Hotel Dashboard - UK Hotel Market Recovery, July 2021
Following the re-opening of hotels to all guests, month-on-month TRevPAR growth in May more than doubled in Regional UK, whilst London hotels saw TRevPAR rise to its highest level since the start of the pandemic.
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The positive impact of restrictions for hotels easing, was unequivocal, with a significant boost in occupancy performance during weekdays and higher peaks at weekends.
For prime UK leisure hotspots, the summer of 2021 has the potential to be one of the strongest on record, with a surge in forward bookings and trading expected to outperform 2019 performance.
Historically, the peak period in RevPAR performance for regional UK occurs between June to September. The ability to trade during the summer months without legal restrictions being imposed, will have significant positive gains in terms of driving revenue.
- Regional UK Golf & Spa hotels produced a standout performance far greater than its peers, with almost a three-fold increase in its monthly TRevPAR performance, rising to £118.
- Despite TRevPAR growth more than doubling in Regional UK, the road to recovery for the wider UK hotel market is considerably more profound. TRevPAR across London averaged just 19% of its historical performance and regional UK averaged 38%, versus the same period in 2019.
- For the first time since March 2020, all hotel classes, throughout the UK have achieved double-digit total departmental Gross Operating Income. However, for full-service hotels, the absence of traditional market segments and the impact this change is having on food & beverage revenue streams is evident. As such, the importance of converting Rooms income or generating new revenue sources is critical to the bottom line.
