Wasps Second Hotel

[Neils]

https://www.coventrytelegraph.net/news/coventry-news/wasps-ready-bid-new-ricoh-17399870

[Steve from Cov]

It sounds very exciting but I’m unsure why the club would want to invest/build a hotel at great cost - that won’t provide any revenue anytime soon - when the accounts suggest they need to tighten their belt and address financial losses?

Can anyone explain please?

[NellyWellyWaspy]

The entire project will be financed by the hotel chain, not Wasps. Wasps will take a 'rent'. No investment, no risk.

[Shugs]

Agreed, Wasps can't lose really. They won't have to lay out capital build costs as Nelly says but it should boost revenue for events at the Ricoh such as concerts, conferences, casino etc.

[Vespula Vulgaris]

There's an optimum number of beds for a hotel when it comes to profit. Currently we fall short of that.

[BG]

There's an optimum number of beds for a hotel when it comes to profit. Currently we fall short of that.

I'm not an expert in hotel construction or the accommodation business but it must be slightly more complicated than that.

Number of beds to floor area, rate and rent costs, local wage and overhead costs, local supply and demand figures.

When this idea was floated I did wonder if there was actually the demand for another hotel in the area (do we know what hotel chain it is? ). North Coventry isn't exactly a tourist destination.. people flying in for business will most likely stay near birmingham or if they are dealing with JRL will most likely stay in Warwick/Leamingtion.

Maybe its a current hotel chain wishing up to upgrade a nearby older/smaller location (Novotel is not far away)

[Rossm]

Trump Coventry

[Old Geezer]

Well, RossM, if you are right that must be good news since his hotels are generally very successful businesses!!!!

[Tervueren]

presuming that is not #fakenews

[St Bruno]

I'm sure this has probably been discussed before, but please remind me what provision is to be made for Car Park C season ticket holders in the event that this new hotel gets built.

[Neils]

They are providing a new Car Park C over the railway with a bridge from existing A & B areas. All agreed with council and circulated to STH last year.

[St Bruno]

Thank you, Neils. I did have a vague recollection of an announcement having been made, but the detail was hidden beneath a pile of cobwebs in the back of my mind!

[Vespula Vulgaris]

There's an optimum number of beds for a hotel when it comes to profit. Currently we fall short of that.

I'm not an expert in hotel construction or the accommodation business but it must be slightly more complicated than that.

Of course, but there are certain fixed costs when running a hotel that don't significantly increase when the number of rooms, and therefore potential revenue increase.

Obviously there are other, more variable costs, but assuming the plan is to build a profitable hotel, then those variable costs should cover themselves.

And let's be honest, with the concerts, the casino, and the conference facilities it makes sense to have more accomodation.

[coddy]

Indeed, we had a works party there in 2015 and we was spread over 3 hotels.

[welsh wasp]

All Trump businesses make a profit according to Donald - even when they don't!
Seriously - near the M6, plenty of car parking, other than on rugby days. Opportunity for - Premier Inn, Travell Lodge, Accor.