Around 20,000 new hotel bedrooms are set to open in the UK during 2017, according to new figures published in the Q4 2016 Hotel Bulletin from AlixPartners.
The figure represents a supply growth of 3.3%, which is higher than the average net increase of 1.6% recorded over the past 20 years. However, this does not allow for any hotel closures, which will inevitably occur.
London has consistently headed the UK’s increase in hotel supply, having recorded a net growth of 17% over the past five years, compared with 5% across regional England.
While Scotland and Northern Ireland have also recorded net growth during the period of 8% and 2.5% respectively, Wales has experienced a net decline in supply of nearly 2% since 2012. Limited supply in the principality has been overshadowed by hotel closures, with Cardiff hotel development lagging behind most other major UK cities.
The Q4 2016 Hotel Bulletin, which is compiled in conjunction with AM:PM, HVS and STR, noted that the UK hotel sector currently has around 14,200 properties with 625,000 bedrooms. The numbers refer to businesses with 15 or more bedrooms.
Last year saw an additional 14,600 bedrooms added to the UK hotel stock, while 4,000 bedrooms were removed through closures, representing a net growth of 1.7%.