Hospitality leaders optimistic about the long-term future of the UK hotel market
Cambridge has been named as the most attractive UK city for hotel investment in 2021, with Oxford and Edinburgh ranking second and third, respectively, according to Deloitte's European Hotel Industry Survey 2020.
Compared to 2020 levels, over a quarter of the 114 senior hospitality figure respondents expect revenue per available room (REVPAR) growth to be greater than 9% in London in 2021, with 21% expecting the same REVPAR growth for UK regions over the same period.
However, half of the respondents believe that a No Deal Brexit will lower the attractiveness of London for hotel investment and more than half believe the UK investment cycle will take more than two years for performance to normalise.
“The hotel industry has been one of the hardest hit by the outbreak of COVID-19. However, as vaccination developments look increasingly promising and consumers think ahead to 2021 travels, senior hospitality figures are more optimistic about the year ahead. Indeed, many expect profitability to rise between now and 2025," says Andreas Scriven, head of hospitality and leisure at Deloitte.
“The restrictions on international travel this summer saw many UK consumers switch their holiday plans to domestic staycations. UK destinations also remain attractive for hotel investment, with Cambridge overtaking Edinburgh to the top spot this year, the latter moving to third place behind Oxford.”
