Latest figures for the serviced apartment sector (up to 30 Sept 2017) show RevPAR for UK overall is up 7.5% year-on-year at £123.47, with London up 17% at £171.59 (source: STR).
The latest Hotel Bulletin Q3 2017 reports that in Q3 2017, average growth in RevPAR at 5% was the lowest level since Q1 2016. However the overall long-term outlook for UK hotels remains positive, and forecasts expect year-end RevPAR to show an overall increase of 4.5% despite the challenges of controlling costs, especially labour, the sourcing of staff and the UK’s expanding hotel supply.
Belfast and Edinburgh benefited from tourists taking advantage of the weaker pound, with an 11% RevPAR growth, while London recorded a 2% increase in RevPAR despite a drop in occupancy.
Russell Kett, HVS chairman, said: “The five-year trend suggests that hotel operators will continue to adapt and innovate to drive continued growth and profitability, and thereby value. It is unlikely that investor interest will ever wane substantially for hotels in London, although it might start to taper off in the provinces.”
Transaction values in Q3 totalled £1.6bn, partly due to investors wanting to complete transactions before the unknown impact of Brexit. UK hotels rank in the top three for gross operating profit per available room (GOPPAR), ahead of the US, China, France, Spain, and Germany, and behind only Singapore and the UAE.