More growth expected for hotels

By Melodie Michel contact

- Last updated on GMT

Hotels throughout the UK will continue to enjoy growth in the New Year
Hotels throughout the UK will continue to enjoy growth in the New Year

Related tags: Rugby world cup, Hotel

Hotel performance both in London and in the regions is expected to remain strong until the end of the year, according to HotStats’ first Hotel Market Profitability Forecast.

The report, released jointly by HotStats and e-forecasting.com, expected an increase of 6.5 per cent and 14.4 per cent in total revenue per available room (TRevPAR) and gross operating profit per available room (GOPPAR) respectively for regional UK hotels by the end of the year.

In comparison, London will experience a slower pace of growth, with TRevPAR up 1.3 per cent and GOPPAR up 1.8 per cent by the end of 2014.

These positive results will continue in 2015, both for TRevPAR and GOPPAR across the country, the forecast added.

“HotStats has a long-standing commitment to deliver total revenue and hotel profitability as the ultimate hotel metrics. We are very excited about the new level of hotel market intelligence insights that our partnership with e-forecasting will allow us to bring to our current and future customers as well as to the industry as a whole,” Pablo Alonso, general manager of HotStats, said about the launch of the report.

STR Global

Meanwhile, STR Global’s preliminary November data for London showed a 3.3 per cent increase in RevPAR, 1.3 per cent growth in occupancy (to 84.4 per cent) and 2 per cent uplift in average daily rate (ADR) to £147.41.

These increases pushed RevPAR up 3.3 per cent to £125.08.

Additionally, the London hotel market experienced growth both in supply (3.1 per cent) and demand (4.4 per cent).

STR Global also expects a 3 per cent increase in RevPAR in 2015.

“Demand growth picked up in November, showing the fastest increase in this measure of any month in 2014 so far,” said Elizabeth Winkle, managing director of STR Global.

“Our RevPAR forecast for 2015 remains positive in anticipation of the Rugby World Cup towards the end of the year and due to the confidence in a growing UK as well as European economy in the coming years.”

STR Global will release November 2014 results in two weeks.

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