Hotel occupancy rates across UK cities on the rise

Hotel occupancy rates across UK cities on the rise

New figures from PwC’s latest Hotels Forecast have revealed that occupancy rates across UK regional cities have risen by 0.5 percentage points to 77% in 2017 – a record high for the industry. The research demonstrates that there is a growing number of both leisure and corporate guests being attracted to regional cities in the UK and PwC believe that this could lead to 2017 being a bumper year for investment in the UK’s regional hotel sector.

Revenue per available room is expected to rise by 2.3% to £54 by the end of 2017, a figure that is 20% higher than those previously recorded. All of this bodes well for major cities such as Birmingham, Manchester, Liverpool, Leeds and Newcastle, who are all predicted to attract strong demand for visitors.

One of the key drivers of this upward trend in occupancy rates is the low rate of the pound and the influx of overseas visitors to UK cities. In fact, according to a report released by JLL in 2016, there has been a surge of investment in UK regional hotels since the country decided to leave the EU.

Kerr Young, Director in JLL’s hotels & hospitality group, said : “London has long been a focus for hotel investment, but now regional markets are witnessing the benefit from overseas visitors following the weakening of the pound. Despite initial uncertainty in the immediate aftermath of the EU referendum, there is a positive story around the UK in terms of macro-economic stability and transparent transactional environment.”

Adding to this, Dr Andrew Sentence, Senior Economic Adviser for PwC and author of the 2017 Hotels Forecast, said: “hospitality and tourism is a key sector for growth, employment and overseas earnings in the UK.”

In light of this, it would appear that most analysts believe that the future looks pretty bright for investors in the UK hotel sector for the foreseeable future.