UK Hotel Market Reports Record First-Half Performance

The UK hotel market reported record performance in the first six months of 2017 with the highest occupancy, average daily rate and revpar for any first-half on record. Data from STR reveals that occupancy increased 1.7% to an actual level of 75.1% compared with the previous year while average daily rate was up 4.7% to £89.33 and revpar rose 6.5% to £67.12. STR analysts said the devaluation in the pound following the Brexit vote last year had resulted in strong tourism growth for the UK, which has in turn benefited the country’s hotel sector. This aligned with the UK’s hotel rate growth, which was particularly high in London, up 6.2% to £143.57 in the first half of the year. The UK capital continued to post performance growth despite experiencing terror attacks in March and June. Outside of London, the regional market saw average daily rate rise 3.2% to an actual level of £69.46 – a record level for the first half of the year. Occupancy rose 1.2% in the period to 73.6%, which was also a record. STR analysts said as well as several high-impact events in regional cities in the first half of the year, the pound devaluation had also resulted in more domestic holiday travel within the UK.