The forecast predicts that the improving economic and business travel backdrop will drive growth for the hotel sector in both 2015 and 2016, resulting in greater occupancy and higher hotel rates.
London hotels are predicted to see occupancy rates of 84% in 2015, its highest for almost 20 years, which will result in the city’s average revenue per available room (RevPAR) reaching £122 this year and £127 in 2016.
Hotels in UK regions are expected to reach their highest ever average occupancy level of 76% in 2015 and retain this the following year. PwC predicts that hoteliers in the regions will raise rates upwards to drive 5.4% and 5.1% RevPAR gains in 2015 and 2016 respectively.
The pace of new UK hotel supply growth is also expected to rise in 2015 by 4.5% in London and 2% in the regions. The ten cities with the most active room pipelines are London, Manchester, Edinburgh, Birmingham, Aberdeen, Glasgow, Newcastle, Liverpool, Cambridge and Bath.
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