More than 7,500 hotel bedrooms opened in the UK during the first half of 2017 – the highest figure for the first six months of the year since 2012.
The number of openings is also 40% higher when compared to the same period last year, according to the Q2 2017 Hotel Bulletin.
The figures are slightly behind those forecast in the Q4 2016 Hotel Bulletin that suggested 20,000 hotel bedrooms would open in the UK during 2017, representing a supply growth of 3.3%, which is more than double the average net increase of 1.6%.
The budget sector has continued to account for a significant proportion of new hotels and is expected to continue to do so in the future, with 43% of all openings over the next three years expected to be budget properties.
Budget hotels currently make up 33% of the current hotel supply, with the four- and five-star sectors accounting for 31% and 5% of the market respectively. The four- and five-star sectors are forecast to make up 32% and 9% of all new openings between now and 2020.
Premier Inn, the UK’s largest hotel brand with 67,000 bedrooms across more than 760 hotels, is highlighted in the report as continuing its “unyielding brand roll-out”. Key openings for the Whitbread-owned brand in Q2 2017 included a 613-bedroom hotel at London Heathrow Airport Terminal 4 and the fifth Hub by Premier Inn with 389-bedrooms in London’s King’s Cross.
Premier Inn intends to have 85,000 bedrooms open by 2020.
While branded hotels account for a large proportion of new openings, the report said that there was “notable development activity” of independent hotels in the second quarter of 2017, the most significant being the 252-bedroom the Ned. Opened within the former headquarters of Midland Bank in the City of London, the Ned is owned by Soho House & Co and the American-based Sydell Group.
Compiled by AlixPartners, AM:PM, HVS and STR, the Q2 2017 Hotel Bulletin also noted that hotels in London and Manchester had bounced back from the terrorist attacks earlier this year significantly stronger than their counterparts in Paris and Brussels, which have faced similar incidents.
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