The Scale roof walk and zip wire attraction opened in April last year but is struggling to attract the projected visitors
Welsh Rugby Union chairman Richard Collier-Keywood has revealed the Principality Stadium’s Scale roof walk and zip wire is hugely underperforming in a wide-ranging interview.
Collier-Keywood admitted the Union would consider selling the attraction, which opened in April last year, to the company that operates it. He told BusinessLive improving the current situation is a priority for the organisation.
The much-trumpeted arrival of Scale came at a cost of around £5m and offers visitors the chance to walk around the 60-metre-high stadium roof, zip wire across its canopy and abseil down to the ground. To do all three costs £89 per person, while the simple roof walk alone is £44. Sign up to Inside Welsh rugby on Substack to get exclusive news stories and insight from behind the scenes in Welsh rugby.
It was expected to follow in the success experienced by other stadiums, such as Tottenham Hotspur’s, but bookings have been hugely underwhelming. The attraction is operated on its behalf by Wire & Sky which runs similar attractions at the home of Liverpool FC, Anfield, and the Tottenham Hotspur Stadium.
While explored at an early stage, Sky & Wire weren’t asked to make an equity investment, which would have reduced the union’s capital expenditure on Scale.
Mr Collier-Keywood said: “We are working with Sky & Wire very closely to try and improve it. That is pretty much close to the top of the list for me. It is nowhere near the projections we had hoped for, so we are looking at this very closely with Wire & Sky. We are also entering into a better period with more people in the summer when it is sunny. So, I think it is reasonable to see what happens over the summer period, but we are working with Wire & Sky to see how we can do this better.”
Asked if it could be sold with Sky & Wire potentially taking on ownership, the chairman said: “We are open to doing any sort of deal that improves the current position and for me nothing is off the table.”
Conversely, the WRU’s other big non-rugby project – the Parkgate Hotel – is performing strongly, according to Collier-Keywood, although he has not ruled out the Union selling its stake in the future.
In its last audited accounts to the end of June, 2024, the hotel saw its revenues climb by around 10% to £12.35m on a year earlier. The average occupancy was 85% (81% in the previous year) with revenue per available room up from £111 to £116. It has just over £43m remaining on a lease financing deal with L&G, which was struck on a 45-year term.
It posted an operating profit of £1.45m with cash in hand, which is accruing interest, of £1.47m. Since last June the hotel’s cash positive position has increased significantly. Subject to approval from minority shareholder Rightacres, the WRU could benefit from a transfer of cash from the hotel via an intercompany transaction.
Mr Collier-Keywood said: “I am reasonably confident that we can do that shortly, but we are locked in that together (with Rightacres).”
In theory the hotel asset could be sold onto an investor, who would then take on the remaining lease finance (mortgage) agreement with L&G with the Celtic Collection, whose other interests include the Celtic Manor Resort and ICC Wales in Newport, remaining as the hotel’s operator.
While speculative, with a strong cash flow, a sale of the hotel could generate a significant eight-figure sum. Any sale would need approval from L&G and Rightacres.
Asked if a potential sale of the hotel could be considered, Mr Collier-Keywood said it couldn’t be ruled out. He added: “We want to make our balance sheet work for us and we will look at the hotel over the next six to 12 months so we can make a call on that (selling option). However, there are quite a few things broken, but the hotel is not one of them.”
As the hotel is cash positive, the union could decide to maintain its majority ownership for the long-term.
