According to the latest HVS Hotel bulletin, the impact has been a 2% decline in London’s occupancy compared with Q2 2015, with a slight fall in average room rates. Newcastle recorded another quarter of decline, down 4%, as the combined effects of a 10% increase in hotel supply over the past 12 months and strong comparators last year affected business. Aberdeen saw a 24% decline year-on-year, as hotel occupancy continues to suffer from the city’s exposure to the oil and gas industry.
However, performance in Birmingham improved, with growth of 16%, while hotels in Bath saw occupancy rates up 11% year-on-year, due to a boost in international tourism.
"Whilst this is significant in the short term, London is, and will remain, a huge magnet for inbound tourism. The longer term future of the capital’s hotel sector is still positive, even when taking into account the new hotels in the pipeline and the potential impact of the Brexit vote," said HVS chairman Russell Kett. "Performance has always been very location-driven, with localised supply and demand issues having an impact on hotels’ operating performance."
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