Kent — Sevenoaks

3/4 Star Hotel Performance

The performance of 3/4 star hotels in the Sevenoaks area is mixed, with occupancy ranging from 50%-75%, dependent upon location, size, quality and marketing effectiveness. Generally hotels in the surrounding area have out-performed those in Sevenoaks and Brands Hatch, and have higher levels of denials (up to 20 rooms per night mid week).

Average Annual Room Occupancy: 3/4 Star Hotels Sevenoaks and Surrounding Area — 2002-2004
Year Average Annual Room Occupancy %
Sevenoaks District 3/4 Star Hotels Branded 3/4 Star Hotels Surrounding Area2 UK Average Provincial 3/4 Star Chain Hotels
2002 54 66.5 70.2
2003 54 71 70.4
20044 56 71 71.5

Achieved room rates show little variation between 3 star and 4 star hotels in Sevenoaks and Brands Hatch, and again hotels in the surrounding area generally achieve higher average rates, ranging from £55 to £66.

Average Annual Achieved Room Rate 3/4 Star Hotels Sevenoaks and Surrounding Area — 2002-2004
Year Average Annual Achieved Room Rate £
Sevenoaks District 3/4 Star Hotels Branded 3/4 Star Hotels Surrounding Area2 UK Average Provincial 3/4 Star Chain Hotels
2002 57 59 62.50
2003 55 57 61.80
20044 55 61.50 63.00

In terms of patterns of demand, weekday occupancies average 65% in Sevenoaks/Brands Hatch, but nearer 80% in the surrounding area. Both areas have strong Saturday night occupancies but weaker Fridays and Sundays.

The market mix for 3/4 star hotels in Sevenoaks and the surrounding area is dominated by business use (61-67%) Local corporate demand is the key market, with residential conference s a secondary market during the week. Leisure break demand is an important market for 3 and 4 star hotels here particularly branded hotels, as are weddings. Events at Brands Hatch generate significant demand around four times a year. Some hotels also take UK and European group tours.

3/4 Star Hotels — Sevenoaks and Surrounding Area — 2003 Market Mix
Market Segment Market Mix %
Sevenoaks District 3/4 Star Hotels Branded 3/4 Star Hotels Surrounding Area
Business — Rack Rate 5 3
Corporate (discounted) 50 47
Residential Conferences 6 14
Leisure Breaks 12 22
Group Tours 9 8
Weddings / Functions 17 3
Other 1 3
100 100

Budget Hotels

Budget hotels in and around Sevenoaks perform strongly, with an estimated average annual occupancy of 85% - individually some hotels perform at over 90%. Average annual achieved room rates in these hotels in 2004 was around £43.50; some hotels demand a higher than average rate, most notably the Premier Travel Inn at Clacket Lane services.

Sevenoaks and Surrounds — Budget Hotel Performance — 2004
Average Annual Room Occupancy % Average Annual Achieved Room Rate £
2004 85 43.50

Budget hotels in and around Sevenoaks are usually full Monday to Thursday and also have very high Saturday night occupancies, particularly during the summer. Fridays are also strong during the summer. The only seasonal dimension to demand is the boost in weekend occupancy during the summer — weekdays are strong all year. Budget hotels are turning business away midweek, up to 10-15 rooms per night plus those denied centrally.

Business visitors and contractors working on local projects are the primary source of weekday business for budget hotels around Sevenoaks. Weekend markets include visitors to local weddings, UK holidaymakers en route to Gatwick, visitors to events at Brands Hatch, and visits to friends and relatives.

Country Inns

Inns in and around Sevenoaks are achieving average annual occupancies of around 70%, with a good mix of business from local companies during the week and weddings at weekends, plus some leisure breaks. Average annual room rates are between £45 and £50.

The Potential For New Hotel Development

Sevenoaks is part of the prosperous West Kent area. The corporate market is likely to continue to grow with the expansion of Fort Halstead and the Leigh Glaxo Smith Kline site, and the attraction of new companies to the BT building and other office sites in Sevenoaks. There is also potential for growth in the residential conference market on the back of this economic growth.

Hotels in the Sevenoaks area attract good leisure break business and there is a wealth of attractions including National Trust properties plus the draw of proximity and access to London. This market is expanding although is increasingly competitive. Group tour business and independent visits from overseas are also forecast to grow.

The performance of existing hotels and the growth in the hotel market in the Sevenoaks area over the next 5 years will generate demand for a range of additional hotel accommodation development including:

Scope for the development of quality accommodation in association with pubs, including gastropubs, in Sevenoaks, surrounding market towns like Westerham and Edenbridge, and the rural area.

Recent Changes to Supply

No new hotels have been developed in Sevenoaks or its surrounds in the last 2 years. The most recent major development in the wider area has been the opening of the Village Hotel at Maidstone (junction 6 M20).

Locally there has been investment in the product, most notably a full refurbishment of Brandshatch Place and a £0.5 million refurbishment at the Kings Arms at Westerham. The Holiday Inn at Maidstone/Sevenoaks is also undergoing refurbishment.