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Case Study - Hampton by Hilton, Blackpool
Hampton by Hilton Blackpool

Hampton by Hilton Lounge Hampton by Hilton Restaurant

The new build of a 130 bedroom Hampton by Hilton, hotel on the site of the derelict Palm Beach and Bourne hotels in Blackpool. Create Developments had been in contact with the owners of the two respective properties for an extended period.

Prior to Create’s involvement there had been a previous planning permission for an unviable hotel redevelopment. This had proved over ambitious and had lapsed prior to our involvement.

The site is a prime location for the new hotel, near to the Pleasure Beach, the town’s popular amusement park known for its rollercoasters. It is within walking distance of two tram stations that provide easy access to the centre of Blackpool.

Situated to the farthest southern zone of the town, the scheme acts as a catalyst for redevelopment which will lead the way in regenerating the new South Promenade.

Client Create Developments (Blackpool) Ltd
Project TypeNew Build Hotel
Value£12 million
Duration 72 Weeks
Rooms 130 Beds
Completion May 2018
Development Logos

DEVELOPMENT CHALLENGES

  • Engagement with multiple stakeholders, residential neighbours and management of differing objectives.
  • Gaining investor confidence within Blackpool’s regeneration programme.
  • Identification and selection of the most appropriate hotel brand and optimum service level offering for the Blackpool market.
  • The development of a design which was viable whilst satisfying brand requirements and statutory authorities.

DEVELOPMENT OUTCOMES

  • Appraised and selected the most effective development and funding package from our portfolio of funding partners.
  • Selected an enhanced ground rent funding method with CBRE GI (fund managers to over £30bn of UK invested blue chip pension funds) providing a low interest development funding model.
  • Secured senior debt funding from Blackpool Council alongside the long leasehold ground rent.
  • Developed a planning strategy which included full stakeholder engagement for a 130 bed Hilton branded hotel. This minimised associated risks & secured a positive planning outcome.
  • Secured a 20 year franchise agreement with Hilton Hotels.
  • Secured a 10 year operating management agreement with Interstate Europe.
  • Set up an operating SPV to control the development from concept to operating. Hotel Completed May 18 and trading well.
  • Over 40 jobs created within Blackpool’s hospitality market.

DEVELOPMENT CONSIDERATIONS

  • Designed an asset to maximise room revenue, including Double-Double rooms and Family Suites appealing to the leisure market.
  • Extended food and beverage offering above brand standards.
  • Enhanced interior design.
  • Specification of suitable products to maximise tax efficiency and capital allowances..

TRADING PERFORMANCE

  • Awarded fastest ramp up for any hotel within the Hilton portfolio.
  • Surpassed Year 3 trading projections in Year 1.