The March 2018 PWC UK Hotels Forecast Update has noted "solid metrics and in many cases record occupancies" in key regional cities around the UK. Indeed, regional occupancy levels have been climbing since 2011, with budget rooms traditionally operating at high occupancy rates, according to PWC. There is an ongoing structural supply shift towards more affordable rooms, as new contenders seek to redefine expectations of 'budget' rooms.
As a newly opened affordable boutique hotel, Hotel 52 Stanley does just that. Nestled between Durham and Newcastle, in the former mining community of Stanley, the hotel offers exceptional style at a budget price.
"There's a stark difference between 'budget' and 'basic' these days in the UK hotel sector. Chic furnishings, free Wi-Fi, sumptuous breakfasts... all of these are contributing to a new breed of budget-boutique hotels that appeal to travellers looking to get more for their money.
"Holidaymakers want the best, but at a decent price that's affordable for the whole family. Business travellers are also looking to get more for their money, which has created a real opportunity for this corner of the hotel market", says Jonathan Stephens, MD, Surrenden Invest.
Hotel 52 Stanley underwent a £1.5 million renovation in 2017, before opening its doors to the public in December. The hotel now offers elegant rooms at affordable rates, with the adjacent, well-regarded Pazzo restaurant hosting lavish breakfasts and offering a wide range of lunch and dinner options. There's also a cocktail menu, which is proving particularly popular with holidaymakers looking to unwind after a long day's sightseeing.
And there's certainly plenty of that to do in the local area. City break devotees have the historic architecture of Durham, with its UNESCO World Heritage protected cathedral and castle, as well as the lively shopping and dining scene of Newcastle within easy reach. Meanwhile, those who prefer a rural escape will find the stunning North Pennines Area of Outstanding Natural Beauty just a few minutes from Hotel 52 Stanley. The area is also home to the 'living' Beamish museum - an open-air experience of life in years gone by that's not to be missed.
"One of the exciting aspects of Hotel 52 Stanley is the breadth of entertainment and business options that surround the hotel. Durham, Newcastle and Gateshead are all nearby, with excellent transport connections in place. Meanwhile, the surrounding rural beauty means that the hotel appeals to a wide variety of guests. It's a very versatile establishment that provides the perfect-price point for travellers who want a fantastic base for their break, at an affordable price."
Hotel 52 Stanley has cause to delight investors as well as guests. The hotel's 23 apartments include doubles, twins, triples and family suites (all of which come with a fully equipped kitchen), meaning that investors have an excellent range of price points to choose from. Furthermore, PWC has projected average daily rate growth of 2% for UK hotels in 2018, with revenue per available room reaching 2.3% over the course of the year. Whichever way you look at it, it seems that regional budget-boutique hotels will continue to be big business in 2018 - for travellers and investors alike.
Investment into Hotel 52 Stanley is from £57,500 with 10% NET yield offered for years 1-5.
