Our research of the hotel industry market and key statistical data provides an outlook for UK hotels based in London and the regions separately.
- Room Occupancy:
Continues to perform very well. In London 2018 room occupancy was at 83.3% with an ADR (Average Daily Rate) of £148.80 and RevPAR (Revenue Per Available Room) of £124.00. In the regions hotels in 2018 room occupancy was 76.1% with ADR of £72.10 and RevPAR of £54.80. (source STR 2019)
- 2020 outlook for the regions:
Going into 2020 is challenging due to an increase in rooms into the market with Manchester adding 800 new rooms in 2018 and an expected further 3000 rooms in the next 2 years including the Dakota Deluxe and the Moxy Manchester in 2020. In Liverpool circa 500 rooms were added in 2018 and a further 1300 are scheduled for 2019 / 2020 (source PWC).
- The chain game:
The UK hotel market is large currently around 700,000 rooms with around 50% being independent. The chains continue to expand the branded budget hotel sector. Whitbread recently announced its opinion that the UK could have headroom for an additional 40,000 rooms.
supply is increasing, but future demand may not match it so as a hotelier its more important than ever to ensure your property is delivering the best experience and value for money.
- The lenders:
The high street lenders continue to be cautious in the independent hotel sector, whereas specialist lenders have a strong appetite to grow their lending book within the hotel sector and be flexible with a wide range of products including loans, mortgages, bridge loans, exit loans, equity investments and mezzanine loans.
- Things to consider:
competition for rooms bookings will increase, the large chains are investing. Does your property need renovating? Could your property be expanded to increase room availability? If you are considering an exit could your property value be increased and maximised?
For an independent view for your independent hotel talk to Specialist Property Finance to discuss your options without obligation. We can help you get the funding you need from specialist lenders that want to work with you in the long term and deliver key beneficial outcomes including:
- Reduce your interest rates and monthly payments.
- Fund the development of your property.
- Release equity.
Please email email@example.com to discuss your individual needs and requirements.
Specialist Property Finance are a leading UK Broker specialising in property funding from specialist property lenders including challenger banks and new to market lenders that want to increase lending to the hotel sector specifically.