According to a recent survey by leisure services and hospitality consulting organization HVS, the UK hotels market is experiencing a decline in growth for the first time in years that may be attributed to a recent decrease in value for the euro and increased competition from other European destinations.
Though it has also lessened, trading across the UK’s hotel market is still seeing positive growth.
While average regional RevPAR in the UK sector increased by 21 percent during the third quarter of 2014, growth declined to 5 percent by the second quarter of 2015. Of the 12 hotels surveyed by HVS, the average growth totaled 4 percent—the lowest noted since the first quarter of 2013.
“While we have seen a significant rise in the market since the downturn, we are now seeing a return to more normal growth, and hoteliers are having to work rates to achieve RevPAR increases,” says HVS chairman Russell Kett.
Due to a nearly flat occupancy rate, London hoteliers have been unable to make up for this loss by increasing rates, though an influx in the hotel conference market has augmented RevPAR, leading to Glasgow seeing the UK’s highest increase in RevPAR during the second quarter of 2015, rising 14 percent.
