The Hotel Holiday Inn Camden Lock is one of the modern hotels in London. It is a very a well-liked four star hotel located right at the centre of stylish Camden Town. Based on its location, most marketers assert that it investors have many opportunities to invest in various sectors. Location among other factors plays a very crucial role in the performance of any business investment, (Books, 2010). The Hotel Inn Camden Lock is located at a very strategic site where various economic activities are available. Such activities include; tourism, well developed transport system, as well as a good number of various kinds of businesses. Thus, the major objective of this report is to analyze the opportunities that investors can take advantage of by investing in The Hotel Inn Camden Lock in its location.
Market area review
As mentioned above, The Hotel Inn Camden Lock is located at the centre of the popular Camden Town in London. One of the unique features of this location is that, it has always been the most exceptional neck of the woods of London. Arguably, for a long time now, Camden Town has been the focal point of unconventional lifestyles. In Camden, there exist various markets such as Street market, Stables market, Buck Street market and Camden Canal market; as well as other investment opportunities. For instance, it is one of the tourist attraction sites based on the fact that there are various elements of traditional London culture such as traditional pubs as well as abundance of eating places, (Books, 2010). It has also been noted that, over the weekends the most tourists visit the various markets in this region for shopping purposes. Moreover, the Hotel is located at a walking distance from the London Zoo and Regents Park. Tourist can also easily access entertainment from Camden Inn Hotel Lock. For instance, Dominion Theatre and London Palladium are located a few kilometers from the hotel.
Arguably, there is a wide range of target markets within the location of Camden Inn Hotel Lock. These target markets can be classified into various broad categories which include; corporate, government, functions/ conference and leisure. However, to be more specific, the first significant target market is the tourist that visit the area. As mentioned above, Camden Hotel is one of the most modern popular hotels in London. Easy accessibility of various tourist attraction points has been one of the contributory factors why tourists prefer this hotel as compared to others. Thus, there is an opportunity for investors to invest in products that targeting tourists. The second target market is the students, both local and foreign. According to researches that have been undertaken by various marketers, Camden Town has been known to host a good number of students from various parts of the world. A good number of universities and other learning institutions have been located in this region. Perhaps, this is one of the reasons why Camden’s economy is classified as being a “knowledge economy”. Thus, investors can also produce goods and services targeting students. Lastly, are the local people that live within this location. Notably, this area is also known by its large congregation who practice various alternative subcultures. This group comprises of the emo, punk and the goth. All these target market is evident that there are various lucrative investments opportunities for investors in this area.
As a matter of fact, Camden area is one of the developed towns in London in terms of economics. Studies indicate that Camden contributes about two percent of the gross value added in the economy of United Kingdom. Besides, it has a good number various businesses of all magnitudes and various classes of businesses in most crucial sectors of contemporary economy. Some of these businesses include; transport and communication, cultural and sporting activities, hotels and restaurants, retailing, manufacturing, information technology and consultancy. About forty two percent of employment comes from knowledge based activities, (Makonnen, 2009). Moreover, the number of businesses in this town is always increasing at increasing rate each year. Therefore, Camden has a productive economy; it has been indicated that there are approximately two employment opportunities for every local individual of a working age.
In terms of transport, Camden is one of the most well connected regions in London. It links up the City of London and West End. It is also well connected to the rest of the country through railway networks. The town is about two and half hours from Brussels and Paris.
Additionally, it has about five international airports which connect it to the rest of the world. Besides development of various infrastructures such as transport net work, Camden growing economy has been associated with development of education, (Books, 2010). A good number of institutions of higher learning are located in Camden. Perhaps, this explains the reason why Camden town has a relatively higher population of international students in comparison to other towns in the region. Based on all the above mentioned economic attributes of Camden region, it is evident that investors have investment opportunities which they capitalize on.
Inbound and Domestic Tourism
In the recent past, inbound and domestic tourism has increased significantly. To be more precise, the number of visitors to the United Kingdom and Camden in particular has been increasing significantly. For instance, for the past four years, inbound tourism has increased by about five percent and the figure is still increasing. Although there are some seasonal differences that have been observed have far as inbound tourism is concerned, the rate at which it is increasing is still promising to the potential investors. In addition to inbound tourism, domestic tourism has also improved lately. Domestic tourism has increased by approximately three percent which is about one hundred and sixty million trips made by residents in the region. All the statistics for inbound and domestic tourism indicates that the tourism industry is now expanding investors stand a chance of benefiting by venturing into this sector.
There are various demand generators in this region. However, the most important one is the nearby population base, presence of a variety of businesses such as local and international companies, well developed transport network which facilitates easy movement of people from one place to another and lastly, well developed social amenities such as hospitals which promotes concentration of people in the location, (Makonnen, 2009). This indicates that there is a significant demand for the products and services of The Hotel Inn Camden Lock and other investors. In this context, demand can be categorized into various categories which include; leisure demand, corporate demand, functions/ weddings, and Meetings, Incentives, Conferences and Exhibition (M.I.C.E) demand.
Leisure demand arises due to the fact that many people are visiting Camden region for their holidays. As mentioned early, The Hotel Inn Camden Lock is strategically situated. Various leisure locations and event attractions can easily accessed from this location. For instance, it is interesting taking boat trips from the hotel in the Regent Canal. Other attraction sites that can be accessed easily from the hotel include London Zoo and Regent’s Park, (Books, 2010). Thus, the location of the hotel is expected to play a significant role in generating demand from the leisure market bearing in mind that there is a limitation in the supply of accommodation within the region.
The other category of demand is the corporate demand. Arguably, companies select various hotels for different corporate levels. For instance, senior managers prefer staying in a branded hotel. Additionally, most international and domestic corporate visitors prefer a partially or fully serviced hotel which offers such services as room service and restaurant facilities. Another demand generator is the M.I.C.E. This section encompasses businesses with domestic and international headquarters undertaking small and medium conferences, business meetings and training meetings. According to studies that have been undertaken, this kind of activities takes place for a period of two-four weeks at a given time, (Makonnen, 2009). This implies that a hotel which provides facilities supporting such activities will more attractive. All this implies that there is a strong demand base from the corporate sector as well as other sectors which will be exploited by Camden Lock Investors.
As mentioned early, the location of the hotel is at a very strategic point as far as tourism is concerned. There are a good number of tourist attractions that can be accessed from this location within a very short period of time. Such sites include; Regent’s Canal, London Zoo, Regent’s Park and a good number of markets where shopping can be done, (Camden Council, 2007). Besides, various key events are organized in Camden. For instance, several sporting and cultural events are hosted Camden. These events include but not limited to art events for instance Shoot Out Filmmaking Festival and the Surfest and the Hunter Festival sporting events.
Competitive analysis, comparing with another nearby prices, facilities, target market
Based on the fact that there is a limitation of the number of investors in the accommodation sector, studies have shown that the number of investors have starting increasing to take advantage of the readily available demand. Although there are no competitors in the location of Camden Lock, a good number of small unbranded hotels as well as branded hotels are located in various parts of Camden. This implies that there is some degree of competition and it is expected that it will increase in the near future.
Competitors in this case can be categorized into two: primary and secondary. The first primary competitor is Holiday Inn Rooty Hill 4.5 start hotel which is located at Rooty Hill. It has such facilities as; the gym, pool, bars and restaurants, (Camden Council, 2007). The charges for these facilities range $125-$245 per booking. The second major primary competitor is Chilfley Eastern Creek 4.5 star hotel located in Eastern Creek. It offers such facilities as; a 24 hour reception, bars, restaurants, gym and pool. Its rates rage from $ 120 to $390 per booking. Lastly, there are also unbranded primary competitors such as Alexander the Great Motel and the Gateway Motel Vineyard.
On the other hand, the most significant secondary competitors include: Hawkesbury race Club Motel which is a four star hotel located in Windsor. It offers such facilities as restaurant and pool and charges about $120-$270; Blacktown Waldorf four star hotel located in Blacktown, it offers such facilities as a 24 hour reception and daily servicing at a cost of $750-$900; and lastly, is Sydney Gateway Holiday Park 4.5 star hotel located in Parklea, which offers self contained cabins at a cost of $125-$270. Other secondary competitors include; Penrith Valley Inn, Quality Inn Penrith, Hills Lodge Grand Mercure and Quest Castle Hill, (Camden Council, 2007).
Arguably, based on the above, it is evident that investors have an opportunity of benefiting more from The Hotel Inn Camden Lock. The layout of this property works effectively with various functions and operations. However, the hotel should be expanded or rather improved so as to tap these opportunities. Therefore, it is evident this property is worthwhile opportunity that should be pursued by the investors. This can be justified through a number of factors. For instance, the economy of Camden has improved significantly in the recent past. This implies that all sectors within the economy are also growing. Besides, the tourism sector in this region is expanding significantly. Therefore, by improving the property to accommodate the expanding demand, the investors will have an opportunity of benefiting more from this property.
Books, LLC. 2010. London Borough of Camden. London: General Books LLC.
Camden Council. 2007. Tourism Action Plan 2008-2011. London: Sydney Precincts.
Makonnen, T. 2009. Economic Development Framework 2009 to 2012: Camden Economic
Development Partnership. London: Government Press.