Close

Cart

Total $0.00

Checkout

07 February 2017, London: A growing divide is emerging in the UK’s hotel sector between the performance of leisure-based hotels compared with primarily business-orientated properties, according to the latest Hotel Bulletin Q4 2016, published this week by HVS, AlixPartners, STR and AM:PM.

Those hotels in cities with a more developed tourism industry performed noticeably better in Q4 2016 as a result of the weaker pound attracting foreign tourists and Brits choosing staycations.

Belfast, for example, saw RevPAR (rooms revenue per available room) growth of 23% during the final quarter of 2016 on the back of significant investment in the city as a tourist destination. Liverpool’s hotels reported growth of 14% during the same period, while Edinburgh and Bath both experienced 13% growth in RevPAR.

By contrast hotels in Newcastle saw an 8% decline in RevPAR during Q4 2016, Aberdeen a 22% decline on the back of the falling oil market, while Cardiff’s RevPAR dropped by 6%.

Hotels in London experienced a modest 2% increase in both RevPAR and occupancy, while average room rates remained static. Occupancy in London’s hotel sector had shown a decline for the previous seven quarters.

“As the most popular tourist city London is particularly well placed to attract more visitors and benefit from the weaker pound but growth was offset by the potential of corporate decline,” commented HVS chairman Russell Kett.

“London may see a further decline in corporate bookings because of depressed GDP growth, particularly if threats made by several large companies to move staff out of the country come to fruition.”

The steady increase in the UK’s hotel supply continues with the addition of 14,600 hotel bedrooms during 2016 – a net increase of 1.7% when closures are taken into account. Forecasts estimate that 2017 will see supply growth of 3.3%. London shows the strongest annual growth in hotel bedrooms, while the UK’s regions average a net supply gain of 1%.

The budget sector makes up 47% of the UK’s active pipeline as Premier Inn and Travelodge continue their aggressive expansion plans. The two brands account for nearly 70% of budget bedrooms opened in 2016. Around 30% of the active pipeline are four star hotels, 10% are apartments and nine percent are five-star properties.

“Budget brands now account for 25% of all hotel bedrooms in the UK, while the main casualties have been the two- and three-star properties. It’s difficult to envisage this trend changing for the foreseeable future,” added Kett.

Download the Hotel Bulletin: Q4 2016. 

About HVS

HVS, the world’s leading consulting and services organization focused on the hotel, mixed-use, shared ownership, gaming, and leisure industries, was established in 1980. The company performs 4,500+ assignments each year for hotel and real estate owners, operators, investors, banks and developers worldwide. HVS principals are regarded as the leading experts in their respective regions of the globe. Through a network of some 35 offices and more than 350 professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. HVS.com
Superior results through unrivalled hospitality intelligence. Everywhere

Contact: Linda Pettit

Linda@tilburstowmedia.co.uk / +44 13 4283 2866

Contact: Russell Kett, Chairman, HVS London

rkett@hvs.com / +44 (0) 20 7878 7701

About the HVS, AlixPartners and AM:PM Quarterly Hotel Bulletin

The Hotel Bulletin analyses demand, supply, pipeline and transactions in the hotel market in 12 cities across the UK. The information contained in this Press Release sets out a summary of the information contained in the Hotel Bulletin and should be read with and is subject to the terms, limitations and assumptions contained in the Hotel Bulletin.

About AlixPartners

In today’s fast paced global market timing is everything. You want to protect, grow or transform your business. To meet these challenges we offer clients small teams of highly qualified experts with profound sector and operational insight. Our clients include corporate boards and management, law firms, investment banks, investors and others who appreciate the candor, dedication, and transformative expertise of our teams. We will ensure insight drives action at that exact moment that is critical for success. Alixpartners.com

About AM:PM

AM:PM is a leading source of market intelligence on the UK & Ireland hotel industry. We maintain extensive data relating to hotel supply to help clients gain a comprehensive and unrivalled understanding of the size and structure of the hotel industry. We offer a suite of subscription-based online products that allow clients to search, analyse and benchmark the hotel sector. This includes access to a unique hotel database with details of over one million hotel rooms covering the past, present and future hotel supply throughout the UK & Ireland.
We’re serious about hotels, AM:PM.

About STR

STR is the source for premium global data benchmarking, analytics and marketplace insights. Our data is confidential, reliable, accurate and actionable. Our comprehensive solutions, analytics and unrivalled marketplace insights are built to fuel growth and help our clients make better business decisions. For further information, please visit www.str.com, email hotelinfo@str.com or call +44 (0) 207 922 1930.

Please login or register to post a comment.