Hotels across the UK recorded strong RevPAR in Q2, taking levels back to where they were before the economic downturn.
In the latest quarterly Hotel Bulletin for Q2 2014, hospitality establishments in eight out of 12 UK cities saw performance levels continue to improve with average RevPAR increasing 10% year-on-year.
The report, compiled by HVS, Zolfo Cooper and AM:PM, highlighted that for the third consecutive quarter, all cities reviewed recorded a RevPAR growth.
London saw a hike of 4% year-on-year, with hotels outside the capital seeing an 11% rise. Growth was driven by average room rate improvement in all cities except Newcastle.
Belfast recorded the highest year-on-year improvement, with a 28% rise in RevPAR, Leeds followed (16%) and then Glasgow (12%).
Hotels in Aberdeen, Bath, Edinburgh and London are now trading at levels in excess of 2008 RevPAR levels, with those in Belfast, Birmingham, Liverpool and Newcastle trading at pre-downturn levels.
“Reaching this benchmark is a cause for optimism and will give certain hoteliers the confidence to invest time and money in expansion as rate driven growth is likely to result in profitability improvement,” commented co-author Tim Smith, director, HVS London.
“Consistent and strong growth is encouraging and is also likely to leave investors in a confident mood.”