A growth in budget hotel rooms in the UK is expected to drive down rates at boutique hotels, according to STR Global.
Speaking today (May 13) at the Boutique and Lifestyle Hotel Summit in London, STR Global business development manager Joe Stather said 30% of the European hotel pipeline was slated for the UK.
Much of this new supply will be in the lower-end segment, which will put hotel rates under pressure – especially at hotels outside of London [regional UK], said Stather.
"Overall in regional UK, 24,000 hotels rooms are expected to come online between now and 2016," he added, pinpointing Manchester as a key development area.
However, overall there is a positive outlook for hotel performance, with RevPar growth across all major cities in the UK in March 2014 compared to the same month the year before.
More on this coming soon…