IN the wake of the disastrous Covid-19 Pandemic, the ‘normal’ way of life was interrupted.
Government restrictions on social interaction and travel meant that the hotel industry had to reinvent the hospitality sector in order to adapt to the changes in market demand and operational management.
The emphasis was put on ensuring the health and safety of all customers and providing a safe environment for holiday makers.
At the same time, Gibraltar has seen a decline in the number of hotel beds, with established hotels such as Continental Hotel, Queens Hotel, and now the renowned Caleta Palace Hotel demolished for redevelopment into residential schemes.
This has added to the under supply of existing hotels and bed space in Gibraltar and has inevitably led to a sharp increase in the demand for serviced apartments for short term holiday lets.
There is currently a market gap for BnB accommodation, which is much needed in Gibraltar, to avoid the situation of summer 2021, when demand for rooms exceeded availability.
Projects are now focusing on locating hotels back into the city center with all its amenities to bring back tourism to the heart of town.
It is estimated that there are on average only 650 hotel beds available in Gibraltar and this shortage has led to more demand for short term holiday apartment lettings.
With a couple of exceptions, most hotel projects under way in Gibraltar are small scale at around 20 keys.
There is nothing else that provides for a city center hotel in the way that the Parade Hotel Development does.
This well-planned project has full planning permission to provide a hotel over two freehold properties.
The scheme has been under planning for around two years in order to carefully perfect the concept that is now ready for development.
The properties are a stone’s throw from Central Main Street and will provide a substantial development with basement and six upper floors and a total build area in excess of 2,900 mtwo.
The hotel design and concept provides conference and meeting areas in the heart of town, lush double, and executive double hotel suites – all with lavish ensuite bathrooms – special needs suites, balconies, with bright and airy rooms featuring gallery height ceilings and views overlooking the Garrison Library Gardens and Governor’s Parade.
The hotel suites at every level are serviced by corridors peering into the central courtyard with covered Atrium where quaint seating areas are at ground level for the restaurant and other commercial amenities.
There are plans for bars, restaurants, basement cinema, conference meeting rooms, a rooftop pool, gymnasium and sun decked terraces.
Given that the demand for hotel rooms is still high with average occupancy rates around 60-70% all year round and almost 100% during peak season, now is the time to take such an investment opportunity forward which is ready to go.
The properties are also currently under town planning with an alternative scheme for residential serviced apartments.
These will follow the same concept as the hotel and include the same amenities but with apartments which can be held by the same operator or sold piece meal under a Hotel Operational Management structure.
This would attract particularly good returns for investors seeking rental returns on property investment.
For More details on the Hotel Development Scheme please contact BFA Estate Agents – Mark Francis – Director MRICS ON 200 71131 or speak with one of our agents.