategy, particularly to

generate additional demand at weekends and outside the main summer

months;

o Encouraging major attraction development with the ability to attract

overnight hotel stays;

o Maximising the potential of the Borough’s corporate activities cluster through

collective marketing to target markets such as incentive travel, team-building

events and corporate activities;

o Monitoring hotel development and performance to ensure a sound

commercial understanding of the sector, its potential and needs going

forward.


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1. INTRODUCTION

1.1 Background to the Study

1.1.1 The Bedford Borough Hotel Futures Update has been commissioned by Bedford

Borough Council to provide an up-to-date assessment of the future potential for hotel

development in Bedford Borough to inform the content of the emerging Bedford

Borough Local Plan to 2032 in relation to policies on hotel development, The study

updates the Bedford Hotel & Visitor Accommodation Futures Study that Hotel Solutions

undertook for the Borough Council in 2009.

1.2 Study Objectives

1.2.1 The objectives of the study were to:

• Assess the potential for new hotel development of all types in Bedford Borough

based on a robust analysis of supply, demand, forecast growth and developer

interest.

• Evaluate the potential for existing hotels to expand and identify any barriers to

such expansion.

• Identify the potential employment and skills implications and likely investment

generated from new hotel development and the expansion of existing hotel

operations.

• Recommend a strategy for hotel development in Bedford Borough in order to

capitalise on the identified opportunities.

• Provide an objective assessment of potential hotel sites submitted through the

Council's 'call for sites'.


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1.3 Uses of the Study

1.3.1 The study findings will be used to:

• Inform the preparation of the new Bedford Borough Local Plan in terms of

policy formulation and site allocation for hotel development.

• Guide decision-making on planning applications for new hotel development

projects.

• Inform decision-making on planning applications for the expansion of existing

hotels.

• Identify other possible interventions that the Borough Council may be able to

make to support the development of the Borough's hotel sector e.g. in terms of

proactive work to accelerate inward investment into the sector and action to

help grow the Borough's hotel market.

1.4 Scope of the Study

1.4.1. The study has sought to assess the future potential for the development of all types

and standards of hotel in all parts of Bedford Borough.

1.4.2. In terms of types of hotel the study has looked at the potential for:

• Full service 3 and 4 star hotels;

• Boutique hotels;

• Budget/limited service hotels;

• Serviced apartments/ aparthotels;

• Country house hotels;

• Golf hotels.

1.4.3. Geographically the study findings have been presented for the following parts of the

Borough:

• Bedford Town (and immediate environs)

• Rural North Bedford

• Wyboston (and St Neots)


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1.5 Study Methodology

1.5.1. The study has involved the following modules of research and consultation:

• A stakeholder consultation with the relevant officers of Bedford Borough

Council (Planning Policy, Development Control, Economic Development and

Estates).

• A review of relevant current policy and strategy documents and employment

and population forecasts to establish the policy framework for hotel

development in the Borough and identify likely drivers of future growth in hotel

demand.

• A review of national trends in hotel performance and development of

relevance to the Borough.

• An audit of the current and potential future hotel supply in the Borough,

identifying any changes since 2009 in terms of new hotel; the expansion,

development or upgrading of existing hotels; any hotel closures; and firm

proposals for new hotels. The audit has been based on information provided

by the Council supplemented by our own Internet searches.

• A survey of hotel managers and owners in the Borough to gather data and

information on room occupancy levels and trends, achieved room rates,

market mix, levels of denials, market trends, and future development plans.

Interviews were conducted primarily through face-to-face interviews

supplemented with telephone interviews as required. We also obtained some

hotel performance data from hotel company head offices for some of the

Borough's hotels. The hotels interviewed are listed at Appendix 2.

• Telephone interviews with a number of businesses in Rural North Bedford to

assess the extent to which they generate demand for hotel accommodation

in this part of the Borough. This included PalmerSport, Bodyflight, Millennium

Studios and Tofte Manor. A telephone interview also with Millbrook Venues to

assess the extent to which events, conferences, product launches and

exhibitions at its venues generate demand for hotel stays in Bedford.


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• The preparation of hotel demand forecasts for Bedford Town to provide a

quantitative estimate of the level of new hotel development that future

market growth might support in and around the town through until 2032.

• A survey of national, regional and local hotel developers/operators to test

hotel developer interest in Bedford Borough, establish their site and location

requirements and identify any obstacles they face relative to investing here.

• A review of potential hotel sites that have been put forward in the Borough to

assess their fit with hotel operator requirements.

• An assessment of the potential job creation benefits of the new hotels that

could potentially be developed in Bedford Borough.

1.6 Structure of the Report

1.6.1. The report comprises an initial chapter setting out the current and emerging national,

regional, sub-regional and local policy context for hotel development in Bedford

Borough, followed by chapters setting out the key findings and conclusions of the

study regarding:

• National hotel performance and development trends;

• Current hotel supply, recent changes and planned hotel development;

• Current hotel performance and markets:

• Future market prospects;

• The future potential for hotel development in the Borough.

1.6.2. The final chapter of the report provides a summary of the planning policy

recommendations from the study and identifies other requirements for Borough

Council intervention and support to accelerate hotel development and strengthen

the hotel market in the Borough.


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2. THE POLICY FRAMEWORK

______________________________________________________________________________________

2.1. National Planning Guidance

2.1.1 With the publication of the National Planning Policy Framework in March 2012,

planning policy has been streamlined. National planning practice guidance has

subsequently been completely refreshed and updated to support the NPPF and

in March 2014 was launched via a new website.

2.1.2 The NPPF says relatively little about tourism. There are two principal references:

o Tourism development (including hotels) is identified as a main town centre

use (para. 23);

� The NPPF focuses on a town centre first approach, with sequential

testing to be applied should these uses wish to locate elsewhere

and not be in accordance with an up-to-date Local Plan. This

means proving that no alternative suitable sites in or closer to the

town centre are available or viable;

� However, it also indicates that the sequential approach need not

apply to applications for small scale rural development (para 25);

o Tourism development is also dealt with in the NPPF’s rural policy (para.28)

which supports tourism in the countryside as part of a prosperous rural

economy. Sustainable rural tourism development that can benefit rural

businesses, visitors and communities and which respects the character of

the countryside should be supported. This includes the provision and

expansion of tourist and visitor facilities in appropriate locations.


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2.1.3 In terms of other policies in the NPPF, key threads of relevance to developing the

hotel and visitor accommodation sector and some of the issues identified in this

study include:

o Retention of the presumption in favour of sustainable development;

o A continued significant focus on supporting economic growth, also reflecting

local circumstances;

o Encouragement to plan positively, meeting objectively assessed needs with

flexibility to adapt to change;

o A streamlined and speedy approach to decision-making on schemes that

accord with the development plan;

o Retention of requirements relating to the setting of local car parking

standards, reflecting local levels of ownership, and encouragement of

sustainable modes of transport;

o Re-affirmation of the commitment to the Green Belt, with review only in

exceptional circumstances;

o Policies should seek to address potential barriers to investment;

o Pro-active engagement with applicants is a key strand, with positive planning

and pre-application discussions encouraged;

o Joint working is expected between local authorities on cross-boundary issues,

in relation to which there is a duty to co-operate;

o Weight will also be given to relevant policies within emerging Local Plans

dependent on stage of preparation and conformity with the NPPF.

2.1.4 The government consulted in 2013 on proposals to permit hotels to convert to

other uses under permitted development rights. The proposal to allow hotels to

convert to state funded schools and childcare nurseries was granted, but the

proposal to allow hotels to convert from C1 to C3 residential was not.


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2.1.5 Prior to March 2014, national planning guidance on the development of hotels

and other forms of visitor accommodation came in the form of the ‘Good

Practice Guide on Planning for Tourism’ (2006), which contained a specific

appendix on tourist accommodation, dealing principally with the location of

accommodation. There was also previously a specific section on hotel

development in the ‘Practice Guidance on Need, Impact and the Sequential

Approach’ (2009). With the advent of the NPPF, both of these have been

cancelled. There is a lack of clarity around how much of this is now reflected in

current policy and guidance. Initial advice indicates that:

o The Planning Practice Guidance published by DCLG alongside the NPPF

only makes reference to tourism under the section entitled ‘Ensuring

Vitality of Town Centres’ Paragraph 007 – ‘What should local authorities

consider when planning for tourism?’. This refers to engaging with the

tourist industry, considering their locational and operational needs,

analysiing the opportunities for tourism to support local services and the

environment, and paying regard to non-planning guidance.

o Specific tourism planning guidance appears to have been reduced to a

six point framework that can be found on the VisitEngland website1 (see

Appendix 1). This addresses the following issues:

� How should tourism developers maximise the economic benefits of

tourism for their areas;

� How should tourism uses be accommodated in urban areas?

� How should tourism be accommodated in rural areas?

� What are the key locational considerations in choosing the best

site for tourism development?

� How can tourist accommodation be maintained as a tourism use?

� What about applications for permanent staff accommodation?

1 http://www.visitengland.org/england-tourism-industry/gov_tourism_policy/tourism-planning.aspx"


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2.2 Local Planning Policies – The Bedford Local Plan

2.2.1 The Bedford Borough Local Plan was adopted in October 2002. Policies have

been saved whilst the development plan is in preparation, but as each

Development Plan Document (DPD) is adopted, more policies are deleted. As

the Core Strategy and the Bedford Town Centre Area Action Plan (AAP) were

both adopted in 2008, and the Allocations and Designations Local Plan in 2013,

they have replaced the relevant 2002 Local Plan policies; others remain saved

whilst the Local Plan 2032 and SPDs are produced.

2.2.2 Saved tourism policies are contained in the Employment and Tourism chapter.

Policy E23 is a generally permissive tourism development policy, encouraging

appropriate development to expand the tourism industry and its resultant

benefits. Policy E25 is a specific tourist accommodation policy, which

encourages new accommodation development especially for business tourism

and short break markets, in the urban area. The supporting text identifies a

shortage of budget hotel accommodation, camping and caravan facilities, and

4 and 5 star hotels.

2.2.3 In rural areas, the plan recognises the contribution tourism can make to rural

economic activity, and identifies the scope for holiday accommodation in the

rural area, directing new build to villages, but also recognising the potential to

convert rural buildings for holiday accommodation (E18). The potential for touring

caravan sites in the rural area is also covered in policy E26, subject to sensitive

siting to minimise visual impact, ease of access, and the scale of development

being appropriate to the location. Policy E27 covers static caravan sites and

leisure chalets, which are treated in the same way as residential property in the

countryside, which is restrained. Policy H26 (relevant in terms of staff

accommodation) states that permission will not be given for housing in the open

countryside other than for agricultural dwellings (H27), replacement dwellings

(H28) and extensions (H29).

2.2.4 There are significant tranches of land in the floodplain of the River Great Ouse

and other significant watercourses in the Borough that are at risk of flooding

representing a key constraint on development in these areas.


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2.3 Local Planning Policies –Core Strategy and Rural Issues

Plan

2.3.1 Bedford’s Core Strategy & Rural Issues DPD was adopted in April 2008. It sets out

the long term spatial vision for the Borough to 2021, the spatial objectives and the

spatial policies needed to deliver them. The spatial vision:

� Focuses growth on the main urban areas and Marston Vale to deliver a

successful economy and expanding communities, supported by improved

infrastructure,

� Identifies the revitalisation of Bedford town centre as a catalyst for growth

capable of delivering a step change in Bedford’s regional role;

� Seeks to secure a viable, distinctive rural area.

The locations for strategic development, key service centres and infrastructure

projects are identified on the map and key diagram overleaf (up-dated 2014)

The strategy identifies a requirement for an additional 16,000 jobs to be created

in the Borough between 2001 and 2021.


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11



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2.3.2 There is no core policy specifically relating to tourism or the development of visitor

accommodation. Tourism does feature in the Plan objectives (no.14) in relation

to protecting and enhancing the Borough’s built and cultural resources to foster

the development of the Borough as a destination for heritage and cultural

tourism. Core policy 19 (CP19) identifies Bedford town centre as the preferred

location for new retail and other forms of development attracting large numbers

of people, including leisure, entertainment, offices, arts, culture and tourism – the

latter definition given by Government including theatres, museums, galleries,

concert halls, hotels and conference facilities. The Town Centre Area Action Plan

and Development Control DPD deals with this in more detail.

2.3.3 The spatial strategy in the rural policy area (CP14) looks to direct development to

key service centres first, based on a proven need for the development. Outside

these areas the contribution of the development to business and community

needs and maintaining the vitality of these centres will be key considerations.

2.3.4 The core policy relating to green infrastructure (CP22) touches on tourism

potential, supporting the Bedford to Milton Keynes canal in terms of its

contribution to tourism and to the vitality of the town centre. The vision for this

waterway is for a linear water park stimulating economic growth through creating

leisure, business and employment opportunities.

2.3.5 The Core Strategy and Rural Issues Plan policies will be reviewed to see whether

any need to be deleted or changed as part of the 2032 Local Plan process.


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2.4 Local Planning Policies – Bedford Town Centre Area Action

Plan

2.4.1 The Bedford Town Centre Area Action Plan was adopted in October 2008. The

AAP seeks to set the framework to create a vibrant, dynamic and successful town

centre that will be a destination of choice for customers and visitors, providing a

distinctive offer that will complement its neighbour Milton Keynes. A buzzing

Riverside, an office campus with international companies around the new station,

quality public realm, an expanded retail offer, signature buildings and a cultural

quarter all feature in the 2021 vision.

2.4.2 Key sites identified for redevelopment include:

o Town Centre West – a major mixed use development around the bus

station to include new shopping, commercial, leisure uses and housing;

o Castle Lane – new housing, commercial, shopping, heritage and cultural

elements to create a new cultural quarter;

o Riverside Square – mixed use housing, commercial and shopping with a

public square and bridge across the river;

o Shire Hall and the Bank Building – creation of a regional justice centre;

o Bedford Station – new office quarter, housing and transport interchange;

o St Mary’s Quarter – redevelopment and in-fill around County Hall and

Bedford College;

o Kingsway Quarter – mixed use including a range of business, residential,

office and public administration;

o Lime Street – mixed use shops offices and housing

o Progress Ford – new housing.

2.4.3 The strategic policies include a policy to expand the town’s tourism potential

including the provision of additional hotel accommodation.

2.4.4 The principal tourism policy is TC28, which seeks to promote tourism in Bedford by

acting to improve the tourist offer by enhancing the range and quality of visitor

attractions, and encouraging the provision of additional quality visitor facilities,

including hotel accommodation and eating facilities.


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2.4.5 Much has changed since the preparation of the Town Centre AAP. A number of

the proposals for major regeneration schemes have fallen by the wayside during

the recession. The Town Centre AAP policies will be reviewed as part of the 2032

Local Plan process. To kick start this process a Town Centre Discussion Paper has

been prepared. Key issues identified include access, congestion, the amount

and type of retail, the range of uses, competition and the environment.

2.5. Local Planning Policies – Allocations & Designations Local

Plan 2.5.1 The Allocations and Designations Local Plan, which was adopted in July 2013,

identifies and allocates sites to meet the Borough’s future development needs to

2021, and designates areas of land where specific policies will apply. In allocating

and designating these sites, it echoes the spatial strategy set down in the Core

Strategy & Rural Issues Plan, which focuses most development in the Bedford

Growth Area that comprises Bedford, Kempston and the northern Marston Vale.

2.5.2 The Plan includes a section on Hotels, which uses as its evidence base the findings

of the 2009 Bedford Borough Hotel & Visitor Accommodation Futures study in

terms of the potential identified and the sites assessed. It re-states the market

potential for 3 or 4 new budget/upper tier budget hotels, a large branded 3 star

hotel linked to a business park/office development, a small boutique hotel and

the extension and up-grading of existing 3 and 4 star hotels. The Plan doesn’t

make any allocations for hotels in Bedford town centre as hotels are an identified

town centre use and there are several sites and proposals for large scale mixed

use development that could include hotel. However, beyond the town centre

hotels feature as a potential use on a number of allocated development sites:

• Hotel use is supported in the allocation for employment development

at Medbury Farm, Elstow (AD11) and the Apex site at Cardington

Cross (AD14);

• A hotel is identified as a potential use for the land north of the

A6/A428 link road, which replaces the hotel site identified in the Land

North of Bromham Road Development Brief (2003).

• A hotel and conference centre on land north of the A603 features as

part of the Bedford River Valley Park enabling development allocation

(AD23).


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2.5.3 The Plan recognises that these four hotel sites may not quite meet the identified

need and that additional schemes could come forward for alternative sites.

These will be considered with regard to the sequential test, the impact on the

viability of key town centre schemes, and any qualitative justification for the

scheme.

2.6. Local Plan 2032

2.6.1 Work has now started on a new Local Plan to cover the period to 2032 that will set

out how much growth there will be in the Borough and where this growth should

take place. It will also contain development management policies that will guide

decision-making on planning applications. An Issues & Options consultation was

undertaken in early 2014 and a ‘call for sites’ was carried out at the same time.

2.6.2 The Issues & Options consultation sets out five options for locating future growth:

o Concentrating development in the ‘growth area’ of Bedford, Kempston

and Marston Vale;

o Expanding the 'growth area' but still concentrating development here;

o Expanding the 'growth area' but allowing some rural growth;

o Directing growth to the existing 'growth area' plus a limited number of new

rural growth points;

o Spreading development around existing settlements and abandoning the

'growth area'.

2.6.3 The encouragement of tourist facilities including tourist accommodation is

identified as a subject area that the Local Plan development management

policies should address.

2.7. Community Infrastructure Levy (CIL)

2.7.1 CIL charges were introduced in Bedford Borough in April 2014. However, they

apply only to new residential development, supermarkets, superstores and retail

warehouses. A scaled back system of Section 106 agreements covering site

related issues is being operated alongside CIL charges.


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2.8. Bedford River Valley Park Plan

2.8.1 The Bedford River Valley Park Plan (March 2008) sets out a framework for the

development of over 2000 acres of land east of Bedford to create a regional park

in the floodplain of the Great Ouse. The park forms part of the Forest of Marston

Vale, an area of Bedfordshire identified by Government as a national priority for

environmental regeneration. Trees and woodland will be used to transform an

area of 61 sq miles scarred by clay extraction, brick making and landfill, located

between Bedford and Milton Keynes.

2.8.2 There is some current recreational use here, with Priory Country Park to the west,

which offers angling, cycle hire, wildlife observation, a visitor/education centre, a

marina with 200 moorings, a sailing lake, a hotel and restaurant. To the east is the

Danish Camp Visitor Centre, which offers a restaurant, function facilities, live

music, boat tours of the moat and wetlands and cycle hire. The National Trust’s

Dovecote is also located at Willington, and National Cycle Route 51 runs through

the River Valley Park along the route of the dismantled railway to Bedford and

beyond.

2.8.3 The future vision recommends a 240ha ‘floodplain forest’, made up of woodland,

wetlands and grassland, with networks of access routes for quiet recreation,

including a canoe trail alongside routes for walkers, cyclists and riders. Areas

have also been identified for more noisy activities, including the possibility of

establishing an inland beach and swimming lake, and to explore the provision of

camping facilities. A 2.3km rowing lake is identified as a major potential asset of

Olympic standard, with an associated activity hub of support facilities.

2.8.4 The delivery of the River Valley Park has now been incorporated into the

Allocations & Designations Local Plan with sites identified for enabling

development for the rowing lake.


Hotel Solutions January 2015 17


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3. NATIONAL HOTEL TRENDS

______________________________________________________________________________________

3.1. National Hotel Performance Trends

3.1.1 UK provincial hotel occupancies, achieved room rates1 and revpar2 figures all

dropped sharply in 2009 following the Credit Crunch at the end of 2008 and

ensuing economic recession. All three performance indicators remained flat in

2010 and 2011. There was a slight improvement in achieved room rates in 2012

followed by an improvement in occupancy, achieved room rate and revpar in

2013, with occupancy ahead of the 2008 figure for the first time but achieved

room rate and revpar still a little below the 2008 results. The improvement in

provincial hotel performance has continued so far in 2014, with the rolling annual

averages for all performance indicators up so far as at September 2014.

Table 1

UK PROVINCIAL HOTEL PERFORMANCE 2008-2014

Year Average Annual

Room Occupancy

%

Average Annual

Achieved Room Rate

£

Average Annual

Revpar

£

3/4 Star

Chain

Hotels1

All

Hotels2

3/4 Star

Chain

Hotels1

All

Hotels2

3/4 Star

Chain

Hotels1

All

Hotels2

2008 70.5 68.6 74.45 64.16 52.52 44.02

2009 68.2 65.8 68.65 59.73 46.83 39.32

2010 69.5 69.5 68.20 58.88 47.40 40.90

2011 69.6 70.9 68.40 58.64 47.61 41.56

2012 69.6 69.8 69.97 59.22 48.72 41.32

2013 72.0 72.6 71.46 59.94 51.48 43.53

20143 73.7 n/a 74.90 n/a 55.20 n/a

Notes: 1. Source: Hotstats UK Chain Hotels Market Review

2. Source: STR Global 3. Rolling annual average as at September 2014

1. The amount of rooms revenue (excluding food and beverage income) that hotels achieve

per occupied room net of VAT, breakfast (if included) and discounts and commission charges, calculated as total rooms revenue divided by number of rooms let

2. The amount of rooms revenue (excluding food and beverage income) that hotels achieve per available room net of VAT, breakfast (if included) and discounts and commission charges, calculated as total rooms revenue divided by number of rooms available

3. Estimate


______________________________________________________________________________________


3.1.2. The drop in provincial hotel occupancies, achieved room rates and revpar during

a period of rising wage, energy and other operating costs has resulted in a steady

decline in provincial hotel profitability since 2008. Gross operating profit per

available room (Gopar) has dropped slightly every year from 2009 to 2012. There

was a slight improvement in 2013 and further recovery so far in 2014, but hotel

profitability still remains some way below the 2008 level.

Table 2

UK PROVINCIAL CHAIN HOTEL PROFITABILITY

Source: Hotstats UK Chain Hotel Market Review Notes: 1. Gross operating profit per available room 2. Rolling average annual average as at September 2014

Year Average Annual

Gopar1

£

2008 32.49

2009 28.51

2010 27.73

2011 27.09

2012 26.56

2013 27.00

20142 29.41


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3.2. National Hotel Development Trends

3.2.1. National hotel development trends of relevance to Bedford Borough are as

follows:

• The ongoing development of Premier Inn and Travelodge budget hotels with

new hotels opening in 2013 and 2014 in a whole range of different types of

location including towns such as Trowbridge in Wiltshire, Bedford, Luton,

Bicester in Oxfordshire, Telford, and Hitchin in Hertfordshire. As the market

leaders in the UK budget hotel sector Premier Inn and Travelodge have

continued to open hotels apace across the UK, although Travelodge has cut

back on its development programme as a result of its financial restructuring,

prioritisation of investment in existing hotels and focus on London for new

hotel development. It opened 14 new hotels across the UK in 2013, with a

total of almost 1,600 bedrooms, and is planning to open a further 15 new

hotels by the end of 2014. Premier Inn opened 4,000 new hotel bedrooms in

the UK in 2013 and is aiming to open a further 4,500 in 2014. The company's

target is to open 170 new hotels over the next 4 years, taking it to a total of

830 hotels and 75,000 bedrooms by 2018. Both Travelodge and Premier Inn

are now focusing on town and city centre or edge of town hotel

development. They are no longer developing roadside hotels in the way that

they were in the early 1990s.

• In terms of other established budget hotel brands, the French hotel company

Accor has relaunched its budget hotel offer under three brands – Ibis, Ibis

Budget (replacing Etap) and Ibis Styles as a budget boutique brand for

franchised independent hotels. At the upper-tier budget level, the Hampton

by Hilton, Ramada Encore and Holiday Inn Express brands have continued to

become more established, with new hotels across the UK in locations such as

Sheffield, York, Wakefield, Birmingham, Luton and Newcastle.


______________________________________________________________________________________


• A new entrant to the UK budget hotel market is the Malaysian budget hotel

operator Tune Hotels. It has rapidly established itself in London and is now

targeting other UK cities, with plans announced for hotels in Liverpool and

Newcastle. A recent trend has also been the emergence of budget

boutique hotel brands including Z Hotels, Sleeperz, QBic, Bloc, Yotel and

Citizen M. These are limited service hotels that feature contemporary interior

design and a high-tech fit out. Whitbread is also about to launch its new Hub

by Premier Inn brand to compete in this market. The German budget

boutique hotel operator Motel One is also looking at entering the UK market

in London, Newcastle and Liverpool, and Marriott has announced plans to

introduce its new Moxy budget boutique hotel brand into the UK. These

newer budget hotel companies will focus initially on London, major

metropolitan cities and airport locations before looking at secondary and

tertiary towns and cities once they have a stronger market presence and

hotel network in the UK. They are unlikely to consider Bedford at this stage

therefore.

• Although initially focused on historic towns and cities and major metropolitan

cities more recent years have seen the development of boutique and

townhouse hotels in other towns such as Luton, Peterborough, Bedford,

Colchester, Ipswich, Abingdon, Farnborough and Darlington, primarily by

independent developers, most commonly through the upgrading and

repositioning of existing hotels

• 4 star hotel development has been focused on London and other major cities

with 4 star brands Doubletree by Hilton, Hilton, Crowne Plaza, Copthorne,

Hotel La Tour, Sandman, Innside and Pullman opening or under construction

in cities such as Manchester, Birmingham, Liverpool, Newcastle, Leeds, Milton

Keynes, Southampton and Chester.


______________________________________________________________________________________


• At the 3 star level De Vere Hotels has opened new Village Urban Resort hotels

on business parks at Leeds and Farnborough and is currently progressing plans

for new Village Urban Resort hotels on business parks around Glasgow,

Edinburgh and Portsmouth. Hilton opened a 3 star Hilton Garden Inn at the

Butterfield Business Park to the north of Luton in 2008 but has not since

progressed any further Hilton Garden Inn hotels in the UK. New Holiday Inn

hotels have opened in 2013 and 2014 in Huntingdon, Watford and Glasgow.

IHG has also entered into franchise agreements for the conversion of hotels at

Darlington and Cannock to the Holiday Inn brand. Marriott is currently looking

at rolling out its redefined Courtyard by Marriott midmarket brand.

• In rural locations, at the top end of the market there has been activity in

terms of the development of luxury country house hotels. This has included

the opening of Lime Wood in the New Forest and the soon to open Heckfield

Place near Hook in Hampshire; the £30 million development of the Raithwaite

Estate in North Yorkshire as a luxury hotel and spa; the opening of the

Ellenborough Park Hotel & Spa near Cheltenham in 2011; and the

redevelopment in 2012 of Wood Norton Hall near Evesham as a country

house hotel. Plans have also been unveiled for the development of new

luxury country house hotels in Hampshire (the conversion by the Nicolas

James Group of the former Treloar School near Alton), Surrey (the conversion

of Cherkley Court near Leatherhead), West Yorkshire (involving the

conversion of Bretton Hall near Wakefield)and Kent (on the Salomons Estate

in Tunbridge Wells).

• A number of country house hotel companies have expanded in the last 3

years. Brownsword Hotels has established the Gidleigh Collection of luxury

country house hotels following its acquisition of 4 hotels previously owned by

the now defunct Von Essen Hotels company. Hand Picked Hotels has

acquired three new country house hotel properties in the last 16 months near

Bath and in Guernsey and Northamptonshire. Laura Ashley Hotels has

opened two country house hotels in Elstree in Hertfordshire in 2013 and

Windermere in the Lake District in 2014. The Northamptonshire-based

Hazleton Group of Companies opened the Barton Hall Hotel near Kettering in

Northamptonshire in 2014 to add to the Rushton Hall Hotel that it opened in

2006.


______________________________________________________________________________________


• Recent years have also seen the development of a number of smaller

boutique country house hotels through the conversion of country mansions,

upgrading and repositioning of existing hotels, or development of redundant

outbuildings at country house properties. Examples include The Cranleigh in

the Lake District, The Coach House Hotel at Middleton Lodge, near

Richmond, North Yorkshire, The Rectory Hotel at Malmesbury in Wiltshire, The

French Partridge at Horton, near Northampton, and Barnsley House, near

Cirencester.

• Golf resorts have opened in some counties e.g. Mere Golf Resort in Knutsford

in Cheshire and Rockcliffe Hall near Darlington. A number of proposals have

come forward for new golf resorts in various locations across the UK, including

Kent (at the London Golf Club), Hertfordshire (at the Hertfordshire Golf &

Country Club), Surrey (a proposal for a 100-bedroom Hilton hotel as part of

the new regional headquarters of the PGA at Wildwood Golf & Country Club

in Cranleigh), North Yorkshire (the Flaxby Country Resort on the existing Flaxby

Golf Course near Knaresborough) and the Wirral (at Hoylake), together with

a number of proposals in Scotland.

• On a smaller scale there has also been some activity in terms of the

development of hotels on golf courses e.g. the Magnolia Park Golf and

Country Club in Buckinghamshire has opened a 30-bedroom Best Western

Plus hotel in 2014, and the Sandford Springs Golf Club near Basingstoke

opened a 40 bedroom hotel in 2014.

• There has been some activity in terms of the development of spa hotels, with

The Lifehouse Spa & Hotel at Thorpe Le Soken in Essex and The Spa Hotel at

Ribby Hall Village in Lancashire opening in 2011.


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4. BEDFORD HOTEL SUPPLY

______________________________________________________________________________________

4.1. Current Supply

4.1.1. There are currently 20 hotel in, or just on the edge of Bedford Borough, with a

total of 1,008 letting bedrooms. This current hotel supply is analysed below by

standard and location and listed fully in the table overleaf.

Table 3

BEDFORD BOROUGH HOTEL SUPPLY - OCTOBER 2014

Standard

of Hotel

Bedford Town Rural North

Bedford

Wyboston

/St Neots

Bedford Borough

Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms

4 star 2 162 1 103 3 285

Boutique 2 34 2 34

3 star 2 154 1 23 3 177

Budget 5 295 3 177 8 472

Ungraded 2 38 2 22 4 60

Total 13 683 3 45 4 280 20 1008

4.1.2. Most of the Borough's current hotel supply is located in and around Bedford . The

town is served by 13 hotels with a total of 683 letting bedrooms, accounting for

64% of the Borough’s total hotel supply. Bedford has a mix of 4 star, boutique, 3

star, branded budget and smaller non-inspected hotels. There are only two hotels

(The Bedford Swan and the Park Inn by Radisson Bedford) in the town centre1. The

town’s hotel supply is otherwise spread across the Bedford/Kempston Urban Area,

or just outside it. The budget hotels that serve Bedford are all located on the

outskirts of the town, including two hotels on the A421 (the Holiday Inn Express

and Premier Inn Bedford South).

4.1.3. Our research has also identified four small serviced apartment operations in

Bedford - Britannia Wharf (1 apartment); Ashburnham House (3 apartments

marketed by Bridgestreet); Lloyd Court Apartments (3 apartments marketed by

City Stay); and Castle Quay Apartments (2 apartments). These are all residential

apartments that are let on a serviced apartment basis.

1 Taking the town centre as the area covered by the Bedford Town Centre Area Action

Plan 2008


______________________________________________________________________________________


Table 4

BEDFORD BOROUGH - HOTELS – OCTOBER 2014

Establishment Grade Rooms

Bedford Town Bedford Swan 4 star 113

The Barns Hotel 4 star 49

d-Parys Boutique 14

The Embankment Boutique 20

Park Inn by Radisson Bedford 3 star 120

Woodlands Manor Hotel 3 star 34

Holiday Inn Express Bedford Upper-tier Budget 80

Premier Inn Bedford Priory Marina Budget 57

Premier Inn Bedford South (A421) Budget 60

Travelodge Bedford Budget 51

Travelodge Bedford Goldington Road Budget 47

The Shakespeare Hotel n/a 25

Tennyson House Hotel n/a 13

Rural North Bedford The Sharnbrook Hotel 3 star 23

Mill House Hotel, Sharnbrook n/a 9

Queen's Head Hotel, Milton Ernest n/a 13

Wyboston/ St Neots

Wyboston Lakes Hotel 4 star 103

Travelodge Bedford Wyboston Budget 40

Premier Inn St Neots (A1/ Wyboston) Budget 67

Premier Inn St Neots (Colmworth Park) 1 Budget 71

Notes: 1. In Huntingdonshire - just outside Bedford Borough

4.1.4. Beyond Bedford, the Borough has a cluster of hotels at Wyboston including the 4

star standard Wyboston Lakes Hotel, the Bedford Wyboston Travelodge at the

Black Cat Roundabout on the A1, and two Premier Inns, one of which (at

Colmworth Park) is outside the Borough boundary in Huntingdonshire. Wyboston

Lakes also has two conference and training centres - the Wyboston Lakes

Executive Centre (120 bedrooms, 26 conference and syndicate rooms) and the

Wyboston Lakes Training Centre (183 bedrooms, 40 training and syndicate rooms).

While the Wyboston Lakes Hotel occasionally caters for delegates attending

conferences and training courses at these two venues, they essentially operate as

separate trading units on the site. They do not trade in the hotel market.


______________________________________________________________________________________


4.1.5. The other location where there is a cluster of hotels is Rural North Bedford, where

there are three small 3 star standard and ungraded hotels at Milton Ernest and

Sharnbrook. Two of these hotels are independently operated, while the Queen's

Head Hotel at Milton Ernest is part of Greene King's Old English Inns hotel and inns

chain. There are two other serviced accommodation operations worth noting in

this part of the Borough: Tofte Manor operates as a an upmarket country house

venue for weddings, corporate events and inspirational workshops and retreats,

with 12 luxury guest bedrooms; Bodyflight Bedford at Twinwoods Business Park has

10 basic standard bedrooms that are primarily used by skydiving teams when

they are training at the centre during the winter.

4.1.6. Beyond the Borough boundaries there are hotels at St Neots, Sandy, Biggleswade,

Marston Moretaine, Houghton Conquest and Rushden. Moggerhanger Park, to

the west of Sandy (not far from the Bedford Borough Boundary, now operates as

an upmarket conference and wedding venue following a £6m refurbishment.

Table 5

BEDFORD BOROUGH – SURROUNDING HOTELS – OCTOBER 2014

Establishment Grade Rooms

St Neots Abbotsley Golf Hotel 3 star 42

Sandy Holiday Inn Garden Court 3 star 57

Biggleswade Stratton House Hotel n/a 32

Marston Moretaine Travelodge Bedford Marston Moretaine Budget 54

Houghton Conquest Knife & Cleaver 4 star Inn 9

Rushden Travelodge Wellingborough Rushden Budget 40


______________________________________________________________________________________


4.2. Changes Since 2009

New Hotels

4.2.1. The Premier Inn Bedford South (A421) opened in March 2013, with 60 bedrooms.

There have otherwise been no new hotel openings in Bedford since 2009.

4.2.2. In Rural North Bedford, Tofte Manor opened as a country house wedding,

conference and retreat venue in 2009. Bodyflight Bedford has also added its

basic accommodation since 2009.

Hotel Extensions, Refurbishment and Rebranding

4.2.3. Our research has identified the following changes to the Borough's hotel supply

since 2009 in terms of investment in existing hotels:

• The Charles Wells Pub Company has sold half of the De Parys Hotel on De

Parys Avenue to Bedford School. The remaining half of the hotel was

reopened as the d'Parys boutique hotel in February 2014 by new owners

Apostrophe Pubs, following a £1.3m refurbishment programme.

• The Embankment reopened in 2009 as a boutique inn following

refurbishment by its new owners, the Peach Pub Company.

• The Park Inn completed a £2.5m refurbishment programme in 2014

involving a full renovation of all of its ground floor public areas, restaurant

and meeting rooms and a soft refurbishment of its bedrooms.

Refurbishment of the hotel's bathrooms is planned for 2016.

• The Innkeeper's Lodge on Goldington Road was re-branded as the

Travelodge Bedford Goldington Road as part of the company's

acquisition of 52 Innkeeper's Lodge hotels from Mitchells & Butlers in 2010.

• The three Travelodges in the Borough will all have been upgraded to the

new Travelodge bedroom product by the end of 2014.

• The Holiday Inn Express is due to be refurbished in the first half of 2015.

• The Tennyson House Hotel has been refurbished under its new owners.


______________________________________________________________________________________


• Wyboston Lakes Hotel opened a new spa in 2012 and completed a full

refurbishment of its ground floor public areas. The refurbishment of its

bedrooms is due to start in July 2015.

• The bedrooms have all been refurbished as the Woodlands Manor Hotel in

Clapham.

Hotel Closures

4.2.4. The Edwardian House Hotel on Shakespeare Road has been converted to

student accommodation and Hertford House Hotel on De Parys Avenue has

been redeveloped into flats, resulting in the loss of 19 and 23 hotel bedrooms

respectively.

Changes in Bedford Town Hotel Supply 2009-2014

4.2.5. With the closure of these two hotels and the opening of the Premier Inn Bedford

South (A421) Bedford Town's total hotel supply has only increased by 18

bedrooms (2.8%) since 2009.

Planned and Proposed Hotel Development

4.2.6. The Bedford Riverside North development includes plans for a 100-bedroom

Premier Inn. As far we have been able to establish there are no other firm

proposals for new hotels in the Borough.

4.2.7. The owners of two hotels in the Borough indicated that they are considering

applying for planning permission for bedroom extensions and in one case for a

larger function room. A number of the Borough's hotels are planning major

refurbishment programmes in 2015 and 2016 as indicated above.


______________________________________________________________________________________


5. CURRENT HOTEL PERFORMANCE & MARKETS

______________________________________________________________________________________

5.1. Occupancy, Achieved Room Rates1 and Revpar2

5.1.1. Our estimates of average annual room occupancies, achieved room rates and

revpar figures for each part of Bedford Borough for 2012, 2013, 2014 (based on

the information provided by hotel managers and owners), set against the

estimates we calculated for 2008 are summarised in the table overleaf.

5.1.2. In line with the national picture hotel performance in Bedford Borough remained

below or broadly in line with 2008 levels in 2012 for all standards of hotel and all

performance indicators (occupancy, achieved room rate and revpar). There was

a slight improvement in 2013, with occupancies for all standards of hotel rising to

above their 2008 levels for the first time since the start of the recession in 2009.

Hotels of all standards and in all parts of the Borough have seen a significant uplift

in performance in 2014 as a result of the economic recovery and the significant

demand for hotel accommodation in and around Bedford Town that was

generated by Warner Bros' filming of its new Peter Pan film at Cardington Studios

over three months during the summer. Some hotels also reported improved

performance following investment and as a result of better marketing, especially

in terms of the use of online travel agents such as booking.com, LateRooms and

Expedia.

5.1.3. 3/4 star hotel performance in the Borough remains significantly below the national

average, particularly in terms of achieved room rate and revpar. Performance

varies significantly between hotels however, depending on their quality. Bedford's

4 star and boutique hotels trade at significantly higher levels of occupancy than

the town's 3 star hotels, and higher average room rates. The performance of two

of Bedford's 4 star/boutique hotels increased substantially in 2014 to be well

ahead of the national average as a result of the significant high-rated business

that they attracted from the Warner Bros filming in the summer.

1 The amount of rooms revenue (excluding food and beverage income) that hotels achieve

per occupied room net of VAT, breakfast (if included) and discounts and commission charges.

2 The amount of rooms revenue (excluding food and beverage income) that hotels achieve per available room net of VAT, breakfast (if included) and discounts and commission charges.


___________________________________________________________________________________________________________________________________________


Table 6

BEDFORD BOROUGH HOTEL PERFORMANCE 2012-2014 + 2008

Standard of Hotel Average Annual Room

Occupancy

%

Average Annual Achieved

Room Rate4

£

Average Annual Revpar5

£

2008 2012 2013 20143 2008 2012 2013 20143 2008 2012 2013 20143

UK Provincial Hotels (All Standards)1 68.6 69.8 72.6 n/a 64.16 59.22 59.94 n/a 44.92 41.32 43.53 n/a

UK Provincial 3/4 Star Chain Hotels2 70.2 69.6 72.0 73.76 72.91 69.97 71.46 74.906 51.21 48.72 51.48 55.206

Bedford Borough 3/4 Star Hotels7 n/a 66.0 67.1 74.0 n/a 55.29 57.36 62.71 n/a 36.53 38.50 46.46

Bedford Town 3/4 Star/Boutique Hotels 64.1 64.5 65.6 74.4 60.63 59.00 59.89 65.12 38.88 38.09 39.30 48.46

Bedford Town 4 Star/Boutique Hotels n/a 67.3 73.9 80.3 n/a 70.89 67.47 74.31 n/a 47.75 49.89 59.68

Bedford Town Budget Hotels 72.5 71.6 73.0 82.0 n/a 44.57 47.62 53.05 n/a 31.92 34.77 43.48

Rural North Bedford n/a 66.3 68.4 73.5 n/a n/a n/a 50.78 n/a n/a n/a 37.34

Wyboston Budget Hotels 64.8 n/a 74.6 76.8 n/a n/a 46.40 48.68 n/a n/a 34.71 38.38

Notes 1. Source: STR Global 2. Source: TRI Hotstats UK Chain Hotels Market Review 3. Based on forecast figures provided by hotel managers 4. The amount of rooms revenue (excluding food and beverage income) that hotels achieve per occupied room net of VAT, breakfast (if included) and

discounts and commission charges. 5. The amount of rooms revenue (excluding food and beverage income) that hotels achieve per available room net of VAT, breakfast (if included) and

discounts and commission charges 6. Twelve month rolling average to September 2014 7. Bedford Town 3/4 star hotels + the Wyboston Lakes Hotel


________________________________________________________________________________________


5.1.4. Occupancies reported for the Borough's budget hotels were generally below the

typical levels that budget hotels achieve in 2012 and 2013, although varied by

brand and location, with budget hotels in the Wyboston area trading at slightly

higher occupancies than those that serve Bedford Town in 2013. As with 3/4 star

hotels, budget hotel occupancies and achieved room rates increased sharply in

2014 due to the high demand for hotel accommodation generated by the Warner

Bros filming at Cardington Studios during the summer. Strong demand from

contractors working on the new Woburn Forest Center Parcs holiday village in the

first half of the year was also a factor behind the strong performance of some of

Bedford's budget hotels

5.2 Patterns of Demand

5.2.1. Our estimates of average annual weekday and weekend occupancies for hotels

in Bedford Borough for 2014 are summarised in the table below.

Table 7

BEDFORD BOROUGH HOTELS

WEEKDAY/ WEEKEND OCCUPANCIES – 2014

Standard of Hotel Typical Room Occupancy

%

Mon-Thurs Friday Saturday Sunday Bedford Borough 3/4 Star Hotels7 88 54 87 30 Bedford Town 3/4 Star/Boutique Hotels 87 53 82 26 Bedford Town 4 Star/Boutique Hotels 92 67 96 35 Bedford Town Budget Hotels 92 66 88 41 Rural North Bedford 76 80 91 33 Wyboston Budget Hotels 85 74 85 38


________________________________________________________________________________________


Midweek Occupancies

5.2.2. Midweek occupancies were very strong for all standards of hotel in all parts of the

Borough in 2014.

Bedford Town

5.2.3. Weekday occupancies were particularly strong for hotels in and around Bedford

Town. Hotels here were generally fully booked and turning business away on

Tuesday and Wednesday nights for most of the year. Monday occupancies were

not quite as strong for 3 and 4 star, boutique and upper-tier budget hotels, but still

high at 80-90%. Thursday occupancies were generally lower and more variable at

around 60-80%. The town's budget hotels were generally full from Monday to

Wednesday for most of the year. Some also consistently filled on Thursday nights.

5.2.4. Midweek occupancies usually dip for Bedford Town hotels in August, when

corporate demand reduces. This did not happen in 2014 however as a result of the

demand from the Warner Bros filming at Cardington Studios. Midweek

occupancies were generally lower in December, January and February but

otherwise very strong for the rest of the year

Rural North Bedford and Wyboston

5.2.5. Midweek occupancies were not quite as strong for hotels in Rural North Bedford

and Wyboston as they did not benefit from the Warner Bros business in the way

that Bedford Town hotels did. The budget hotels at Wyboston and two of the

hotels in Rural North Bedford frequently filled and turned business away on Tuesday

and Wednesday nights throughout 2014 however. Monday, and especially

Thursday night occupancies were not generally as strong and fluctuated a lot

more. Midweek occupancies were a little lower between November and February

and dipped in July and August for one hotel in Rural North Bedford.


________________________________________________________________________________________


Weekend Occupancies

Bedford Town

5.2.6. Hotels in Bedford Town reported strong demand on Saturday nights between May

and September in 2014. Most hotels were consistently fully booked on Saturday

nights during these months. Some 4 star, boutique and budget hotels also achieve

high levels of occupancy on Saturday nights during the rest of the year. Saturday

occupancies are not as strong and more variable between October and April for

other hotels.

5.2.7. Friday night occupancies for Bedford Town 3 and 4 star and boutique hotels were

generally much lower, although stronger during the summer and high for one 4 star

hotel that has a strong year-round weddings trade. Most of the town's budget

hotels achieved high Friday occupancies for most of the year and frequently filled

and turned business away on Friday nights during the summer.

5.2.8. Sunday night occupancies were very low for all standards of hotel. This is typical for

hotels in similar locations to Bedford.

Rural North Bedford and Wyboston

5.2.9. Friday and Saturday night occupancies are stronger for hotels in Rural North

Bedford and Wyboston due to strong demand from wedding guests and the more

limited stock of hotel accommodation in these locations to cater for this market.

Friday and Saturday night occupancies are particularly strong during the summer

months, when most hotels in these parts of the Borough consistently fill and turn

business away on Saturday nights and sometimes also on Friday nights. Saturday

night occupancies are also strong at other times of the year but Friday

occupancies tend to be lower, especially in the winter. Sunday occupancies are

low all year round.


________________________________________________________________________________________


5.3 Midweek Markets

Bedford Town

5.3.1. Key midweek markets for Bedford Town hotels are as follows:

• Corporate demand from companies in Bedford, at Colworth Park (in

particular Unilever) and Millbrook Proving Ground;

• Some overspill corporate demand from Milton Keynes and Newport Pagnell;

• Business groups coming for corporate track days with PalmerSport at the

Bedford Autodrome for some hotels;

• Film productions periodically at Cardington Studios, including the Warner

Bros Peter Pan film in 2014;

• Contractors working on construction and development projects - a key

market for budget hotels and secondary midweek market for one 3 star

hotel.

5.3.2. Residential conferences are a very minor market for some 3 and 4 star hotels.

5.3.3. Large events, conferences, product launches and exhibitions at Millbrook Venues

at Millbrook Proving Ground occasionally generate demand for Bedford town

centre hotels.

5.3.4. The town's budget hotels attract a broadly even mix of corporate guests and

contractors. Contractors are a stronger market for some budget hotels, while

corporate demand is more significant for others.

5.3.5. The town's hotels attract very little midweek leisure business other than small

amounts of demand for leisure breaks, overseas tourist stop-overs, midweek

weddings and group tours in the summer months.


________________________________________________________________________________________


Rural North Bedford

5.3.5. Key midweek markets for hotels in Rural North Bedford are:

• Corporate demand from Unilever and other companies at Colworth Park,

companies on the other business parks in the area, and some demand from

companies in Bedford and Rushden;

• Business groups coming for corporate track days with PalmerSport at the

Bedford Autodrome and corporate activity days at Sporting Targets.

5.3.6. Tofte Manor also caters to some extent for corporate event and team building

stays.

5.3.7. In terms of other midweek markets for hotels in this part of the Borough:

• Millennium Studios at Thurleigh Airfield Business Park generates demand for

budget-priced accommodation in October and November and January

and February from crews involved in band rehearsals;

• Some of the sky divers that come to train at Bodyflight Bedford during the

winter require hotel accommodation in the area;

• Residential conferences are a very minor midweek market for one hotel;

• Leisure breaks are a very minor midweek market for another hotel.

Wyboston

5.3.8. The main midweek market for Wyboston hotels is corporate demand from

companies at St Neots, Huntingdon, Sandy and to a lesser extent Cambridge,

Bedford and Milton Keynes. Contractors are the other key midweek market,

particularly for the area's budget hotels. Residential conferences are a minor

midweek market for the Wyboston Lakes Hotel. It also attracts a small amount of

overspill business from delegates attending conferences and training courses at the

Wyboston Lakes Executive and Training Centres. All of the hotels in this part of the

Borough attract some midweek leisure business during the summer. The Wyboston

Lakes Hotel occasionally caters for midweek weddings and functions that generate

bedroom business. The Cereals arable industry show at Chrishall Grange to the

south of Cambridge generated some demand for Wyboston hotels in 2014. The

show will move to Lincolnshire in 2015 however.


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5.4. Weekend Markets

Bedford Town

5.4.1. People attending weddings and functions are the main source of weekend

business for most hotels in Bedford Town, especially the town's budget hotels and

one 4 star hotel.

5.4.2. UK group tours are the main weekend market for one 3 star hotel and a minor

weekend market for one of the town's 4 star hotels. This is very low-rated business

that hotels take in the absence of demand from other higher paying markets.

Group tour operators use Bedford hotels as a base for visiting Cambridge, Bletchley

Park, Woburn Abbey and Oxford.

5.4.3. The town's 3 and 4 star and boutique hotels attract some demand in terms of

weekend break stays, typically accounting for 10-15% of weekend occupancy.

Hotels are largely driving this business on price through the major online travel

agents. The Bedford Swan attracts some spa break business. The town's budget

hotels do not attract weekend break stays.

5.4.4. Events in and around Bedford and further afield can generate weekend demand

for hotel accommodation in Bedford. Events mentioned by a number of the town's

hotel managers as generators of bedroom business were as follows:

• Bedford River Festival;

• The British Formula 1 Grand Prix at Silverstone;

• The RSSB religious festival at Haynes Park;

• England athletics championships at Bedford Athletics Stadium - particularly

for budget hotels.

5.4.5. Events mentioned by just one or two hotels as generators of bedroom business were

as follows:

• Bedford International Kite Festival;

• Bedford Film Festival;

• Bedford Regatta;

• University of Bedfordshire graduations;

• Lou Lou's Bedford Vintage Fair;

• Bedford Victorian Christmas Fair;

• Some events at Santa Pod e.g. Bug Jam;

• Twinwood Festival.


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5.4.6. Other weekend markets for the town's hotels are:

• Groups coming for PalmerSport track days at Bedford Autodrome;

• People visiting friends and relatives in the town - a key market for budget

hotels ;

• Overseas tourists stopping off in the town.

5.4.7. People staying overnight the night before they start a break at the Woburn Forest

Center Parcs holiday village is a new market that some of Bedford's budget are

hotels have begun to attract.

5.4.8. Corporate arrivals for the week ahead are a key market on Sunday nights.

Rural North Bedford

5.4.9. The most significant market by far for hotels in Rural North Bedford is people

attending weddings and functions at the area's hotels and other venues such as

Tofte Manor and Pavenham Park Golf Club. Other weekend markets are people

visiting friends and relatives in the area, and teams racing at Santa Pod. Spectators

for Santa Pod events do not appear to be a market that stays overnight in the

area. The Twinwood Festival generates good demand for some of the area's hotels.

Hotels in Rural North Bedford do not attract weekend break stays.

Wyboston

5.4.10. The Wyboston Lakes Hotel attracts strong weekend demand for golf and spa

breaks, acting very much as a destination hotel. The hotel's other main weekend

market is wedding guests.

5.4.11. The main weekend market for budget hotels in the Wyboston area is people

attending weddings and family parties, together with people visiting friends and

relatives in the area or attending events, and some leisure break stays, primarily as

a lower cost base for visiting Cambridge or to visit National Trust properties in the

area.


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5.4.12. Events that generate demand for Wyboston hotels are as follows:

• The British Formula 1 Grand Prix at Silverstone;

• Duxford Air Show;

• Air shows and events at the Shuttleworth Collection;

• Athletics competitions at Bedford Athletics Stadium;

• Sailing competitions at Grafham Water;

• Keysoe Equestrian Trials

• Race meetings at Hunts Kart Racing Club at Kimbolton;

• Cambridge University graduations.

5.5. Market Trends

5.5.1. As already identified above, hotels in and around Bedford benefitted from the

Warner Bros filming at Cardington Studios for three months during the summer of

2014. This generated significant demand for budget-priced hotel accommodation

for the production crew and demand for higher quality hotel accommodation for

the cast. It was particularly good business for the town's hotels as it was high-rated

and enabled hotels to achieve high occupancies in August, when they would

otherwise have seen a dip in occupancy when corporate demand reduces at this

time of year. It also helped to boost Sunday night occupancies.

5.5.1. Corporate demand for hotel accommodation began to recover across the

Borough in 2013 and has grown in 2014 as the economic climate has improved.

Most of the Borough's hotels reported an increase in the volume of corporate

business that they have received in 2014. Some also reported an increase in

corporate rates, while others have yet to see any recovery on this front. The

corporate market remains very competitive. Hotels that have invested have

generally been the most successful in terms of being able to increase corporate

rates.

5.5.3. The Borough's budget hotels have seen an increase in contractor business in 2014

as a result of renewed construction activity in the area. The development of the

new Woburn Forest Center Parcs holiday village generated significant contractor

business for some Bedford budget hotels.


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5.5.4. One hotel in the Borough has grown its residential conference business through

targeted marketing. Residential conference demand has remained largely

unchanged for the other hotels in the Borough that cater for it, and continues to be

a relatively small market for these hotels.

5.5.5. A number of the Borough's hotels reported strong growth in demand from people

attending weddings in 2014.

5.5.7 The two hotels that have a stronger product for leisure breaks (the Bedford Swan

with its spa and the Wyboston Lakes Hotels that offers golf and a spa) reported

some growth in leisure break business in 2014.

5.6 Denied Business1

Bedford Town

5.6.1. Bedford's 3 and 4 star and boutique hotels consistently turn business away on

Tuesday and Wednesday nights, typically up to at least up to 10-20 rooms per

night. In 2014 they were also turning business away on Monday and Thursday

nights between June and August as a result of the demand from the Warner

Bros filming at Cardington Studios. Some hotels periodically turn business away on

Thursday nights if they have a business group staying for a corporate track day with

PalmerSport.

5.6.2. Some of Bedford's 3 and 4 star and boutique hotels regularly deny business on

Saturday nights between May and September when they are full with wedding

parties or occasionally with event visitors. Saturday denials can be as many as 10-20

rooms for some hotels. Three hotels also sometimes turn business away on Friday

and Sunday nights in the summer due to weddings demand.

5.6.3. Bedford's budget hotels regularly deny business on 3-4 midweek nights throughout

the year. Midweek denials are significant for some budget hotels. The town's

budget hotels also consistently refuse business on Saturday nights throughout the

year, to a significant extent for some budget hotels, especially during the summer

months. One of the town's budget hotels also turns away bookings on Friday nights,

again to a significant degree in the summer.

5.6.4. Midweek and weekend denials have increased for all standards of hotel in Bedford

in 2014.

1 Business that hotels have to turn away because they are fully booked


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Rural North Bedford

5.6.5. Hotels in Rural North Bedford regularly turn business away during the week on at

least 2-3 nights and sometimes all four. Midweek denials can be up to at least 10-20

rooms. Hotels also turn away residential conference business and business groups

from PalmerSport because they do not have sufficient bedroom capacity to cope

with these markets alongside their regular corporate clientele.

5.6.6. One hotel in Rural North Bedford regularly turns away significant business on

Saturday nights, and sometimes also on Friday nights, throughout the year due to

the strength of its weddings and functions business. Another hotel occasionally turns

business away on Saturday nights in the summer if it has a wedding on.

5.6.7. One hotel reported an increase in denied business in 2014, both during the week

and at weekends. Another reported no change in the levels of business that it has

been turning away.

Wyboston

5.6.8. All hotels in the Wyboston area consistently turn business away on Tuesday and

Wednesday nights all year round. Budget hotels in this location also regularly refuse

bookings on Monday and Thursday nights. Midweek denials are significant for some

budget hotels and have increased for all hotels in 2014.

5.6.9. Wyboston hotels regularly deny business on Saturday nights throughout the

year. Budget hotels also turn bookings away on Friday nights between April and

October. Denials on these nights are significant for budget hotels, particularly

during the summer. Weekend denials have also increased in 2014.


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5.7. Prospects for 2015

5.7.1. Hotels of all standards across the Borough are positive about their prospects for

2015. All hotels expect to maintain or increase their room occupancies in 2015 and

most see potential to grow their room rates. Hotel managers are focusing next year

primarily on yielding room rates on the back of stronger occupancy performance.

Some hotel managers are particularly optimistic about their prospects for next year

following investment and as a result of current and planned increased marketing.

5.7.2. Hotel managers expect to see continued growth in corporate demand in 2015 as

the national economy improves and Bedford's economy grows. Wyboston hotels

expect to benefit from the substantial growth that is currently taking place in the

Cambridge economy. The continued attraction of film productions to Cardington

Studios is seen as being particularly important. Further growth in weddings business

is expected as the Borough's population grows. Some hotel managers see potential

to attract residential conferences and leisure break stays through more proactive

marketing of Bedford as a conference and leisure break destination.

5.7.3. A number of hotel managers expressed some concerns about the planned Premier

Inn as part of the Riverside North scheme, which they felt could potentially dilute

the town's hotel market and possibly impact on their occupancies and achieved

room rates as a result.


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6. FUTURE GROWTH PROSPECTS

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6.1 Strategic Context

6.1.1 Bedford forms part of the South East Midlands Local Enterprise Partnership. Its

Strategic Economic Plan (SEP) seeks to create 94,700 new jobs by 2020, build 70,600

new homes and invest £60m of Local Growth Fund resources in 2015/16 alone,

alongside over £200m of local public and private sector investment.

6.1.2 Four key sectors are identified as having the capability, the major assets and the

greatest potential to rapidly grow. These are High Performance Technology,

Logistics, Manufacturing and Advanced Technology (including Food and Drink)

and the Cultural and Creative Sectors (including the visitor economy and sport).

The strategy and interventions focus on projects that will develop these sectors, but

also on infrastructure projects, particularly in terms of transport improvements, that

will enable them to flourish.

6.1.3 Bedford Borough is identified in the SEP as having key sector representation in

advanced manufacturing and engineering; food production and research; life

sciences, biotechnology and health; low carbon technologies; finance and

business services (including ICT); and creative (including film, digital, media and

design).

6.1.4 The Bedford Economic Development Strategy and Growth Plan have informed the

preparation of the SEP which reflects the priority sectors for development above.

Additional actions of relevance to this study and related hotel demand include

raising the profile and improving the perception of Bedford as a business location

of choice, enhancing the area’s infrastructure to support business growth, and up-

grading Bedford town centre.

6.1.5 Bedford is forecast to see significant levels of growth over the Local Plan period to

2032. This includes:

• An increase in population of between 26,890 and 33,160;

• An increase in the number of new homes of between 14,980 and 19,000

• An increase in employment of 14,000 – 18,000 jobs


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6.2 Key Projects in Bedford Borough Driving Demand

6.2.1 Business and Technology Park Development

• Millbrook Technology Park

o Millbrook is a 700 acre proving ground and technology centre

recognised as one of Europe’s leading independent technology centres

for the design, testing and development of automotive and propulsion

systems, and a pioneer in low carbon technologies. Under new

ownership (Rutland Partners LLP), a growth plan has been put in place

to develop the site as a flagship for the automotive industry by investing

in new facilities to improve its technical and operational capabilities.

The plan includes an ambition to diversify its business and establish the

site as a base for a wider range of experimental research and

development businesses, particularly in the areas of energy storage, low

emissions and advanced propulsion. With world-leading facilities, the

site has the ability to expand further internationally, attracting

investment and businesses into the UK. Planning consent has recently

been granted for an initial phase of 24,900 sq m of office, research and

development space. Although physically in Central Bedfordshire, it is an

important driver of business to Bedford Borough hotels and will continue

to be so.

• Colworth Science Park

o Colworth has a world-class reputation for the commercialisation of

science and developing innovative products and is an established

location for scientific excellence in food, health and wellness. The park

has been developed by Unilever and global property group Goodman,

and hosts one of Unilever’s 5 global R&D centres, focusing on health

nutrition. In July 2014 Colworth Park was acquired by Palmer Capital

and Wrenbridge. Currently occupying 91 acres with 350,000 sqft of R&D,

office and site support facilities, the new owners plan to expand the

facilities here to attract new companies, with a target to create 500

new jobs over the next 5 years.


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• Marston Vale Innovation Park

This project is expected to be underway in 2015 and create some 1,600 jobs by

2025 in hi-tech manufacturing uses. An innovation centre and workshop cluster

is being looked for which may benefit from funding by SEMLEP.

• Other Emerging Business Parks & Allocations

o Additional growth in demand will come from new business parks and

allocations that will deliver employment and economic growth. These

include:

� Bell Farm is an 18ha strategic site fronting the A421 at its junction

with the new western by-pass A428, for B1 and B8 uses - estimated

90,000 sq m of development and 1800 jobs.

� Medbury Farm, Elstow – is a medium term site for a high quality

business park which will be focused on research and development

and B1 office uses. The site is 31ha and will deliver 124,000 sq m of

development and create 3100 jobs.

� Wixams is the site of a major urban extension with over 4,000 new

homes and a fast dual carriageway link to the A421. A major

employment area of over 2.5m sq ft is being considered for the

northern expansion area of this development accommodating

around 3,000 jobs. The Wixams Island site is available in the short

term and is designated for prestigious B1 development

(12,000m2/300 jobs). Additional employment land at Wixams may

be available in the medium to longer term.

Bedford Borough Hotel & Visitor Accommodation Futures- Final Report

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STRATEGIC EMPLOYMENT SITES ACROSS BEDFORD BOROUGH

Bedford Borough Hotel & Visitor Accommodation Futures- Final Report

___________________________________________________________________________________________________________________________________________



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6.2.2 Developing the Creative Sector

• Millennium Studios, a subsidiary of Elstree Light and Power and a significant

creative company, has acquired a group of buildings at Thurleigh Airfield

Business Park as a creative hub providing a wide range of on and off site

facilities and support for filming, recording and pop band rehearsals. There are

plans to develop additional recording studio capacity here. The same

company has taken over Shed 2 at Cardington Studios, which has been used

by Warner Bros to film the latest series of Batman films and more recently its new

Peter Pan film in 2014. They have ambitions to secure at least one, and possibly

two major film productions per year, thus continuing to generate significant

levels of business for Bedford hotels from production crew and cast members.

6.2.3 Improving Connectivity

• The East West Rail Project

o The East West Rail Project that will provide a rail link from Oxford to

Aylesbury, Milton Keynes and Bedford. Construction commenced in

2014 between Oxford and Bicester and works east of Bicester are

programmed for the coming years. Network Rail plan to have services

running by March 2019. A consortium of local authorities have worked

together, supported by SEMLEP, to deliver this project and will be

making a local contribution of around £45m to the total cost of the

£400m project to be delivered by Network Rail. This route is now part of

the electric spine that will carry freight traffic from Southampton to

Sheffield without the need to travel through London. The partners are

now focussing on taking the line across from Bedford to Cambridge and

ultimately linking with the East Coast ports.

• Wixams Rail Station

o Planning permission has recently been approved for a new rail station

located on the western edge of the Wixams new settlement

development which will provide links with Bedford and Central London

stations once completed. Developers Gallagher have committed

£17.3m to the project and are working with Network Rail to secure its

delivery, though no start or opening dates have been announced.


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• A421 improvements

o The dualling and improvement of the A421 has delivered a strategic

corridor that will bring forward the development of four major

employment sites, creating over 5000 jobs, and providing essential

infrastructure to connect with the Oxford-Cambridge Arc.

• Bedford Western Bypass Northern Section

o Completion of the bypass is part of the Council’s Economic

Development Strategy and Growth Plan. It will open up land for housing

and commercial development and add essential highway capacity.

Work started on site in the Autumn of 2014 and it is expected to be open

to traffic in 2016.

• Black Cat Roundabout Improvements

o Improvements to the Black Cat Roundabout at the junction of the A421

and A1 are currently underway to relieve serious issues of congestion,

particularly at peak times. The roundabout will be enlarged and the

approaches are to be widened and signalised. This is part of the

Government’s Pinch Point Programme where £200m has been

allocated for investment in the strategic road network. The investment

here is circa £5.6m.

• Cambridge-Bedford-Milton Keynes Expressway

o The Government’s 2014 Autumn Statement has announced resources

for further dualling of the A428 to create a continuous ‘expressway’ from

Cambridge to Bedford and Milton Keynes to include a grade separated

junction at the Black cat Roundabout.


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6.2.4 Universities

• Cranfield University is internationally renowned within its field of post graduate

education in engineering and business studies. Further development here

includes a key SEMLEP project for the development of an Advanced Integrated

Engineering Centre for Transport Systems to deliver education and training on

systems integration.

• The University of Bedfordshire has expanded from 16,000 students in 2007 to

24,000 by 2012. Over this period £180m has been invested in facilities and

infrastructure. The University’s strategic plan includes an ambition to grow

student numbers by a further 2000 by 2017 and to continue to attract

international students – currently from over 80 countries around the world – and

to spin out benefits to the local community, currently valued at over £300m of

spend.

6.2.5 New Homes and Communities

• As a focus for growth, Bedford will see a significant increase in its population

over the next 20 years via a major house-building programme delivered

through urban extensions and a new community of over 4500 new homes and

10,000-15,000 people at The Wixams. The majority of this expansion is taking

place to the west and south west of Bedford. The new Local Plan with

additional housing targets will be seeking to identify additional sites for housing

development.

6.2.7 Regenerating Bedford Town Centre

• Following the investment in Bedford’s Cultural Quarter around Castle Quay,

there continues to be some live regeneration activity in Bedford Town Centre.

Chief amongst these is Riverside North, a £25m scheme to include a cinema, a

100 bedroom Premier Inn, and a series of restaurants and bars, estimated to

attract around 500,000 people a year and create 250 jobs. Planning permission

has been granted and work has now started. Work is also underway on

regenerating the area around Bedford Bus Station, building a new bus station

and improvements to surrounding car parks. Whilst the planned construction of

the new Bedford Railway Station has been deferred, work to extend the

platforms and improve parking has recently been completed.


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6.2.8 Leisure Tourism Development

• Experience Bedfordshire is the destination marketing organisation for the

county. Whilst there is no current tourism strategy as such, the Tourism

Partnership is seeking to grow the visitor economy with a target of 3% growth

per annum, with a particular focus on attracting more overnight visitors.

Particular market opportunities identified include business and conference

tourism, film and TV and group tours. A lack of visitor accommodation was

identified as limiting growth in the latest Tourism Growth Strategy.

• There are two key proposals to make more of the area’s water resources:

o The development of the Bedford to Milton Keynes Waterway, which will

create a 16 mile link between the River Great Ouse at Bedford and the

Grand Union Canal at Milton Keynes, and see the development of a

Waterway Park along its route, in the case of Bedford this will be to the

south west/west of the town. Schemes at Kempston (including links with

the Box End Park Water Sports Centre) and Wootton will help deliver part

of the waterway and park, including the canal, cycleways, footpaths

and green infrastructure. The total scheme is expected to cost around

£200m and attract 85,000-150,000 day and staying visitors p.a., but with

the potential to attract visitor numbers of between 500,000 and 750,000

should an iconic attraction be created at Brogborough Hill – under

discussion is the Brogborough Whirl spiral boat lift.

o The proposals for Bedford River Valley Park will see the development of

over 2,000 acres of land east of Bedford to create a regional park

around Willington in the floodplain of the Great Ouse to include a 2.3km

Olympic standard rowing lake. The project could include the creation

of an activity hub and facilities for cycling, rowing, canoeing, walking,

swimming, fishing, live music festivals and events, and places to eat.

With the proposed rowing lake, watersports facilities, inland bathing

beach, mountain bike trails, canoe trails, top class fishing facilities,

outdoor classrooms, visitor interpretation, motor cross facilities and

potential for festivals and events, the River Valley Park offers real

potential to add value to Bedford’s leisure offer for visitors and residents

alike, that could also incorporate the delivery of some suitable visitor

accommodation


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6.3 Growth Prospects by Market

6.3.1. Our research suggests the following prospects for future growth in demand for hotel

accommodation in Bedford Borough:

o Corporate demand for hotel accommodation looks set to increase significantly

in Bedford given the planned development of science, technology, innovation

and business parks around the town and their potential to attract major new

national and international companies in sectors that are typically productive in

terms of generating demand for hotel accommodation. Major new business

parks such as Bell Farm (Bedford Connect), the Marston Vale Innovation Park

and eventually Medbury Farm, are likely to become significant new drivers of

corporate demand for hotel accommodation and may be able to support new

hotel development in their own right, depending on the number, size and type

of companies that they attract.

o The potential expansion of Colworth Science Park, Thurleigh Airfield Business

Park and Twinwoods Business Park could generate new corporate demand for

hotels in Rural North Bedford.

o There could be an increase in long-stay corporate demand given the sectors

that the Borough Council and SEMLEP are targeting for the Borough, particularly

if international companies are attracted.

o Film productions at Cardington Studios should continue to periodically

generate substantial demand for hotel accommodation in Bedford given the

ambitions of the new owners of Shed 2 to secure at least one, and possibly two,

major film productions per year. The greatest demand will be for budget hotel

accommodation for crew members. Film productions will also generate

demand for high quality hotel accommodation for the cast. Serviced

apartments could also be an attractive option for this market, given its long stay

nature.

o There is likely to be significant growth in contractor business, particularly for

budget hotels, given the scale of construction work that is planned in and

around the Borough.


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o There is some scope for growth in residential conference business for hotels that

can cater for it, given the continuing national recovery in this market; the

development of the Borough's economy and attraction of new companies;

possible supply-led growth if new hotels with good conference facilities are

developed, including potentially country house and golf hotels; and more

proactive targeting of this market by hotels, either individually or collectively,

possibly with the support of the Borough Council. Given its central location and

good and improving road and rail links, Bedford is well placed to attract

footloose corporate and association conference business.

o There could be some growth in leisure break demand for hotels in the Borough,

most likely through more proactive marketing of existing events and festivals

and the development of new ones, and potentially also as a result of the

development of watersports, particularly if the rowing lake is progressed as part

of the Bedford River Valley Park. Hotels may also be able to drive leisure break

business through online travel agents (booking.com, LateRooms, Expedia etc.)

or flash sales sites such as Groupon, Travelzoo and Secret Escapes, albeit at

discounted prices and high commission charges. Bedford is unlikely to become

a major leisure break destination, unless a major visitor attraction project is

progressed. Leisure breaks are likely to remain a relatively minor market for the

Borough's hotels therefore.

o New country house and golf hotels (if developed in the Borough) should be

able to attract leisure break demand, particularly if they also have spas, other

leisure and sports facilities and a high quality food offer. Existing and new

boutique hotels in Bedford may also be able to attract leisure break business

through the distinctiveness and quality of their offer and food.

o There could be potential for growth in demand from corporate groups coming

to undertake corporate activity and team building days at PalmerSport,

Bodyflight, Sporting Targets, Tofte Manor, Box End Park, Skirmish Central

Paintball, Wyboston Lakes Water Sports Centre or one of the Borough's golf

courses.

o Demand from people attending weddings and family parties and visiting friends

and relatives in the Borough is set to increase significantly as the Borough's

population grows.


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7. FUTURE POTENTIAL FOR HOTEL DEVELOPMENT

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7.1 Hotel Demand Projections for Bedford Town

7.1.1. In order to provide an indication of the number of new hotel bedrooms that might

be needed in Bedford Town through to 2032 as the town's hotel market grows, we

have prepared projections of possible future growth in hotel demand in the town

to 2019, 2024, 2029 and 2032, using our Hotel Futures demand forecasting model.

Projections have been prepared for 4 star/boutique hotels and budget/3 star

hotels taking the current supply of hotels1 in and around the town and 2014

roomnight demand as the baselines for the projections. Our 2014 survey of hotel

managers shows very little difference in achieved room rate performance between

Bedford's budget and 3 star hotels, while 4 star and boutique hotels in the town

trade at higher room rates. We have therefore prepared projections for these two

categories of hotel. 2014 was a very strong year for Bedford hotels as a result of the

Warner Bros filming at Cardington Studios during the summer. The new owners of

the studios are confident about attracting at least one major film production to the

site per year. Assuming that they can achieve this it thus makes sense to take 2014

as the baseline year for the hotel demand projections. Projections have been

prepared for low, medium and high growth scenarios, taking the employment and

population forecasts provided by the Borough Council as a starting reference

point. The projections assume that growth will be unconstrained by site availability

and planning policy. The methodology and assumptions used for the projections

are set out at Appendix 3.

1 Excluding any committed hotel development/schemes under construction


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7.1.2. The results of our demand projections are set out in the table below.

Table 8

BEDFORD TOWN

PROJECTED REQUIREMENTS FOR NEW HOTEL DEVELOPMENT – 2019-2032

STANDARD OF

HOTELS/YEAR

PROJECTED NEW ROOMS REQUIRED

LOW

GROWTH

MEDIUM

GROWTH

HIGH

GROWTH

4 Star/Boutique

2019 46 52 60

2024 56 69 87

2029 67 87 117

2032 74 99 136

Budget/3 Star

2019 95 109 133

2024 133 163 215

2029 173 221 309

2032 199 258 372

TOTAL NEW HOTEL ROOMS

2019 141 161 193

2024 189 232 302

2029 240 308 426

2032 273 357 508

7.1.3. These results show potential for:

• The expansion of existing hotels;

• One, and possibly two new 4/5 star boutique hotels (assuming 30-40

bedrooms per hotel);

• Up to 3-4 new budget, upper-tier budget1 or 3/4 star hotels (assuming an

average of 100 bedrooms per hotel)

1 Brands such as Express by Holiday Inn, Ramada Encore, Sleep Inn, Hampton by Hilton


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7.2 Hotel Developer & Operator Interest in Bedford

7.2.1. In order to establish the likelihood of bringing hotel development forward in line with

the market potential identified, Hotel Solutions undertook a hotel developer and

operator testing exercise, via structured telephone interviews with the Acquisitions

Directors of the major hotel brand owners in the UK as well as the developers and

operators of some emerging hotel offers known to be active in the market currently.

7.2.2. A total of 15 companies were contacted. Many of these, such as Accor,

InterContinental Hotel Group, Hilton and Wyndham, operate multiple brands from

budget through to luxury offers, so the coverage in terms of brands tested is much

more extensive. 12 responses were received. The sample was selected to have fit

with the market potential identified, both immediate and medium to longer term,

and to test out the conditions that would make delivery of other standards and

types of hotel deliverable.

7.2.3 7 companies expressed potential interest in Bedford for 12 brands; 5 were not

interested. For those not interested the principal reasons were:

o The nature/scale of their offer meant they were focusing only on major

cities;

o Brands new to the UK and at the early stages of their development require

maximum market exposure and mature hotel markets and so also tend to

concentrate on key regional cities first;

o There were not enough significant demand drivers, both corporate and

leisure;

o They already have a presence in or around Bedford and would not want to

compete with these existing units.


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7.2.4 Amongst those potentially interested, in many cases, there was limited knowledge

of the Bedford market, resulting in responses not being well-informed. Several

consultees had hotels in surrounding destinations, such as Milton Keynes, which to

some extent overshadows Bedford, as it has a larger and more mature hotel

market. However, Bedford’s population at over 150,000, is very much in line with

the size of town that most hotel brands will target for their larger hotel offers at all

levels in the market, so most were prepared to consider investment or

representation here.

7.2.5 In terms of standard, the interest came mainly from budget, upper tier budget and

3 star brands, reflecting the rates currently being achieved by Bedford’s hotels.

7.2.6. In terms of location, many of the brands that expressed interest in Bedford would

normally choose a town centre location, provided there are enough demand

drivers there – particularly offices for corporate demand, and leisure drivers/some

evening economy uses. However, the respondents we spoke to in the main did not

know the town centre well enough to identify this as their favoured location. At the

time of our previous Hotel Futures study, issues were raised about the quality of the

town centre environment, and also the fact that many of the larger drivers of

corporate demand are situated on business parks outside the town, both north and

south. Boutique hotel uses however, are most likely to be town centre, requiring an

attractive and characterful historic building. The boutique hotel interest expressed

in Bedford was from a major national hotel operator who was well-informed and

expressed a desire to be as close to the river/Embankment as possible.

7.2.7. Most respondents did not know Bedford well enough to rule out an out of town

location, particularly when informed about the growth in business/employment

park sites along the A421. The A421 also has appeal for the visibility it gives to a

busy routeway. Indeed the last 2 new hotels in Bedford, the Holiday Inn Express and

the Premier Inn, have located here. There are also some hotel products that need

an out of centre location because of the nature of their business model and design,

including Village Urban Resort, which requires a site of around 3 acres and is

predominantly business park based.


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7.2.8. We did not establish any interest from hotel developers/operators in the

A1/Wyboston area. Relatively few hotel companies are now developing roadside

hotels unless they have significant drivers close to them; they recognise the need for

a core of locally based/generated demand as transient business can soon move to

other locations.

7.2.9. The market work has identified potential for destination hotel offers in the rural area

– country house hotels and golf hotels. It is difficult to test the market for these offers

as they tend to be one-offs delivered by independents, with relatively few chains in

the market for developing (as opposed to acquiring) such hotels. However, Bedford

Borough’s excellent accessibility via the A1 and M1, its potential catchment for

short breaks and residential conferences from London, and the strength of the

weddings market in the area, are advantages for this type of product.

Development would be dependent upon a suitable property and site becoming

available for conversion and development and interest in hotel development from

golf clubs. We did identify one such property during the course of our research –

Hinwick House at Podington, a 12 bedroom Grade 1 listed manor house set in 37

acres – and understand from the agents this is about to be sold to an independent

operator for conversion to a country house hotel.

7.3 Hotel Site Availability

7.3.1. The availability of suitable hotel sites will clearly be a key determinant of future hotel

development in the Borough. In terms of town centre hotel sites a 100-bedroom

Premier Inn is coming forward as part of the Riverside North development. As far as

we have been able to establish no other hotel sites are currently identified in the

town centre. We think it likely however that hotels could be incorporated into other

mixed-use schemes as they come forward in the town centre, most likely in terms of

budget hotels, rather than boutique hotels. The only town centre building identified

as potentially suitable for conversion to a boutique hotel is 6/7a St Paul's Square.


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7.3.2. In terms of hotel sites in out of town locations there are more than enough strong

sites to meet the identified market potential through until 2032, including Medbury

Farm at Elstow (identified as suitable sites for a hotel in the Allocations and

Designations Local Plan) and the Marston Vale Innovation Park scheme (for which

a hotel use is indicated in the Master Plan document). The other allocated

development sites identified in the Allocations and Designations Local Plan as

being suitable for a hotel use and most of the sites put forward in this round of the

‘call for sites’ process (assessed at Appendix 4) are unlikely to be suitable for

branded hotel development of any scale, other than possibly the Goldington Road

site. The others are more suitable for small scale development by independent

operators, the opportunity for an existing small hotel to expand, or the

development of a small number of hotel bedrooms as an adjunct to a wider

development where an element of serviced accommodation might complement

and help support other uses. Overall, they are weaker hotel sites and generally less

well-located in terms of current and future demand generators.


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8. CONCLUSIONS & RECOMMENDATIONS

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8.1. Identified Hotel Development Potential

8.1.1 The different modules of research - our analysis of national hotel development

trends; the results of our survey of hotel managers regarding current hotel

performance and markets; our assessment of the potential for future growth in hotel

demand across the Borough and what will drive this; the hotel demand projections

for Bedford Town; our survey of hotel developers; and our assessment of hotel site

availability - combine to show the following requirements and opportunities for

hotel development across Bedford Borough through until 2032:

Bedford Town

8.1.2. Our projections for future hotel requirements in Bedford Town and assessment of the

town's hotel market and how it is likely to grow show market potential for the

following new hotel development through until 2032 in and around the town:

• Potential for additional supply (up to 136 bedrooms given high growth in

demand) at the top (4 star/boutique) end of the market. We think that this

would most probably be achieved through:

o The expansion of existing 4 star hotels (if sites will allow);

o The development of one, and possibly two new 4/5 star boutique

hotels through the repositioning of existing or ungraded hotels

and/or the conversion of suitable buildings in the town centre.

• Potential for the town's existing budget hotels to expand, where they have

land available to do so.


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• Scope potentially for up to 4 further budget, upper-tier budget1 or 3 /4 star

hotels, most likely in terms of:

o One, and possibly two budget hotels in the town centre;

o One, and possibly two upper-tier budget or 3 / 4 star hotels on the

new business parks that are planned around Bedford;

o A small budget hotel alongside a new-build pub restaurant on the

northern edge of the town, to service local corporate demand as it

develops here.

8.1.3. Other elements of our research suggest that that there could be some scope for

serviced apartments in Bedford town centre, particularly to meet demand from film

productions at Cardington Studios and growth in long stay corporate demand as

the town's economy develops and new companies are attracted, especially

international companies. We think additional serviced apartment supply is most

likely to be achieved through the sub-letting of residential apartments by a local

serviced apartment operator, rather than purpose-built serviced apartment

complexes, although these should not be ruled out.

8.1.4. There could be scope for an element of hotel accommodation to be developed as

part of an existing or potential new watersports centre in the Bedford area e.g. as

part of the Bedford River Valley Park. Other forms of visitor accommodation such as

hostels, holiday lodges or touring caravan and camping provision may be more

appropriate for such sites however.

Rural North Bedford

8.1.5. The study has identified a distinct and growing hotel market in Rural North Bedford

with hotels here catering for corporate demand from companies at Colworth

Science Park and the other business parks in this part of the Borough, corporate

groups coming for track days at PalmerSport and the cluster of other corporate

activity venues in the area, and weddings and functions trade. The current strength

of demand for hotel accommodation here and anticipated future growth in

these markets shows potential for the following in terms of hotel development in this

location:

1 Higher quality limited service hotels. UK upper-tier budget brands currently are Holiday Inn

Express, Hampton by Hilton and Ramada Encore.


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• The expansion of existing hotels in terms of additional bedrooms, enlarged

or new functions space, and possibly the addition of spa and/or leisure

facilities.

• The development of country house hotels, given suitable country house

properties for conversion.

• The opening of hotels on golf courses.

• The development of hotel bedrooms/ additional hotel bedrooms linked to

corporate activity and/or wedding venues.

8.1.6. There might also be potential for the development of a major new golf resort in this

part of the Borough, given a suitable site that would be acceptable in planning

terms. Our research did not identify any current interest in such a proposal but that

is not to say that one could not come forward in the future.

Wyboston

8.1.7. There is also a distinct and growing hotel market in the Wyboston area, and

evidence of frequent shortages of hotel accommodation in this part of the

Borough. The expected continued growth in hotel demand shows potential for

hotel development in terms of:

• Bedroom extensions onto existing hotels;

• Some form of hotel accommodation possibly as part of new watersports,

golf or other leisure developments that could come forward in this part

of the Borough.

8.1.8. Our research shows potential for an additional budget hotel at Wyboston. Premier

Inn and Travelodge are already represented here.

8.1.9. There is space available for a new hotel to be developed at Wyboston Lakes. This is

not currently being considered as an option however, but might possibly be at

some point in the future.


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8.2. Implications for Planning Policy

Reinforcing the Locational Strategy for Hotel Development in Bedford

8.2.1 National planning policy recognises hotels as a town centre use, and encouraging

hotels in town centres can help improve the evening economy and town centre

vitality. Bedford will see the development of a new town centre budget hotel with

Premier Inn going into the Riverside North scheme. If suitable historic/characterful

buildings could be found, there is interest from boutique hotel companies in

locating in the town centre close to the river/Embankment. However, to support

greater levels of town centre hotel development, significant new drivers of demand

in terms of office schemes need to come forward. To date these schemes have

fallen by the wayside, making the likelihood of their delivery longer term.

8.2.2 In Bedford’s case, a lot of the drivers of growth in hotel demand are outside the

town centre, particularly in terms of business park development along the A421.

Market feedback tells us that many business-related visitors will want to stay close to

their place of business. Hotels have become an important part of many business

park developments and can help make them more attractive locations for

companies to locate. Some hotel business models have been developed around

the demand that emanates from such locations, offering leisure and extensive

food, drink and function/conference capacity, and as a result have a footprint and

land-take that cannot be accommodated in a town centre.

8.2.3 From a market perspective it is thus important to recognise the potential for hotel

development in Bedford town centre and out-of-town locations on, or close to

existing and new business parks, with the town centre accommodating budget and

boutique hotels and serviced apartments, and business park/out of town locations

likely to attract upper-tier budget and/or 3 star hotels. This locational strategy for

future hotel development is reflected in the Allocations and Designations Local Plan

and should be taken forward in the Local Plan 2032.

8.2.4 Clearly, should the Borough Council's spatial strategy change radically from its

current trajectory, there may be a requirement to review how hotel development

requirements might be affected. As it stands at present however there are

significant business park allocations and developments likely to come forward in the

next 10 years to support the current locational strategy for hotel development in

and around the town.


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The Need to Allocate Hotel Sites for Bedford

8.2.5 With hotel development in Bedford town centre expected to come forward as part

of mixed-use schemes, the Allocations and Designations Local Plan does not

allocate any sites for stand-alone hotels in the town centre. Our research indicates

potential for 1 or 2 4 or 5 star boutique hotels in the town centre, the Premier Inn

planned for the Riverside North scheme and possibly another budget hotel. We

would agree that a further budget hotel is most likely to come forward as part of a

mixed use/regeneration scheme e.g. the Station Quarter, and that there is no need

therefore to allocate a specific site for such a hotel. It has proved more difficult to

identify heritage buildings for boutique hotel conversion. 6/7a St Paul’s Square is the

only building that the Borough Council has suggested as a possibility. At the

present time the future of these buildings is not clear, and we do not know whether

they would be suitable for conversion to a boutique hotel or if they would attract

interest from a hotel or development company for such a use. If after further

investigation these buildings have clear potential for conversion to a boutique

hotel, allocation for such a use might be something to consider.

8.2.6 When it comes to hotel development in out-of-town locations:

• The Allocations and Designations Local Plan identifies four allocated

development sites where a hotel use would be supported - Medbury Farm,

Apex Business Park, land north of the A6-A428 Link Road, and the Bedford

River Valley Park, where a hotel and conference centre is identified as an

enabling development use. Planning applications for hotels will be

considered on other sites but will require a sequential test assessment to be

submitted with the application.


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• The four allocated sites would more than meet the projected requirements

for out-of-town hotel development but are not necessarily the strongest

hotel sites around the town and may not see hotel development coming

forward:

o Medbury Farm is a strong site, given the planned business park here,

identified as a short to medium term opportunity in the Council’s

Strategic Sites brochure.

o Apex Business Park is a good site immediately available but so too

are Bell Farm (Bedford Connect) and the Marston Vale Innovation

Park1 depending on how the business parks develop here and the

types of companies and business uses that they attract. They both

have the appeal of exposure to the A421, the potential to pick up

transient business, and access to other expanding demand drivers

e.g. Millbrook Technology Park and The Wixams.

o We think the potential at Bedford River Valley Park is more about a

small number of hotel bedrooms linked to a watersports centre or

activity hub rather than a large conference style hotel.

o The land to the north of the A6-A428 Link Road could be of interest

for a 3 or 4 star hotel with leisure drawing on the local community, or

alternatively a small budget hotel alongside a new-build pub

restaurant to cater for local corporate demand in this part of the

town and business from Colworth Science Park and the other

business parks in Rural North Bedford. The Anglers Rest site on

Clapham Road that has been put forward under the latest 'call for

sites' would be equally attractive for a small budget/pub restaurant

development.

1 Hotel use here has not been identified in the Allocations & Designations Local Plan

although key principles in the Local Plan 2002 Policy H11 encouraged “employment uses

including leisure based employment”)


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• We have some concerns therefore that the currently allocated out-of-

town hotel sites are not necessarily the strongest sites and may not be

deliverable in terms of hotel development. This could deter hotel

proposals coming forward on other sites that are as strong, if not

stronger. It would be preferable we would suggest to have a more

flexible policy approach that identifies the A421 corridor as the priority

location for out-of-town hotel development without allocating any

specific hotel sites. This is something that the Council should consider as

part of the Local Plan 2032.

Hotel Development in Other Parts of the Borough

8.2.7. The market work has identified potential for hotel development in Rural North

Bedford and Wyboston. This might be met by the expansion of existing hotels or by:

o Country house properties being converted into hotels, from small and

exclusive 10 bedroom properties through to more significant developments

with a full range of leisure and banqueting facilities, depending upon the

nature of the property and the location. This may require an element of

new-build development to achieve a viable scheme.

o Hotels or hotel bedrooms being developed on golf courses.

o Existing or new activity or watersports centres adding hotel

accommodation. Depending upon the target market this might vary from

limited service rooms to something of higher quality to serve corporate

demand.

8.2.8. There could also be potential for the development of a major golf resort in the

Borough, given a suitable site, and possible scope for a new hotel to be developed

in the Wyboston area.

8.2.9. We would recommend that these opportunities for hotel development in other

parts of the Borough should be recognised in the new Local Plan 2032, with a policy

wording that would allow positive consideration of proposals for such hotels,

provided that they can meet other planning policy objectives.


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Retaining Hotel Uses

8.2.10 The Borough has seen the closure of two hotels for conversion to student

accommodation and residential flats since the last Hotel Futures study. There is also

evidence however of hotels upgrading and investing in improving their offer. The

new Premier Inn at Riverside North could take business away from poorer quality

and less well-located hotels in the town that might as a result want to exit the

market. As long as the overall level of hotel supply is not threatened by this and

there is no loss of significant hotels that would be difficult to replace and for which

there is clear market appeal, then some loss of hotel bedrooms will always be part

of the natural cycle of demand and supply in the hotel sector. On balance

therefore we see no clear need for a hotel retention policy to be included in the

new Local Plan 2032. Some thought may need to be given to how distinctive hotel

properties, e.g. The Bedford Swan, that would be hard to replace might be

retained, and whether other retention policies, e.g. for employment uses might

protect their loss.

Supporting the Development of Existing Hotels

8.2.11 Supporting the development of existing hotels will be an important part of the

strategy going forward to ensure that Bedford has the range, quality and capacity

of hotels required to meet future business and leisure market needs. This includes a

framework that will allow for the expansion, further development and upgrading of

existing hotels in terms of additional bedrooms and/or the development of spa,

leisure and/or function facilities, to enhance appeal to new markets, generate new

income streams and help underpin long term business viability.


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8.2.12 In some cases, the borough should consider the merits of allowing enabling

development where it is considered there is a particular justification for additional

accommodation in the location, as small hotels often do not generate sufficient

levels of profit to allow investment at a level that will make the step change

needed to successfully upgrade, develop or reposition a hotel to a different type or

standard of offer. This could be in terms of housing development, as proposed as

part of the expansion plans for the Woodlands Manor Hotel that have been put

forward under the latest 'call for sites', or the sale and conversion to an alternative

use of part of a hotel to allow investment in the remaining hotel property, as has

happened recently with the De Parys Hotel. The type and scale of any enabling

development must be acceptable in the location proposed and scheme

promoters would need to be prepared to provide open book viability information

where this is required to justify its need.

A Streamlined Planning Process without Onerous Conditions

8.2.13 It is gratifying to see that Bedford Borough Council is not intending to introduce a

CIL charge on hotel development, as in some parts of the country this is having a

significant impact on the deliverability of hotel schemes. However, other conditions

e.g. to do with design, environmental credentials such as BREEAM and Green Travel

Plans, can add a significant burden to the cost of a hotel scheme and can have

the same impact on project viability. Careful consideration needs to be given

when applying such conditions to a hotel scheme in terms of the impact they might

have on viability.

Reflecting the Market Potential

8.2.14 Development management policies and the supporting text that goes with them

need to reflect the market potential identified in this report. Current development

management policies date back to 2002 and refer to perceived gaps in the market

such as 4 and 5 star hotels that are out of kilter with the market potential for

Bedford. Spelling out the key findings of the study in terms of hotel development

potential will give clear direction to potentially interested hotel developers of where

the needs in the market are, not just in terms of location but also as regards the

scale, nature and standard of hotel that can best meet current and potential future

market requirements as well as help deliver wider destination objectives.


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8.3. Other Requirements for Borough Council Intervention

Hotel Investment Marketing

8.3.1 There could be a case for some pro-active work in terms of hotel investment

marketing for Bedford, given the potential interest from hotel companies contacted

as part of the hotel developer testing work, and their relatively limited knowledge of

the Bedford hotel market and its future growth potential. This could also be an

opportunity to get feedback on specific sites and to move the boutique hotel

opportunity in the town centre. A programme of work could include:

• The preparation of hotel investment marketing materials, drawing on the

information contained in the Hotel Futures Study as a starting point;

• Direct approaches to the hotel companies that expressed interest in

Bedford as part of our developer testing work and other target hotel

brands that could have good fit with the market potential identified for

Bedford;

• A series of one to one familiarisation visits for interested hotel operators and

developers;

• PR activity to help build Bedford’s image as a hotel investment location,

possibly using the Hotel Futures Study and the potential for hotel

development that it identifies as a launch pad.

Building Leisure Demand - An Events-Led Strategy

8.3.2 Weekends are a challenge for some of Bedford’s hotels, particularly those that do

not have the facilities or setting to attract weddings and/or leisure break business.

Action to boost the leisure market to help fill rooms at weekends at reasonable

rates, particularly Fridays and Sundays, would help boost overall levels of hotel

performance and viability. An events-led strategy would seem to offer the greatest

potential to do this, combining more proactive promotion of existing events with the

development and attraction of new events and festivals with the pulling power to

attract overnight stays, particularly outside the main summer season. This could

include further watersports competitions and events, other sporting events, and

new arts and cultural festivals.


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Major Attraction Development

8.3.3 Major attractions have the ability to draw visitors from a considerable distance and

can therefore generate the need for an overnight stay as well as the potential to

package attraction entrance with hotels. NIRAH was such a proposal, but is now

not going ahead. Given the potential for the development of a major visitor

attraction in the Borough to boost the hotel market, particularly at times when there

is less demand from business visitors, promotion and support for similar opportunities

to be delivered should be encouraged.

Maximising the Potential of the Corporate Activities Cluster

8.3.4 Bedford has a strong cluster of corporate activities venues that appear to have the

capacity and potential to expand their market further. Some collective marketing

of these venues with the Borough's hotels targeted at the incentive travel, team-

building and corporate activities markets could generate additional hotel demand

both during the week and potentially also at weekends. Borough Council support

and funding would be useful to help kick-start such marketing collaboration.

Conference Marketing

8.3.5. Some of the hotel managers that we spoke to felt that it would be helpful for the

Borough Council to support Bedford's hotel sector through more proactive

marketing of Bedford as a conference destination. We would suggest however that

the town does not have a sufficient critical mass of hotels with conference facilities

and midweek bedroom availability to justify such an approach. Conference

marketing should more appropriately be left to those hotels that actively want to

target this market.


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Monitoring Hotel Development & Performance

8.3.6 Keeping a handle on how the hotel market is performing and what is coming on

stream in terms of new hotels and proposals will be important going forward, both

to ensure that future decision-making is based upon live market intelligence so that

priorities can be adjusted as required. In terms of hotel performance, we would

suggest a periodic review of the Hotel Futures Study to ensure an in depth

understanding of the Borough's hotel market and how it is changing. This could be

complemented by accessing hotel performance data for Bedford from STR Global,

depending on the sample of hotels in the town that participate in the company's

survey. We would not recommend the setting up of a hotel performance

monitoring survey by the Borough Council, which we think would be too costly and

time-consuming to run. Monitoring of hotel development activity and proposals

might be best achieved through the planning system on an on-going basis, though

it will be important to allocate responsibility and resource to do this.


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APPENDICES


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APPENDIX 1

NPPG - TOURISM PLANNING GUIDANCE (From March 2014)

_______________________________________________________

The Department for Communities and Local Government is responsible for

national planning policy and guidance. Guidance on ensuring the vitality of town

centres includes reference to tourism.

Ensuring the vitality of town centres

Paragraph: 007 Reference ID: 2b-007-20140306

• What should local planning authorities consider when planning for

tourism?

Please see here for the World Tourism Organisation’s definition of tourism.

Tourism is extremely diverse and covers all activities of visitors . Local planning

authorities, where appropriate, should articulate a vision for tourism in the Local

Plan, including identifying optimal locations for tourism. When planning for

tourism, local planning authorities should:

• consider the specific needs of the tourist industry, including particular

locational or operational requirements;

• engage with representatives of the tourism industry;

• examine the broader social, economic, and environmental impacts of

tourism;

• analyse the opportunities for tourism to support local services, vibrancy

and enhance the built environment; and

• have regard to non-planning guidance produced by other Government

Departments.

Local planning authorities may also want to consider guidance and best practice

produced by the tourism sector. Further guidance on tourism can be found on

the Visit England website.

Revision date: 06 03 2014

See overleaf for VisitEngland guidance.


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Tourism Sector Tourism Planning Guidance1

1. How should tourism developers maximise the economic benefits of

tourism for their areas?

Where appropriate key players in the tourism industry should seek a

constructive dialogue with local planning authorities and involve those who have

a role in delivery of tourism schemes and programmes. This will help to ensure

that applications are developed with the benefit of a realistic and sustainable

commercial perspective, and accord with planning policy.

The Local Plan’s approach to tourism will need to be based upon a robust

understanding of business needs within the tourism industry including a

quantitative and qualitative assessment of future tourist accommodation,

including hotels and holiday parks, visitor attractions, and supporting facilities,

including concert, conference and exhibition space, theatres, museums, cafes,

restaurants, pubs, nightclubs and sporting facilities as may be appropriate to

the area and any strategy for tourism growth.

There may be circumstances where a traditional market has changed and the

local tourism provision needs to restructure; in some areas long standing

changes in visitor numbers may have left a considerable surplus of hotel, guest

house, pub and bed & breakfast accommodation. This can leave many

businesses struggling on very low turnover, unable to reinvest in improving their

facilities. In such circumstances, owners and developers will need to work

collaboratively with local planning authorities and others to provide where

appropriate a productive alternative use for premises.

With declining income from beer sales, many pubs are increasingly dependent

upon their food offer. This may lead to proposals to expand the kitchen, install

flues, increase the number of covers through extensions, provide additional

parking and enhanced garden areas. Some pubs may also look to provide bed &

breakfast accommodation to support the continued pub use. Applications to

adapt premises need to be mindful of adverse impacts on the appearance of

what are often important historic and cultural buildings to the local community.

Even with the proper stakeholder involvement and thorough research, it will not

be possible to predict and forecast all potential tourism growth opportunities.

2. How should tourism uses be accommodated in urban areas?

There are many types of tourist and leisure activities that particularly lend

themselves to cities and major urban locations. The NPPF sets out the

sequential test for main town centre uses that are not in an existing centre and

are not in accordance with the Local Plan.

1 Source VisitEngland corporate website


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3. How should tourism be accommodated in rural areas?

Paragraph 28 of the NPPF supports sustainable rural tourism and leisure

development as part of a prosperous rural economy.

In rural areas it may not always be possible to provide for all types and size of

tourist facility within the tightly drawn boundaries of market towns and villages.

Neither will it always be appropriate for a tourism facility to be located within a

settlement. In rural areas the market for a rural tourism facility may often be in

attractive countryside locations designated to protect their landscape beauty

which may be distant from main service settlements.

4. What are the key locational considerations in choosing the best site

for tourism development?

In order to be commercially successful, tourism sites must be accessible to their

target market for visitors. New tourism developments should, where

reasonable, facilitate the use of sustainable modes of transport.

Many small scale rural tourism developments are car dependent and the use of

the car does not by default make the proposal unsustainable. Encouraging

greater domestic tourism has the potential to support jobs and facilities in rural

areas reducing out-commuting from those areas.

Many accommodation businesses of all types want to be located where

customers can easily reach them by car, and the NPPF recognises that different

policies and measures will be required in different communities and

opportunities to maximise sustainable transport solutions will vary from urban

and rural areas.

5. How can tourist accommodation be maintained as a tourism use?

As tourism is an all-year business, conditions restricting tourist accommodation

to seasonal use should only be used where it is clear that the condition can be

justified as being necessary, and meeting the other tests for lawful conditions

laid out in paragraph 206 of the NPPF.

In locations where residential development would not be appropriate, local

planning authorities may attach conditions to planning permissions for tourist

accommodation to ensure that they are used for holiday purposes only. Where

circumstances change, developers may wish to negotiate with their local

planning authority the removal of already imposed conditions.


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6. What about applications for permanent staff accommodation?

For many types of tourist accommodation, an on-site residential managerial

presence is often essential, to deliver quality service to the customer, security

for the property, and to meet the obligations of health and safety regulations.

Accommodation may also be needed for key members of staff. In such cases

there may be applications for conversion of suitable existing buildings at the

site. Where this is not a feasible option, developers may apply to provide new,

on-site accommodation, which should normally be in a form similar to that of

the holiday accommodation of the site. Local planning authorities may wish to

impose conditions to ensure that such accommodation is occupied for this

purpose only. Applicants will need to note the restrictions on such development

in certain sensitive areas, especially the Green Belt.


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APPENDIX 2

BEDFORD BOROUGH - HOTELS INTERVIEWED

Establishment Face-to-

Face/

Telephone Bedford Swan F

The Barns Hotel T

The Embankment F

Park Inn by Radisson Bedford F

Woodlands Manor Hotel F

Holiday Inn Express Bedford F

Premier Inn Bedford Priory Marina T

Premier Inn Bedford South (A421) T

Travelodge Bedford F

Travelodge Bedford Goldington Road T

The Sharnbrook Hotel F

Mill House Hotel, Sharnbrook F

Queen's Head Hotel, Milton Ernest T

Wyboston Lakes Hotel F

Travelodge Bedford Wyboston T

Premier Inn St Neots (A1/ Wyboston) F

Premier Inn St Neots (Colmworth Park) F


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APPENDIX 3

BEDFORD TOWN

PROJECTED FUTURE HOTEL DEVELOPMENT REQUIREMENTS – 2019-2032 ______________________________________________________________________________________

Methodology Used for the Projections

In order to provide an indication of the number of new hotel bedrooms that might be

needed in Bedford Town through to 2032, Hotel Solutions has prepared projections of

possible future growth in hotel demand in the town to 2019, 2024, 2029 and 2032.

Projections have been prepared for 4 star/boutique hotels and budget/3 star hotels taking

the current supply of hotels in and around the town and 2014 roomnight demand as the

baselines for the projections. Our 2014 survey of hotel managers shows very little difference

in achieved room rate performance between Bedford's budget and 3 star hotels, while 4

star and boutique hotels in the town trade at higher room rates. We have therefore

prepared projections for these two categories of hotel. 2014 was a very strong year for

Bedford hotels as a result of the Warner Bros filming at Cardington Studios during the

summer. The new owners of the studios are confident about attracting at least one major

film production to the site per year. Assuming that they can achieve this it thus makes

sense to take 2014 as the baseline year for the hotel demand projections. The projections

assume that growth will be unconstrained by site availability and planning policy.

In projecting future requirements for hotel accommodation we have first calculated an

estimate of current (2014) baseline midweek and weekend roomnight demand for each

standard of hotel, based on the hotel occupancy data that we collected through our

survey of hotel managers. To these figures we have added estimates of the roomnights

that hotels of each standard are currently denying (based on the information provided to

us by hotel managers) to provide an adjusted baseline figure of the true (unconstrained)

roomnight demand for each standard of hotel. We have then applied assumed low,

medium and high growth rates to these adjusted baseline figures to calculate estimated

roomnight demand for each standard of hotel by 2019, 2024, 2029 and 2031.


________________________________________________________________________________________


Using these projections of future hotel demand we have calculated the number of hotel

bedrooms of each standard that our roomnight projections would support, assuming an

average annual room occupancy of 70% for all hotels (the minimum levels of occupancy

that hotel developers and operators usually seek to achieve). Applying these figures to

current numbers of hotel rooms provides figures for the numbers of new hotel bedrooms of

each standard that may be needed in the future if the projected growth in the market

takes place.

Making any sort of market forecasts is an uncertain process: all forecasts are based on

judgement and assumptions, and are susceptible to unforeseen changes. The projections

we have prepared should thus be taken as indicative only. They have been prepared to

provide an illustration of the numbers of new hotel bedrooms that might be needed under

different growth scenarios. They are not intended to be accurate projections of how the

market will grow. Clearly the further ahead that one looks, the more difficult it is to project

growth accurately. Projecting much further ahead than 5 years is very difficult. The

projections to 2024, 2029 and 2032 should thus be treated with some caution and should

be periodically reviewed.

Assumed Growth Rates

a) 4 Star/Boutique Hotels

Midweek Demand

Employment forecasts provide an indicator of local business development and new

companies coming into an area. They provide the best indicator of potential growth in

midweek corporate demand for hotel accommodation therefore. The Borough Council's

latest thinking on employment growth envisages a mid range estimate of 14,000 jobs to be

created by 2032. Compared to a 2012 baseline of 76,900 jobs in the Borough this equates

to an 18.2% increase, equivalent to an average annual growth rate of 0.91%. Work is still

ongoing on population and employment growth projections and the Borough Council has

indicated a possible range for job creation of 4,000 either side of the 14,000 figure. It is

appropriate therefore to consider low, medium and high growth scenarios for growth in

hotel demand in line with this range.


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The target sectors of high performance technology, advanced manufacturing and

engineering, life sciences and biotechnology, low carbon technologies, finance and

business services and film, digital, media and design, could all be productive in terms of

demand for hotel accommodation, particularly if national and international companies

can be attracted to the new business park developments around the town. There could

also be some growth in residential conference business as this market recovers, Bedford's

economy expands, new companies are attracted to the town, and existing and new

hotels target this market more proactively. Growth in midweek demand could thus be

higher than the projected growth in employment.

A lower growth scenario also needs to be considered however in case the planned

business parks and offices do not develop as envisaged or if they attract occupiers that will

have much lower requirements for hotel accommodation e.g. call centres and distribution

companies.

Taking account of these factors, we have assumed the following average annual growth

rates for midweek demand for 4 star/boutique hotel accommodation in the town:

4 STAR/BOUTIQUE HOTELS – BEDFORD TOWN

ASSUMED GROWTH RATES FOR MIDWEEK DEMAND

GROWTH

SCENARIO

AVERAGE ANNUAL

GROWTH RATE 2014-2032

%

Low 0.75

Medium 1.25

High 2

For simplicity’s sake we have based our projections on an average annual growth rate.

Clearly growth in demand will fluctuate from one year to the next. There is insufficient data

to factor in different growth rates per year, however.


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Weekend Demand

Our 2014 research suggests that demand from people attending weddings and functions

will remain the main source of weekend business for the town's 4 star and boutique hotels

for the foreseeable future. Population growth is the best indicator of potential growth in

these markets. Preliminary population growth figures provided by the Borough Council

indicate that the Borough's population could grow to 190,290 - 196,560 by 2032. Against

the 2012 baseline population of 163,400, this equates to growth of between 16.46% and

20.29%, and average annual growth rates of 0.83% to 1.02%. There could also be growth in

weekend leisure demand related to existing and new events and festivals in the town and

surrounding area, as well as scope for growth in weekend break business if hotels develop

spas and leisure facilities or if new boutique hotels (which generally have strong appeal for

weekend breaks)open.

Taking account of these factors we have assumed the following average annual growth

rates for weekend demand for 4 star/boutique hotels through to 2032:

4 STAR/BOUTIQUE HOTELS – BEDFORD TOWN

ASSUMED GROWTH RATES FOR WEEKEND DEMAND

GROWTH

SCENARIO

AVERAGE ANNUAL


%

Low 1

Medium 1.5

High 2


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b) Budget /3 Star Hotels

Midweek Demand

Growth in midweek business and contractor demand for budget/ 3 star hotels is likely to be

stronger than growth in midweek demand for 4 star/boutique hotels due to the significant

growth anticipated in the contractors market as construction projects are progressed.

Average annual growth rates for midweek demand for budget/3 star hotels have thus

been assumed as follows:

BUDGET/3 STAR HOTELS – BEDFORD TOWN

ASSUMED GROWTH RATES FOR MIDWEEK DEMAND

GROWTH

SCENARIO

AVERAGE ANNUAL


%

Low 1.5

Medium 2

High 3

Weekend Demand

We see no reason to assume that weekend demand for budget/ 3 star hotels should not

grow at the same pace as growth in weekend demand for 4 star/boutique hotel

accommodation. Growth in weekend demand should similarly come from an increase in

demand related to weddings and functions as the town's population grows, together with

some potential growth in weekend demand related to events and festivals in and around

the town. We have assumed the following average annual growth rates for weekend

demand for budget/3 star hotels through to 2032:

BUDGET/3 STAR HOTELS – BEDFORD TOWN

ASSUMED GROWTH RATES FOR WEEKEND DEMAND

GROWTH

SCENARIO

AVERAGE ANNUAL


%

Low 1

Medium 1.5

High 2


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Projected Requirements for New Hotel Development

Our projections of future growth in hotel demand in Bedford Town show the following

future requirements for new hotel bedrooms for each standard of hotel through to 2032,

depending on how quickly the markets for hotel accommodation grow.

BEDFORD TOWN

PROJECTED REQUIREMENTS FOR NEW HOTEL DEVELOPMENT – 2019-2032

STANDARD OF

HOTELS/YEAR

PROJECTED NEW ROOMS REQUIRED

LOW

GROWTH

MEDIUM

GROWTH

HIGH

GROWTH

4 Star/Boutique

2019 46 52 60

2024 56 69 87

2029 67 87 117

2032 74 99 136

Budget/3 Star

2019 95 109 133

2024 133 163 215

2029 173 221 309

2032 199 258 372

TOTAL NEW HOTEL ROOMS

2019 141 161 193

2024 189 232 302

2029 240 308 426

2032 273 357 508


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APPENDIX 4

CALL FOR SITES – SITE ASSESSMENTS INCLUDING VISITOR ACCOMMODATION

NAME OF SITE

LOCATION SITE DETAILS

Ownership/Size/

Availability/

Timescale

PROPOSED USE MARKET VIEW/OPPORTUNITY

(Fit with operator requirements/ Market Potential/

Standard & Type of Offer)

HOTEL

Land

adjacent to

the Anglers

Rest

106 Clapham Rd Bedford MK41 7PJ

AWG Landholdings Ltd Available within 5 years (Previous submission

referred to a site

area of 1.3 acres

and 60 bedrooms)

A3 café/restaurant, A5 take-away/drive-thru and C1 hotel

This is a good visible site at the junction of the busy A6 and its intersection with the proposed link road. A destination location in that Sainsburys is already here. Also an established hotel market here with the Travelodge and Woodlands Manor nearby. Other known

generators of demand to the north of the town include Colworth Science Park, Thurleigh Business Park, Bodyflight and PalmerSport. A budget hotel location or pub with rooms.

Land south of

Goldington

Rd

Bedford EF Wootton & Son et al 31.28 ha Agricultural land located opposite Elm Farm Industrial

Estate and junction of Norse Rd with the A4280 Availability 1-5 years

Proposed for mixed-use leisure, retail and commercial development. B1 and B1C, A3/A5, hotel, leisure uses including marina and sports centre.

Hotel of 120 rooms proposed with restaurant, to be sited at the main entrance/roundabout giving access to the site

The A4280 is a busy approach to Bedford from the east. Near to the site are older industrial and business uses such as Elms Farm and an established hotel use in the Travelodge. This site could accommodate a hotel with a larger footprint/ land-take than could be delivered in the town centre whilst still benefitting from closer proximity to

the centre than the A421 sites and to population for leisure club and food and beverage markets. If employment uses are developed as part of the wider scheme these could also generate some hotel roomnight demand. However, not a particularly attractive part of the town and away from the ‘weight’ of new

development happening in the Growth Area to the SW of Bedford.


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NAME OF SITE


Ownership/Size/

Availability/

Timescale




Land north of

A603

Cardington Southill Estate 3 ha

Available 1-5 years

Roadside uses including petrol filling station, roadside

services and 30 room hotel.

Good visible site at a busy junction that could serve both A421 traffic and surrounding uses such as Priory Business

Park. Strong demand also from filming at Cardington Studios. Could also serve River Valley Park as developed. Suitable for budget rooms, though few developers/operators now doing as little as 30 bedrooms.

Woodlands

Manor Hotel

Green Lane Clapham

Woodlands Manor Hotel 2 ha Availability 1-5 years

Mixed use scheme to include 20-40 houses, B1 and education uses and expansion of the hotel to provide a further 20-30 rooms, plus leisure, conference and

weddings event space. Consideration also being given to care accommodation.

An opportunity for expansion of the hotel to be enabled by the development of alternative uses on the site. The additional bedrooms would provide a critical mass to support the central facilities required in a 3 star hotel.

Land at

Medbury

Farm (phase

2)

East Elstow Southill Estate

70 ha Agricultural land with employment planned to the west Availability 11-15 years, following

completion of the planned development to the west

B use employment and hotel This is a longer term opportunity linked to the

development of Medbury Farm as an employment site and its further expansion. A good strategic location generally; the hotel would need easy access and visibility to/from the A421. The principle of hotels locating on business parks is well-established where they are drivers of demand. We understand that it is still proposed that one

hotel would serve the business park, potentially releasing land for B1 development in phase 1 if developed in phase 2.; however this would presumably affect the timing of when the hotel opportunity would become available. A larger amount of employment development on the business park, particularly of B1 office type uses,

would be beneficial to driving hotel demand.


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NAME OF SITE


Ownership/Size/

Availability/

Timescale




Could be suitable for budget, upper tier budget or 3 star. Weekends will be more of a challenge for this type of

location which is less attractive for weddings.

Land at

Wilstead Rd

Elstow MK42 9YU

FCC Environment UK Ltd 11 ha

Agriculture and flooded former clay pits

B1, C1 and C3 This site is a little off-pitch as it does not directly front the A6 or A421. B1 uses could generate some demand for hotel, depending on scale, as could the Wixams business

park development to the south. Might be better suited to a pub/restaurant with rooms that companies like Marstons deliver that would also serve the local residential community, but again profile to a main road would be needed, so a site fronting the A6 or the Wixams roundabout might be better. A lot of work would be

needed to make this an attractive site.

Chimney

Corner Public

House

Ampthill Rd, Kempston Hardwick MK45 3JF

Paul Tait 0.6 ha Available 1-5 years

Proposed for hotel/leisure use, residential, commercial uses (2002 commercial use allocation)

Not a strong hotel location as tucked away and not a particularly attractive environment, including poorer quality industrial/commercial uses, though a small number of rooms could sit here alongside a supporting

use such as a family pub/restaurant.

Land off

Moor End

Lane

Radwell MK43

Bedfordia Group plc 133 ha Availability 1-5 years

Hotel with leisure, recreation, holiday lodges and storage facilities

This would need to be a destination location with sufficient appeal/critical mass to generate business in its own right. Current access poor and would need an access from the A6. Would only see hotel as a minor use

here, possibly a small number of rooms tied into a facilities/bar/restaurant building serving the watersports/recreational uses, similar to Box End Park. Lodges are generally better suited to such destination locations; would require extensive landscaping to create an attractive setting for such a development. Potential

for hotel rooms here to serve the north of Bedford business park & corporate leisure markets.


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NAME OF SITE


Ownership/Size/

Availability/

Timescale




Land east of

Stoke Mill

Mill Rd Coffle End

Sharnbrook MK14 1NP

S Fox 2.4 ha (2 ha

developable) Agricultural & horticulture Availability 1-5 years

Employment (B1, B2), residential (25 homes) and

leisure uses proposed. 0.25 ha of land available adjoining the existing Mill Hotel site could be suitable for its expansion.

Adjacent to the Mill Hotel and Mill Theatre, and close to the A6. Not known if the Mill Hotel has plans to expand,

but if not future operators may. The market work identifies potential for additional rooms north of Bedford and in the rural area, primarily through the expansion of existing properties, so a scheme here would have fit with this. As above, scope to serve the cluster of business

parks north of Bedford and corporate/leisure uses including PalmerSport and Bodyflight.

College Farm Black Cat RoundaboutGreat North

Rd Roxton MK44 3EA

Bedford Borough Council 26.3 ha

Agriculture/mineral extraction Availability 6-10 years

Employment (B1, B2, B8) plus water related development (8 ha) including a marina,

restaurant and chandlery

Hotel use is not specifically identified here at this stage. However, in principle, if an attractive marina/waterside development is created here with restaurant/bar use, the

addition of bedroom accommodation on a small scale to a central hub building could have appeal and help underpin the viability of these facilities. Adjacent employment uses could also generate some demand.

bedford borough hotel futures update

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