UK RevPAR up 9% in December
Although Liverpool hotels did not feel as much of a hit, average rates declined by 7% during New Year’s Eve with some losses being slightly offset by occupancy gains
Revenue per available room in the UK rose 9% in December with New Year’s Eve seeing the highest prices across hotels in the UK, according to data from CoStar.
Hotels saw the highest average rates during New Year’s Eve in 2023 as prices reached £165.
Hotels in Edinburgh experienced the highest year-over-year RevPAR growth across the major UK markets as it grew by approximately 12%, as rates reached £284, and occupancies hit 92%.
London RevPAR was only slightly behind Edinburgh in absolute terms, while revenues saw a 9% uplift over the previous year.
Six of the major cities experienced RevPAR declines on an annual basis, largely due to losses in pricing.
Birmingham, Newcastle, and Manchester stand out as the underperformers as RevPAR across these locations experienced a drop of over 10%.
Although Liverpool hotels did not feel as much of a hit, average rates declined by 7% during New Year’s Eve with some losses being slightly offset by occupancy gains.
The outlook for UK hotels for 2024 looks broadly positive but the divide between international cities like Edinburgh and London may become more prominent as these destinations benefit from greater international visitation.
Regional cities largely reliant on domestic demand, especially leisure-led business, could face challenges in driving average rates should consumers become more price sensitive and selective over their experiences.
