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11 Aug 2017

Weak pound contributing to increase in room revenue for UK hotels
BY Matthew Campelli

The increase in visitors was helped by a 40 per cent surge in hotel rooms year-on-year

The increase in visitors was helped by a 40 per cent surge in hotel rooms year-on-year

A weaker pound and a number of high-profile events has contributed to UK hotels experiencing increased revenue per available room in the first six months of 2017.

Hotels in Edinburgh, Cardiff and Belfast saw double-digit growth year-on-year from rooms revenue per available room (RevPAR) over the first half of 2017.

London also experienced and 8 per cent uplift as international visitors took advantage of the weak pound following Britain’s decision to exit the European Union last June.

According to hotel consultancy HVS, 7,500 new hotel bedrooms opened across the country during H1 2017 – the highest number since 2012 and 40 per cent up on the same period in 2016.

Budget brand Premier Inn opened two new hotels in Q2, while the number of independent and boutique hotels continued to grow, particularly in London.

The mew 252-room, five-star The Ned was opened by Soho House in May and a 214-room Hoxton Hotel was established in Shepherd’s Bush.

A number of luxury hotels for London – such as the Armani on Admiralty Arch, Raffles in the Old War Office and the redeveloped Cadogan Hotel – are also in the pipeline.

“While there will always be a strong demand for branded hotels, we are certainly seeing a growing appetite among hotel guests, primarily those in London, for something a little different,” said HVS chair Russell Kett.

“Boutique hotels in quirky buildings with a strong stamp of personality and a more unusual proposition are becoming very fashionable among discerning customers.”

He added: “This activity confirms that London is still a magnet for a high-end global hotel brands and demonstrates that the hotel sector is adapting to customer demand and the need to stay ahead of the game by offering something on-trend and edgy.”



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