Detailed Districts/Cities/Towns
Kent East Hotel Performance
The performance of hotels in Kent East varies by location and standard of hotel. 4 star hotels average 65% occupancy but perform significantly above this in Canterbury. 3 star occupancies range from 50-60% in Dover and Folkestone to 70%+ in Ashford, Canterbury, Ramsgate and Deal/Sandwich. Budget hotel occupancies are generally high across Kent East, and are highest in Ashford, Margate, Whitstable, Folkestone and Dover (70-80%).
Kent East Hotels — Average Annual Room Occupancy 2002
| Type/ Standard of Hotel |
Average Annual Room Occupancy % |
| 4 Star |
65 |
| 3 Star |
53-73 |
| Budget |
55-82 |
| 2 Star/Diamond Rated/Lower Grade |
50-60 |
| Country Inns |
65-70 |
Achieved room rates in 4 star hotels average £70, though are considerably higher for country house/destination hotels. 3 star achieved room rates range by destination from £41-£59, and are highest in Canterbury. The rates being achieved by country inns are similar to this.
Kent East Hotels — Average Annual Achieved Room Rates 2002
| Type/ Standard of Hotel |
Average Annual Achieved Room Rate £ |
| 4 Star |
70 |
| 3 Star |
41-59 |
| Budget |
n/a |
| 2 Star/Diamond Rated/Lower Grade |
n/a |
| Country Inns |
40-60 |
Market mix is broadly balanced between business and leisure markets in 3 and 4 star hotels in Kent East, and in country inns. Certain budget hotels are dominated by the leisure market — at Folkestone, Ashford and Canterbury, as are lower grade hotels. Levels of denied business are highest for Canterbury 3 and 4 star hotels, and budget hotels in Margate and Whitstable, and during the summer and holiday periods at Canterbury, Ashford and Folkestone. Sittingbourne budgets are denying significant levels of business demand during the week.
The Potential For New Hotel Development
There are a number of factors driving growth in the Kent East hotel market. These include major regeneration site development at Canterbury and Folkestone, the growth of demand for the International Passenger Station at Ashford and the completion of the High Speed Rail Link, the further development of the Port of Dover, and the designation of Ashford as a growth point with further population growth of 25,000. These drivers have implications in terms of hotel development potential.
Below we summarise some of these ‘hot spots’ by type and standard of hotel. The area factsheets that follow will detail these development opportunities by location, together with more detailed supply and performance data.
3/4 Star Hotels
The anticipated growth in the Kent East market is likely to result in demand for further 3/4 star hotel development, either through new build or through the redevelopment, up-grading and expansion of existing hotels.
The key location for new 4 star development is: Canterbury
Additional 3 star provision can be supported in: Canterbury Ramsgate
There may also be potential for the development and/or expansion of small 3 star hotels by independent operators in: Broadstairs, Hythe, Deal/Sandwich, Whitstable, Sittingbourne
Boutique Hotels
Boutique or town house development could be one way of meeting 3 and 4 star hotel demand in destinations of character and of appeal to affluent niche markets e.g. where there is a focus on food or the arts. The key location for boutique hotel development is: Canterbury
There may also be scope for small boutique/ gastro hotel offerings developed by local entrepreneurs in: Whitstable, Margate
Country House Hotels/Country Club Resorts
The strong performance of the health spa and adult only hotel products in the South East and the absence of such products in Kent East suggests there could be potential for their development, given suitable properties. There could also be scope for further small luxury or 3 star country house hotels.
Budget and Upper Tier Budget Hotels
There is clear market potential for additional budget hotel accommodation across Kent East, based upon current strong performance, significant levels of denials, and gaps in current provision where some locations are not served by budget hotels.
Key locations where there appears to be scope for budget and/ or upper-tier hotel development are:Ashford, Ramsgate, Canterbury, Dover.
Locations where there appears to be scope for new budget hotel development are: Folkestone, Margate, Whitstable, Sittingbourne
Quality Pub Hotels and Country Inns
The new breed of contemporary stylish pub accommodation combined with a distinctive food and drink offer often in character properties is performing well where developed to date in Kent East, and they bring diversity to the offer. There is potential for bedroom additions to rural pubs and character pubs in market towns across Kent East.
CANTERBURY, ASHFORD, DOVER, FOLKESTONE, SITTINGBOURNE, THANET