The first six months of 2017 produced the UK hotel industry’s highest occupancy, average daily rate (ADR) and revenue per available room (revpar) for any first half on record, according to STR.
Compared with the first six months of 2016, the UK recorded a 1.7% increase in occupancy to an actual level of 75.1%, a 4.7% increase in ADR to £89.33 and a 6.5% increase in revpar to £67.12.
STR analysts note that the devaluation in the pound sterling following the June 2016 Brexit vote has resulted in strong tourism growth for the UK, which has in turn benefitted the country’s hotel sector.
According to recent figures published by VisitBritain, total visits to the UK were up 9% from January to May 2017. While arrivals from Europe were up just 5% during the first five months of the year, arrivals from North America increased 22%, and visits from the rest of the world were up 25%.
VisitBritain’s findings also show that visitor spending increased 14% for the January to May period.
This figures align with the country’s hotel rate growth, which was particularly high in London, up 6.2% to £143.57 during the first half of the year. The UK capital continues to post performance growth, despite experiencing terror attacks in March and June.
Comparing London with regional UK, ADR grew 3.2% during the six month period to an actual level of £69.46—a record level for the first half of the year. Occupancy rose 1.2% to 73.6%—also a record.
In addition to hosting several high impact events, including the Manchester International Festival, the Royal Highland Show in Edinburgh and the Champions League Final 2017 in Cardiff, the pound devaluation also resulted in more domestic holiday travel within regional UK with travel outside the country being more expensive for UK residents.