Another strong year predicted for hospitality in Bath and the Cotswolds in 2018

The hospitality sector in Bath and the Cotswolds will continue to defy national trends – with more rooms, more visitors and more high profile deals expected in 2018.

That’s according to Colliers International, which predicts further benefits for local hospitality from the main drivers for UK hospitality in 2017, namely the weak pound, low interest rates and poorly performing savings accounts, ISAs and pension schemes.

Peter Brunt, a director in Colliers International’s Hotels Agency team, said: “I am confident that Bath and the Cotswolds will continue to punch way above their weight in 2018.

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“Booking.com identifies ‘wellness’ as a strong growth area, with more people than ever expected to unwind on a health and wellbeing trip in 2018.

“Clearly Bath, as a renowned spa town, and the Cotswolds, with its super abundance of serendipitous sports, leisure and outdoor pursuits will both score highly on many people’s wish-lists.”

Peter Brunt, who has sold three dozen pubs, bars and restaurants across the region in recent years, recognised that uncertainties over Brexit would have an impact on the sector, along with rising inflation and higher labour costs as many hospitality workers opt to leave the UK.

“Nationally, commentators are predicting something of a slowdown through 2018 with a gradual easement in the rate of growth,” he said.

“UK and global economic factors helped keep the local sector buoyant through 2017 and although we are also sensing a note of caution creeping in as businesses re-position themselves for 2018, we know from long experience that Bath and the Cotswolds are amongst the most resilient visitor destinations in the UK.”

The predicted national slowdown is partly due to a steep increase in the number of rooms available – with almost 20,000 expected to come on stream in 2018 increasing supply and impacting prices. Bath is among the cities expected to significantly increase its capacity next year.

Julian Troup, head of  UK Hotels Agency at Colliers International, added that increasing demand for UK provincial hotels opportunities was emerging from a diverse range of buyers.

“Buyers in 2018 will include international investors, who are attracted by weaker sterling; private purchasers, enticed by the benefits of a lifestyle opportunity; to corporate investors who are on the lookout for favourable returns and real estate alternatives.

“As long as the ensuing Brexit negotiations do not impact negatively on consumer confidence, and consequently the UK economy, we anticipate no material changes to the level of UK transactional activity during 2018.”

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One Comment;

  1. Laurence Beere said:

    As operators of properties in Bath it continues to be a subject of immense frustration that these statements continue to be made without a basis of accurate factual information. They are often made by property companies to shore up their own statements on where investors should be placing their funds without having made sufficient effort to evaluate how the Bath market has changed.

    Without doubt Bath was once a strong market for hotel performance, however the recent plethora of hotel openings, bringing some 600 new bedrooms into the market in the last 18 months an increase of over 30%, alongside the uncontrolled growth in rooms through Airbnb now offering over 800 new rooms in the last 3 years means that this once profitable market is now one in which there is no growth in occupancy and ADR. As a result operating profits have been hit as rising costs from Business Rates, Food and Beverage costs, let alone the massive shortage in staffing leading to increased wage costs means that margins have become constrained to a point where some business, in particular the small independents face potential failure.To therefore encourage further investment into this market from other operators at the current time is both wrong and shows a complete lack of understanding of the challenges the market is trying to absorb.

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