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70% of regional hoteliers anticipate post-Covid recovery by 2023

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A new survey has found hoteliers remain positive about the market in the UK and Ireland, with 70% of participants anticipating hotels outside London to recover to pre-COVID levels of financial performance by 2023.

The findings come from the latest Hotel Operator Survey for the UK and Ireland, conducted by global real estate services firm Cushman & Wakefield.

Given continuing challenges and uncertainties around international travel, London is viewed as having a potentially slower recovery, not reaching pre-COVID levels of financial performance until 2024.

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However, all of the UK’s top hotel markets are seen as more attractive than 12 months ago, following a better than anticipated economic recovery.

In terms of ranking of interest from hotel operators, London continues to top the list, attracting international interest despite extensive supply.

Other markets such as Dublin and Edinburgh also remain in high demand, standing second and third respectively. Strong regional markets such as Oxford, Cambridge, Bristol and Brighton are significantly more attractive in the eyes of operators compared with a year ago, led by incredibly strong business since the re-opening of hotels in July, linked to the large numbers of UK residents holidaying at home.

Perhaps more surprising is that hoteliers believe that gross operating profit (GOP) will recover across all markets by 2025, faster than many have predicted. This belief, despite the ongoing impacts of the pandemic, rising labour costs and shortages, is bolstered by an expectation that more efficient business models and better use of technology could counterbalance these negatives.

Richard Candey, Head of Investor and Developer Services for Cushman & Wakefield’s EMEA Hospitality team, said: “While the interest in UK markets among hotel operators remains strong, there is increasing polarisation of the commercial terms these operators are willing to offer and where they are willing to go the extra mile.

“In order to find the right operating partner for the owner, it is ever more critical to have in-depth understanding of each operator’s preferences and latest shifts in their expansion strategies, which is the objective of this survey and part of our daily work.’’

Tags : coronavirusCovidregional hotelssurveyUK hotels
Eamonn Crowe

The author Eamonn Crowe

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