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RevPAR of Hotels in the UK Will Show Slight Growth in 2012

News The data from STR Global shows that this year both the regional UK hotels and London accommodations will have modest growth in RevPAR, so the market will follow the trend of 2011 when London and other major destinations of the country showed positive results.

2011 was rather successful thanks to growth of demand. Even though the demand is expected to be high, STR Global mentions there’s a high level of uncertainty in the economy, so the forecasts of the company mention the growth of RevPAR of 1.9% for London hotels and of 0.6% for regional hotels.

RevPAR of hotels in London added 8.4% in 2011. Detailed examining of hotel performance showed that a series of large events didn’t draw many revenues to hotels. April 2011, the week of the royal wedding, even featured the decline of RevPAR of 19.4%. Street riots and protests in August also didn’t cause much impact on hotels’ occupancy. The biggest growth of revenues showed upscale and upper scale markets (+10.4%) and middle scale hotels (+5.7%). The regional UK hotels showed improvement thanks to increased demand and growth of RevPAR of 3.5% for midscale and economy accommodations, and of 1.2% for luxury accommodations. For regional cities the positive results were reached thanks to increased rates and demand. Hotels in Harrogate and Reading are the best performers with the growth of occupancy of 6% and 7.6% respectively. Hotels in Oxford and Brighton show best ADR - +4.9% and +4.6% respectively.

The highest level of occupancy among the regional hotels was reached by Heathrow Airport (82.7%), York and Edinburg (80% both).


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