Following a booming year in 2017, according to PwC’s Hotels Forecast 2019, a combination of uncertainty in the economy and Brexit, low corporate demand and an oversupply of new rooms will flatten growth in hotel performance during the coming year.
A potential 5,000 new rooms are due to open in London, with 4,300 more expected in 2019, adding to the 38,000 added over the previous five years. Regionally another 40,000 rooms are due to launch in 2018 and 2019.
Occupancy in London this year is predicted to grow only fractionally and then fall 0.5% in 2019, while the regions are unlikely to see growth. However, UK hotel investment in 2018 is at its highest level since 2015.