number one portsmouth - savillspdf.savills.com/documents/number one portsmouth.pdf · number one...

NUMBER ONE PORTSMOUTH 8 Surrey Street, Portsmouth, PO1 1JT Substantial Hotel Development Opportunity in Portsmouth’s Commercial City Centre

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Number One Portsmouth 8 Surrey Street, Portsmouth, PO1 1JT

DEVELOPMENT HIGHLIGHTS

Savills has been exclusively appointed to offer for sale a consented hotel development site at 8 Surrey Street, Portsmouth.

- Landmark high-quality regeneration scheme in the heart of this dynamic and vibrant waterfront city

- Site to be sold on freehold basis

- Well located in the heart of Portsmouth’s commercial city centre and in the immediate proximity of Portsmouth & Southsea Railway Station ( fastest journey time to London 1hr 31m )

- Planning has been approved for a 228-bedroom full service hotel of up to 13,190 sqm ( circa 142,000 sqft ) of gross floor space over 16 - 18 storeys

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LOCATIONPortsmouth is a major regional centre in Hampshire on the south coast, 15 miles east of Southampton and 64 miles south west of London, Famous for its 800 year maritime history.

Portsmouth’s historic Naval Dockyard is one of Britain’s leading tourist attractions welcoming over one million visitors a year. It includes Nelson’s flagship, HMS Victory, the world’s first iron warship, HMS Warrior, King Henry VIII’s Mary Rose and the Royal Naval Museum.

Portsmouth is also a thriving seaside holiday resort with a fantastic range of entertainment, cultural and sporting facilities including, South Sea Castle, D-Day Museum and Fratton Park.

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Local Landmarks

1. HMS Victory & Mary Rose Museum

2. Portsmouth Historic Dockyard

3. Spinnaker Tower

4. Gunwharf Quays Shopping Centre

5. Aspex Gallery in Gunwharf Quay

6. University of Portsmouth

7. Portsmouth Guildhall

8. Cascades Shopping Centre

9. HM Naval Base

10. D-Day Museum

11. Southsea Castle

12. Fratton Park

Number One Portsmouth is located in the heart of the Portsmouth’s commercial city centre, opposite to Portsmouth & Southsea mainline railway station, and proximate to the Cascades Shopping Centre

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PLANNINGSite HistoryIn October 2008, a planning application was submitted for a 188 bedroom hotel building (Class C1) covering 11 ,063sqm; it was designed up to 25 storeys high, in addition to t wo basement levels, topped by a spire/helical wind turbine feature, presenting a maximum height of 101m. Ancillar y facilities to the hotel included ground and 20th floor restaurants (c.148 covers), 105sqm health and fitness space at 1st floor level and 359sqm of conference facilities at 2nd floor level. A detached coffee bar ‘pod’ (Class A3) was proposed onto the Station Street frontage accommodated within the landscape strategy to create a welcoming setting to the hotel.

Planning permission was granted, subject to a Section 106 Agreement on 6 Januar y 2009. An application to renew planning permission for the same development (permitted by ref 08/01723/FUL) was granted on 23 December 2011 (ref 1 1/01080/FULR), subject to a Deed of Variation.

Proposed HotelIn July 2013, planning permission was granted for application number 13/00525/FUL:

‘Construction of part 16 -18 storey 228-bedroom hotel (Class C1) of up to 13,190 sqm of gross floor space fronting Station Street ’

The designs submitted to the planning authorit y provide for a ground floor featuring a café bar and reception at the front of the building, with back of house areas at the rear. The first floor provides a mezzanine to the reception and room that can be either meeting rooms or accessible guest bedrooms.The Hotel’s main bedroom stock will occupy the first to fif teenth floors.

A Communit y Infrastructure Lev y (CIL) to Portsmouth Cit y Council is l iable to be paid on commencement of development. The CIL relating to the current planning permission is £650,981 .65 (as of the 9th April 2014).

The subject premises are not l isted as a building of architectural importance nor are they situated in a conser vation area.


Site OverviewThe site has an area of approximately 900sqm and is currently occupied by a part-demolished four-storey building, with additional basement level, covering a floor space of approximately 3,096sqm. The site has been vacant since Januar y 2005 and was last used by the Post Office. The building covers most of the site although there are some small areas of hard-landscaping on the northern, southern and eastern frontages.

The site l ies bet ween the civic (Guildhall Square) area and Commercial Road principal retail area, immediately north of the listed Victorian Portsmouth & Southsea railway station and near a transport interchange for taxis and buses. Other nearby buildings and uses around the site include Zurich House and Victoria Park (historic park), mixed retail developments on Commercial Road and Debenhams department store.

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NOTE:- Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. © Crown copyright licence number 100024244 Savills (UK) Ltd. NOTE:- Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed.

PROPOSED FLOOR PLANS

Floor Use

Ground Floor Lobby, Café Bar, Back-of-house

First Floor 4 x Meeting room / DDA, 2 x Meeting room / 1 - bedroom

Second Floor 13 x 1-bedroom, 1 x 2-bedroom

Third Floor 9 x 1-bedroom, 1 x 2-bedroom, 6 x DDA

Fourth Floor 12 x 1-bedroom, 1 x 2-bedroom, 3 x DDA

Fifth – Fifteenth Floors 15 x 1-bedroom, 1 x 2-bedroom

Sixteenth Floor Plant

N.B. It should be noted that the application was prepared for an extended stay apart-hotel concept.

Ground Floor Plan First Floor (Typical) Plan

Cafe/ Bar/ Reception

Back of House/ Support Area

Plant and Services

DDA Room

1 bed Guest Room

2 bed Guest Room

Circulation

The ground floor of the building will contain the

public functions of reception, bar/restaurant. The

building will be entered via a new plaza on Station

Street and will project active frontage to both

Station Street and Surrey Street. The entrance

to the building will form a contemporary ‘portico’

which is of a suitable scale and form for a building

of the proposed height and massing

Service areas such as the mechanical and

electrical plant room that are necessary in the

ground floor layout have been minimised and

pushed to one corner of the floor plan so as to

maximise the connection between the Hotel and

its immediate context.

The building will be serviced from the existing

service lane to the rear of the site and from the

northern end of Surrey Street.

The first floor provides a mezzanine to the

reception and public bar area below creating

a voluminous space in the entrance lobby and

adding visual interest to the active frontages on

Station Street and Surrey Street.

The adaptable meeting rooms to guest rooms are

also located on this floor to give efficient access to

short term guests, wheelchair users and attendees

of meetings. A break out space with seating for

informal meetings will activate the mezzanine level

and create a well used space that responds to the

active frontage of Station Street.



Plant and Services

DDA Room

1 bed Guest Room

2 bed Guest Room

Circulation

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8 Surrey Street, Portsmouth 8 Surrey Street, Portsmouth

Layouts Layouts

Second Floor Plan Fifth Floor (Typical) Plan



Plant and Services

DDA Room

1 bed Guest Room

2 bed Guest Room

Circulation



Plant and Services

DDA Room

1 bed Guest Room

2 bed Guest Room

Circulation

The location of the DDA rooms in the scheme are

as close to the ground floor as the plan would

allow. This improves access for wheelchair users

and encourages their use of the hotel and hotel

facilities. A mixture of guest room typologies on all

floors caters for the wide range of potential guests.

The upper floors of the building are planned to be

rational, functional and efficient. This is a critical

requirement of the brief.

The building plan has been expressed with a north

and south ‘split’ with natural light penetrating the

common area on all floors.

The core is completely embedded in the centre of

the plan and the entire facade will contain guest

rooms - thus maximising the opportunity for

architectural expression and optimising the use of

daylight and views.

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8 Surrey Street, Portsmouth 8 Surrey Street, Portsmouth

Layouts LayoutsNumber One Portsmouth 8 Surrey Street, Portsmouth, PO1 1JT

Cafe / Bar / Reception

Back of House / Support Area

Plant & Services

DDA Room

1 Bed Guest Room

2 Bed Guest Room

Circulation

Ground Floor Plan Typical Upper Floor Plan

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PORTSMOUTH HOTEL MARKET


The Potential for Growth in Hotel DemandAccording to Portsmouth City Council, indicators point to growth in demand for hotel accommodation in Portsmouth include:

• Corporatedemandissettoincreaseasthecity’seconomyexpandsandofficeandbusinessparkschemes are progressed and occupied

• TheportwillcontinuetobethecentreofBAESystems’shipsupportandmaintenancebusinessandthe Royal Navy’s surface fleet. The MoD announced plans in November 2013 to invest £100m in the expansion of the naval base to cope with the new larger aircraft carriers and warships that will be based at Portsmouth

• Theplannedmajorconstructionprojectsinthecitywillgeneratesubstantialdemandforhotelaccommodation

• Therearegoodprospectsforcontinuedgrowthinleisurebreakdemandgiventhecity’sdevelopingvisitor offer

• CruiseshiptrafficthroughPortsmouthisforecasttoincreasesignificantly

• PortsmouthUniversity,locatedincloseproximitytotheHotelsite,hasapproximately4,000overseasstudents which is forecast to increase over the next few years

• PortsmouthwillcapitaliseontheforecastgrowthinoverseastourismtoBritain

• DemandfromferrypassengerswillincreaseasinternationaltravelthroughPortsmouthgrows

Hotel Development OpportunitiesAccording to Portsmouth City Council, the current strength of hotel demand in Portsmouth and prospects for future growth in the city’s key hotel markets, point to opportunities for new hotel development in terms of:

• Aninternational4starbrand-tomeettheneedsofthecorporatemarketandtocapitaliseonPortsmouth’s profile as a leisure and business tourism destination

• Boutiquehotels-todevelopthecity’shoteloffertoaccommodatenewleisuredemand

• Furtherbudget/limitedservicehotelprovision-tomeetcurrentlyunsatisfieddemandatthislevelinthe market

• Apart-hotelsandservicedapartments–tocaterfortheextendedstaycorporatemarket.

Hotel DemandThe hotel market in Portsmouth is an extremely attractive one, with year-round demand from both leisure and corporate visitors. Hotel occupancy is strong with average occupancy consistently above 75% for the last four years with particularly strong demand during the summer months, when occupancy frequently exceeds 90%

Average Daily Rate (ADR) is strong due to the mix of business being split fairly evenly between corporate and leisure visitation. Corporate demand allows Portsmouth to charge competitive rates on weekdays and outside the peak leisure months of June, July, August and September, with leisure demand driving rates at weekends and during the summer months. According to STR, ADR has increased at a compound annual growth rate of 4% over the past four years.

According to STR, Portsmouth was ranked fourth of all markets in the UK for occupancy, and 11th for RevPAR in 2013 demonstrating the strong underlying fundamentals to the Portsmouth hotel market. Key performance indicators for the Portsmouth hotel market are shown below:

Occupancy ADR RevPAR

2012 2013 2014 2012 2013 2014 2012 2013 2014

Portsmouth Hotels 78.7% 82.1% 81.3% £69.20 £71.34 £74.85 £54.46 £58.58 £60.82

Regional UK 69.8% 72.7% 75.4% £59.30 £60.06 £64.03 £41.40 £43.66 £48.27

Hotel SupplyPortsmouth is currently served by a total of 37 hotels providing 1,953 bedrooms split between Portsmouth and Southsea. The market is predominately comprised of independent budget and limited-service hotels, which account for over 80% of the total hotel stock, with few four-star or serviced apartment offerings in the city.

Within two miles of the site, supply is reflective of the broader Portsmouth hotel market with a number of independent, budget and limited-service hotels of which the majority are located around Gunwharf Quays and Southsea. There is currently one four-star hotel and two serviced apartments offering just 26 bedrooms between them.

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Important Notice

Savills, their clients and any joint agents give notice that:

1 . They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.

2. Any areas, measurements, rental information or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

TENUREThe vendor proposes to sell the freehold interest in the site.

DATAROOMFurther detailed information is available at the project website:

www.savills.com/numberoneportsmouth

PROCESSOn behalf of the Vendor we anticipate inviting interested parties to submit first round offers on Wednesday 23rd October 2015 at midday. We reserve the right to amend the timing and structure of any bid process as appropriate.

CONTACTSFor further information of the sale please contact the sole letting agents.

Gary Witham Oliver Armitstead Director Associate 020 7409 9902 020 7409 9919 [email protected] [email protected]

NUMBER ONE PORTSMOUTH 8 Surrey Street, Portsmouth, PO1 1JT Substantial Hotel Development Opportunity in Portsmouth’s Commercial City Centre

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www.savills.com/numberoneportsmouth

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