One Blackfriars - Planning Statement FINAL VERSION - Southwark ...

CBRE | ST GEORGE SOUTH LONDON LTD8.0 Planning Policy Assessmentmarket, such an operation would seek to cater for senior executives and high profilebusiness representatives.8.20 Hotel Room rates would be high, limiting the affordability of the Implemented 261bedroom hotel and making it less likely to attract tourist and mid level businesstravellers who are likely to spend more time and money in the local area. It isenvisaged that guests would only spend a small amount of time in the local area inSouthwark, which would limit spending in the Site’s vicinity and borough.8.21 CBRE Hotels’ research among hotel groups operating in this market shows that theirpreferred location is Mayfair and Knightsbridge and that other locations areconsidered to be secondary. Attracting luxury hotels outside these areas would beextremely challenging.8.22 In addition, since the grant of the Implemented Permission a number of additionalLuxury hotels have been opened in the locations identified above, further increasingthe competition for this type of hotel and the difficulty in attracting a luxury hotel tothis location.8.23 The Study also finds that the impact of challenging market conditions iscompounded by the extremely high construction and management costs of includingthe Implemented 261 bedroom hotel within the Tower. This is further exasperated bysignificant operational inefficiencies in the approved floorplans including hotelrooms that are too large and unfeasible ancillary facilities such as a ball room.8.24 It is CBRE Hotel’s opinion that the size of the Implemented 261 bedroom hotel is toolarge and that given the Site’s location would be unlikely to generate demand toreach a viable share of the market and would be unable to support the expectedhigh hotel tariff levels. This would impact on the viability of the ProposedDevelopment. As such the number of potential operators for a luxury hotel in thislocation would be limited.8.25 The CBRE Hotels Study concludes that the type of hotel, construction cost andoperational inefficiencies mean that Implemented 261 bedroom hotel offer withinthe tower is not viable in the current economic climate.Page 26PLANNING POLICY ASSESSMENTThe Proposed 152 Bedroom Hotel8.26 The Applicant proposes an upscale/lifestyle 152 bedroom hotel to be built in thestand alone 6 storey Rennie Street building. It would include publically accessibleactive uses at ground floor level include restaurant and bar facilities and a BusinessCentre.8.27 The CBRE Hotels’ Study advises there is a much stronger market for upscale/lifestylehotels in this location with significant interest from a number of hotel operators. TheApplicant is currently in discussions with a number of interested parties.8.28 The upscale/lifestyle genre distinguishes itself from the more traditional offering byproviding more personalised experience in a contemporary and design orientatedenvironment. Examples of established brands in this sector are W by Starwood andAndaz by Hyatt. Public areas, such as restaurants, bar and lobby are important focuspoints, intended to draw in guests and the public.8.29 Room rates for the upscale/lifestyle hotel market are more affordable than the luxurymarket. The guest profile of this type of hotel can be classified as middle to seniormanager, frequently travelling on business and leisure guests who are interested in