UK Hotel Market Struggles Despite Promising End To 2018

HotelThe latest data released by UKHospitality has revealed that the UK hotel market is still underperforming against its European peers despite a positive end to 2018.

UKHospitality Chief Executive Kate Nicholls said: “The latest statistics show some positive growth for the UK hotel market at the end of last year, particularly in London, but overall the UK is still lagging behind its European counterparts. A recent report from The Housing, Communities and Local Government Committee recommending a radical reassessment of business rates is encouraging news for the hospitality sector in general. However, with the uncertainty of Brexit and the UK’s future immigration system, plus the threat of an ill-advised Tourist Tax becoming greater, more action needs to be taken to ensure UK hotels remain competitive.

“2019 is a crucial year for the UK hotel market and we will make every effort to ensure the Government fully understands what this sector needs to fulfil its growth potential, continue its significant contribution to the UK’s economic and social wellbeing, and remain competitive within Europe.”

Latest Hotel Data[1]:

–         Monthly results – RevPAR change by country December 2018 vs December 2017

o   Euro average +5.8%

o   UK +6.3%

–         Monthly results – Occupancy Rate change by country December 2018 vs December 2017

o   Euro average +0.7%

o   UK +2.2%

–         Monthly results – ADR change by country December 2018 vs December 2017

o   Euro average +4.5%

o   UK +3.1%

–         YTD results – RevPAR change by country December 2018 vs December 2017

o   Euro average +4.1%

o   UK +2.1%

–         YTD results – Occupancy Rate change by country December 2018 vs December 2017

o   Euro average +0.9%

o   UK +0.6%

–         YTD results – ADR change by country December 2018 vs December 2017

o   Euro average +2.8%

o   UK +1.2%