1970s PRIVATE LIFE
9142 HOTEL/LEISURE COMPLEX AT HAMPTON COURT
[This is the proposal document we circulated to potential partners]
1. SUMMARY
We are seeking partners to assist us in forming a consortium, with the objective of developing one of the prime leisure/tourist sites remaining in the U.K.
Only 500 yards from Hampton Court, the site, of more than 40 acres, has an effective frontage of 400 yards onto the River Thames.
As currently planned, the initial development would consist of a 150 bedroom hotel, coupled with a 100 berth marina and a private club with some of the best sports and leisure facilities in the U.K.
The acceptability of the development has been established with the key planning authorities and local pressure groups. An option has already been negotiated.
Profitability of the venture would depend upon the exact requirements of our partners, but the scheme illustrated would show a profit of nearly £ 1 million per annum on an investment of just over £ 51/ million, giving a return on investment of 17%.
2 DEVELOPMENT CURRENTLY PROPOSED (details shown in Appendix B)
The final development must, of course, depend upon the particular requirements of our partners. However, as a guide, the outline development as currently proposed is detailed below.
It will be seen that this development could be separated into two, or more, distinct parts. In the plan these are integrated, since this allows each to gain the maximum benefit from the efficient, full utilisation of shared resources.
a) PRIVATE CLUB
The linch-pin of the complex is the club. This will provide a unique range of sports and entertainments for some 5,000 full members, together with their families, drawn from the surrounding 10 miles.
In addition these facilities would also be available to the "short term members" visiting the hotel.
The club would aim to provide the whole range of individual, as opposed to team, sports The extent of these should make the complex the best equipped private club, of its type, in the U K
Some of these, requiring large areas (such as golf, riding and sailing) Might be made available away from the site The main development would, however, provide the widest possible range of the most marketable all-weather activities (such as swimming, squash, indoor tennis, bowls and badminton), as well as outdoor tennis, bowls and a par-3 golf course
b) HOTEL
There would be a 150 bed luxury hotel, providing the main source of revenue, as well as spreading the running costs of the club. This would be aimed at the business/foreign visitor markets, using the unique advantages offered by the club as its main selling feature.
c) MARINA
Within the club there would be a 100 berth marina.
3 LOCATION (plans included in Appendix A)
The proposed site for the complex is believed to be the most attractive, for leisure use, remaining in the U.K.
The 42 acre site is only 500 yards upstream from Hampton Court Palace. In a historical, as well as attractive area, it is bounded by the river, public parks and good housing (in a conservation area)
If there is a particularly large demand for either club or hotel facilities, which cannot be met on the main site, there are several other sites in the vicinity which would allow for a significant degree of expansion
One of these adjoins the main site, giving an extra 12 acres, for-additional bedrooms and further sporting activities
Another location is just over a mile upstream It offers more than 150 acres, with an effective river frontage of 1,000 yards This could be used for an international standard 18 hole golf course, together with stabling and riding facilities, as well as more hotel rooms It lies alongside 500 acres of reservoir, which could be most effectively used for sailing and water-skiing
COMMUNICATIONS
The development would be easily reached by all means of transport.
1) ROADS
The end of the M3 motorway is within three miles. By the time the development is completed this will connect with the M25 orbital motorway, connecting in turn to the whole motorway network.
Access roads to the M3 are relatively lightly loaded, and are being upgraded (with a major new orbital road planned near to the site). This should, therefore, remain 5 - 10 minutes away, and car drivers should find the complex particularly easy to reach.
Central London is only 12 miles away, and the roads are being improved; though this journey time can be up to 45 minutes in the `rush' hours.
2) RAIL
Hampton Court station is only 500 yards away, a maximum of 3 minutes by road. There is a good service to Waterloo, which can be reached in just over 30 minutes.
3) AIR
Lying between the two international airports, 8 miles from Heathrow and 20 miles from Gatwick, the hotel will be well placed to receive visitors from both.
Currently the journey time to Heathrow is 20 - 30 minutes, and Gatwick about 1 hour. However, both times will drop dramatically upon completion of the M25 motorway.
b) CLUB
1) TOTAL DEMAND
Within 10 miles of the club live 1¼ million people, in ½ million households. As the area is largely `commuter country' a significant proportion of these are in the BC1 classes; the target market for this sort of club.
In addition, when the motorway network is complete the radius within which new members could be easily attracted will be significantly increased
There has already been a very rapid increase in demand for leisure facilities in the area. This is particularly true of the exploding market for all-weather sports such as squash, badminton, and indoor tennis and bowls. This market has yet to be tapped on a large scale, though the nearby Sandown Park complex is very successful on a more limited scale.
Indicative of the demand is that for the local authority `leisure centre, which opened recently. It charges £8 per family for membership, which only allows some priority on bookings, and yet it recruited its full 8,000 membership in less than 4 months; and was running at almost 100 % occupancy of the main facilities
2) MARKET REQUIREMENTS
It is intended that the club will provide a complete range of activities for the whole family, as opposed to the strictly limited activities offered to specific individuals by its competitors. As such it is intended to tap a new, and larger, market.
Statistics on existing sports usage are not, therefore, particularly relevant However, as a very rough indication of potential, the numbers already involved in the various sports in the area are likely to exceed .
Golf 200,000 Tennis 200,000
Sailing 200,000 Badminton 10,000
Bowls 10,000 Squash (not available but
all clubs over-subscribed)
*based on percentage national figures
The requirement for entertainment facilities is more difficult to illustrate. However, the area supports a very large number of restaurants, something over thirty within a mile of the site, and many of these offer some form of additional entertainment (usually dancing - but sometimes limited cabaret), and again there are at least five in this category within a mile.
APPENDIX C
CAPITAL COSTS £' 000
LAND (1) 1,000
less sale of gravel 400
TOTAL 600
HOTEL (2) 3,750
CLUB
Indoor Sports (3) 900
Nightclub (4) 200
Outdoor facilities 100
TOTAL 1,200
MARINA
Equipment 60
Landscaping 30
TOTAL 90
GRAND TOTAL 5,640
(1) at £24,000 per acre for 42 acres
(2) at £25,000 per bedroom
(3) 60,000 sq. ft. at £15 per sq. ft.
(4) 30 sq. ft. per head at £30 per sq. ft.
APPENDIX D
REVENUE AND PROFITS
HOTEL REVENUE PROFIT
£' 000 p.a. £' 000 p.a.
Accomodation (1) 876 225 (8)
Food and Drink (2) 876 225 (8)
Club Food and Drink (3) 400 100 (8)
TOTAL 2,152 550
CLUB
Membership(4)
100
100
SportingCharges(5)
60
60
Nightclub
(6) 450
225 (9)
TOTAL 610 385
MARINA
Berthing (7) 30 20
Sales 50 10
TOTAL 80 30
GRAND TOTAL 2,842 965
Return on Investment 17%
(1) 150 beds at £20 per night average net and occupancy 80% (2) at 50 % of hotel guest total spending (3) members on average use restaurant twice per annum only (4) 5,000 full members at £20 per annum (5) £200 per day at 300 days per annum (6) 300 days at 50% capacity and £10 per head (7) at £10 per foot per year (8) net profit 26% (9) net profit 50%
APPENDIX E
CASH FLOW ANALYSIS ( £' 000)
1978 1979 1980 1981 1982 1983
1984
Inflation (1) 12% 10% 10% 10% 10% 10% 10%(2)
Price Index 100 112 123 135 149 164 180
CAPITAL COSTS
at 1978 prices -1,900 -1,300 -2,500
Inflated -1,900 -1,500 -3,000
ALLOWANCES (on equipment only)
at 1978 prices 1,000
Inflated 1,200
NET REVENUE
at 1978 prices 500 1,000 1,000 1,000
Inflated 700 1,500 1,600 1,800
CORPORATION TAX (at 52%)
at 1978 prices -200. -300 -500 -500 -500
Inflated -200 -400 -700 -800 -900
AFTER TAX CASH FLOW
at 1978 prices -2,100 -1,300 -1,500 200 500 500 500
Inflated -2,100 -1,500 -1,800 300 800 800 900
(1) Sunday Times forecast (2) rising at 10% per annum
APPENDIX B
DETAILED FACILITIES `Illustrating' one possible scheme
a) HOTEL
BEDROOMS 150 on 3 floors, each a minimum of 15' X 20'
(including bathroom but
excluding balcony)
RESTAURANTS
150 seat
restaurant and 50 seat coffee shop
BARS two bars covering different tastes
SHOPS Hairdresser, Souvenirs/Tobacconist, Travel Agent
LEISURE Indoor tropical garden 90' X 90' With 25m. by
12½ m. swimming pool and sauna and health club
b) CLUB (also available to hotel guests)
TENNIS/BADMINTON
Indoor sports hall (120' X 120' X 30')
Multi-purpose but mainly used
for
tennis and
badminton. 10
outdoor tennis courts
BOWLS Indoor green (126' X 126') Outdoor green
SQUASH 8 courts
TABLE TENNIS 2 tables
BILLIARDS/SNOOKER 2 tables
GOLF
9 hole 'par-3' course, total length 1,700 yards
with no hole shorter
than 150 yards.
NIGHTCLUB/DISCO 300 seats, with stage equipment
c) MARINA
BERTHS 100 permanent (90 at 30' and 10 at 50')
20 temporary
hits