Hotels in the UK recorded strong performance increases in 2017, although growth levels started receding in the final months of the year, according to data from STR.
United Kingdom, 2017 vs. 2016
- Occupancy: +0.5% to 77.4%
- ADR: +3.6% to GBP92.32
- RevPAR: +4.1% to GBP71.49
The UK’s year-end performance figures were mainly the result of a record-breaking first half, as STR reported in August. Following the results of the June 2016 referendum to leave the European Union, the British pound was devalued considerably against the dollar and the euro. In the short term, this proved to be very positive for UK hoteliers, as the favorable exchange rate attracted an influx of international tourists, and provided a boost in domestic tourism as traveling to other countries became less affordable for UK residents.
Performance figures for the final months of 2017 showed that the “Brexit effect” appears to be waning, as the pound continues to climb back in value. While occupancy levels decreased slightly for seven straight months to end the year, ADR (average daily rates) grew year over year in each month of 2017.
London hotels posted a 4.1% increase in ADR for the year, with relatively flat occupancy that was heavily affected by strong, continued supply growth. The UK capital also showed resilience in the wake of multiple terror attacks in 2017, with minimal impact on hotel performance following each incident.
