PwC’s latest European Cities Hotel Forecast forecasts a return to growth in 2017 and 2018 for London, with RevPAR increasing 3.3% and 2.5% respectively partly due to a boost in overseas tourism as a result of the weaker pound post-Brexit. Occupancy also remains high, expected to grow to 82% in 2017, with a further 0.5% in 2018.
Outside London in 2017, hoteliers are predicted to see RevPAR growth of 3% and the highest ever increase in ADR in nominal terms.
This year is expected to see 20,000 rooms added to the UK hotel supply, 12,000 outside the capital.
UK staycations from UK residents are also anticipated to rise.