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Impact of devaluation of the pound revealed in 2017 hotel performance figures

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Impact of devaluation of the pound revealed in 2017 hotel performance figures

Occupancy and room rate growth across UK hotels during 2017 was driven by a record-breaking performance during the first half of the year.

While hotels recorded a relatively flat occupancy increase of 0.5% to 77.4% due to an on-going growth in supply, average room rate (ARR) and revenue per available room (revpar) were up by 3.6% to £92.32 and by 4.1% to £71.49 respectively, according to new figures published by hotel data company STR.

The devaluation of sterling following the June 2016 referendum encouraged an influx of tourists from overseas and a boost in domestic tourism as overseas travel for UK residents became less affordable during the first half of 2017.

However, as the pound increased in value during the second half of the year, occupancy levels decreased slightly for seven months in a row. ADR showed steady growth every month throughout 2017.

STR said that London had been resilient in the wake of multiple terror attacks last year “with minimal impact on hotel performance following each instance”.

Europe-wide, hotel performance across the Euro-zone was positive with a 2.4% increase in occupancy to 71.9%, average daily rate up 3.1% to €110.51 (£96.60) and revpar up 5.6% to €69.47.

New hotel openings to watch for in 2018 >>

September hotel occupancy in London driven down by increase in hotel supply >>

UK hotels post record first half performance >>

 

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