Hotel building forges ahead with Liverpool’s growing reputation

Jul 11 2007 by Larry Neild, Liverpool Daily Post

City Editor Larry Neild explores the booming tourism sector and rising accommodation needs

WORK is under way on five hotel projects in Liverpool, including the city’s first Hilton and Novotel hotels.

In the past few years, the number of hotels has grown as Merseyside’s tourism sector continues to grow.

A decade ago choice for visitors to Liverpool – either as tourists or business people – was limited.

The arrival of a number of big-name operators has added to the accommodation providers.

Next year, when Liverpool celebrates its culture accolade, the number of people heading for Merseyside is expected to grow.

There will be times when, even with the hundreds of extra rooms, the city’s hotels will be filled to capacity.

What is important for the tourism sector is to ensure that in the years beyond 2008 the amount of accommodation offered is enough to meet the needs, while also making sure there is not over-capacity.

The success of the hotel sector depends on bed occupancy levels: the number of people using the hotels on a daily basis.

Some observers fear that once the excitement of Liverpool’s European Capital of Culture year fades away, the city could find itself with too many empty hotel rooms.

Economist Peter Stoney from the University of Liverpool is upbeat about the prospects for the hotel and catering industry.

“I am a great believer in allowing market forces to determine the level of hotels we have in Liverpool and Merseyside,” he said.

“If people want to invest here, we should welcome them. The only caveat would be where hotel schemes receive a level of public funding, such as grants from Europe.

“If there were problems for those establishments it would be seen as money down the drain.”

Optimists insist that Liverpool’s emerging reputation as a short-break destination for Europeans will ensure the hotel economy remains strong. Events at the new arena and convention centre at Kings Dock will also ensure a constant demand.

The arena already has a respectable level of bookings, and once people see the finished product, the popularity of the new facility is expected to substantially increase.

Princes Dock, derelict for years, is now home to two hotels, the Crowne Plaza and the Malmaison, with aims to build another major hotel on the key plot overlooking the Pier Head.

The Radisson SAS has breathed new activity into the business quarter, while work is racing ahead on the new Hilton near the Strand. That will occupy a crescent-shaped building, inspired by the Royal Crescent at Bath, on a site within the Grosvenor Paradise project. A second hotel, for Novotel, is being built in Hanover Street as part of the £1bn Grosvenor scheme.

Permission has just been given to Irish developers Chieftain to build a luxury hotel alongside Lime Street station in Skelhorne Street.

The Beatles-themed hotel in North John Street and a five-star boutique hotel in Sir Thomas Street are taking shape.

The growth of the boutique hotel sector has proved to be a huge success, with the first in Hope Street – with its London Carriageworks Restaurant – gathering a clutch of awards.

Down at Kings Dock, alongside the new arena and convention centre, two new hotels are being built.

A new Holiday Inn recently opened close to Liverpool John Lennon Airport, with plans for a second airport hotel opposite the main terminal.

The activity has forced some of the existing hotels to carry out expensive refurbishment and renovation projects in order to compete. One of the biggest schemes will see the transformation of the Britannia Adelphi in Lime Street.

For the past five years, tourism levels in Merseyside have continued to set new records.

Liverpool is the key economic driver for tourism, attracting well over a third of visitors, followed by Sefton and then Wirral.

Figures compiled by The Mersey Partnership chart the growth of the hotel sector in the area.

In 1998 there were 16 city centre hotels, providing 1,867 bedrooms.

By the end of this year the number will be 31 hotels, and almost 3,000 rooms. By the end of 2010, it is predicted there will be 42 city centre hotels, with 5,000 rooms.

Hotel growth in Sefton, St Helens, Knowsley, Wirral and Halton will grow modestly between now and 2010.

In 1998 there were 104 hotels within the boundaries of Liverpool’s five neighbours, providing 2,852 beds.

By the end of this year the number will stand at 111, taking the number of beds to 3,294. By 2010 the number will climb by just six, taking the room count to 3,865.

Most of the extra space will be taken up in St Helens and Sefton. But the figures demonstrate the emerging success of Liverpool as a tourist city.

On top of the 5,000 city centre beds likely by 2010, there will be another 722 provided in 12 suburban hotels.

larryneild@dailypost.co.uk