29 APRIL 2019
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A surge in room supply, slowing global and UK economic growth and ongoing uncertainty relating to Brexit is expected to provide a challenging environment for hotel trading in the UK this year, a new report says.
The latest UK Hotels Forecast Update from top auditor PriceWaterhouseCooper (PwC) shows London should still boast high occupancy levels, but high room supply means only marginal occupancy growth this year at 0.3%.
However, Average Daily Rate (ADR) is forecast to continue to see growth with an uplift of 1.4% in London for the next two years taking the rate up £2 to £151 in 2019 and £153 in 2020.
PwC head of hospitality and leisure David Trunkfield said: “London saw stronger than expected demand in the last three months of 2018 which transformed the year for the capital.
“Weekend demand remains strong and the weak pound continues to support tourism and hotels, However, there are worries that tourists, especially from the EU, may adapt a “wait and see” attitude towards visiting the UK in 2019.”
On the regional outlook, Trunkfield noted January 2019 data from hotel industry tracker STR indicated the regions were already seeing softer demand and “we expect this to continue as high supply additions continue to affect hotel trading”.
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