Gulf expansion into overdrive

Not a usual topic for a posting today, but the numbers involved are quite impressive and reflect another side to the current world economic concerns.  With news today of a very slight improvement in the UK construction industry, after two quarters of decline interesting news and figures emerge from the Gulf with MoveHut (www.movehut.co.uk) reporting on the prospects for the construction industry in the UAE.

Led by the hotel and commercial sectors, the value of projects completing this year is expected to increase over 70% to £51.3 billion.  The Gulf Cooperation Council, the political and economic union of states surrounding the Persian Gulf and Arabian peninsular, awarded construction contacts worth over £37 billion in 2011 across the commercial, retail, hospitality, and residential sectors which, with the 2012 contracts, will see building activity progress into 2013.

A significant aspect of these figures is down to the increased demand for hotel space in the GCC.  Room revenues are predicted to reach $22 billion (£14 billion) this year and are predicted to reach $27 billion (£17 billion) by 2015, according to Global Retail Development Index.  This increase in demand is due to the positive growth estimates for the GCC, based on the region’s strong economic growth and political stability. Forecasts for GCC’s economic growth have projected to 4.3%, up from 3.4%.

In comparison, the value of the Uk’s construction, across all sectors, including housebuilding (apparently there are some) is £90 billion, but the important difference is the our industry is at best flatlining, at worst continuing to decline.

A modular hotel for Western Avenue

Capita Symonds announces that planning permission has been granted for a new hotel on Western Avenue.  The 6 storey 4 star hotel building will have 160 rooms and a bar, restaurant, gym and conference facilities.  Also included in the scheme is an HQ office building and a data centre.

So far so good, but the twist is that the building will be built using off-site modular construction technology.  Designed by architects ESA, part of the Capita Symonds Group, the designers have invested 5 years into the project.  Working closely with a modular construction company the company have developed a flexible solution that allows for the production process to be standardised not the design. 

The scheme which is situated on a site opposite Park Royal tube station will provide an interesting contrast to existing modular built hotels in the London region.  ESA promotes that the hotel will have a unique façade and other high quality design features and we certainly hope the new hotel will help promote the cause of off site modular construction.

It is understood that work will begin on site later in the year.

Picture of the proposed hotel design from Capita Symonds website www.capitasymonds.co.uk