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Very good; miles better than the awful first Hobbit and even the plodding Rings trilogy.
My problem with the first Hobbit was that a splendid, simple story was stretched. Like Tolkien in his Rings trilogy, the balance went awry. But here the balance between fantasy rubbish and simple plot and action is spot on. Plus great effects - 3D must.
Yes I heartily recommend the fabulous Lounge at Whiteleys; great gourmet food, fantastic drinks and cocktails; incredibly comfortable seats - vital for long movies (and Smaug is very long).