Having gained planning consent to develop a 168-room hotel on the site of the former Banana Warehouse on Piccadilly in the city centre of York overlooking the River Foss, Axcel Hospitality (York) Ltd, retained AR Hospitality Consulting in 2025 to provide a Feasibility Study to support funding. The Study assessed the hotel market and trading potential including full operating projections for the hotel to EBITDA for the first five years of operation with detailed assumptions.
With a diverse mix of business sectors, a proactive approach to regeneration, more visitor attractions per square mile than any other UK city and its proximity to the Yorkshire Dales and the North York Moors, there is an excellent opportunity for a new hotel development.
Our assessment was positive for the proposed upper upscale lifestyle brand, Tribute Portfolio, providing a contemporary product that will be popular with both leisure and commercial demand, backed by the Marriott platform.
Whilst the city already has a well-established supply of hotels and multinational brands and has seen increases in supply in recent years, we identified that the addition of higher quality hotels has helped York to develop as a tourist destination bringing more affluent overnight visitors into the city centre.
Due to the broad base of drivers in the city, and a strong economy based around tourism, the railways, the University and commercial sectors such as bioscience, creative, digital and professional and financial services, hotel demand is robust, with occupancy above 80% annually.
Axcel Hospitality (York) Ltd are established and experienced hotel developers and owner operators with several hotels across the UK and AR Hospitality Consulting were delighted to support with this exciting venture.