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UK Market Spotlight


In the latest updates on the regional market performance of the hotel industry in the United Kingdom, we see year-to-date data from May for 2023 compared to the same period in 2022 and 2019, according to HotStats’ monthly Hotel Benchmarking reports.


TrevPAR (Total Revenue per Available Room): TrevPAR has seen an impressive year-on-year growth of 40% in 2023, surpassing the levels achieved in 2019 by 2%.


Occupancy (Occ): While there is still a gap in occupancy compared to 2019, there has been a significant improvement of 15 percentage points compared to the previous year reflecting rising demand levels.


TrevPOR (Total Revenue per Occupied Room): TrevPOR has shown a moderate increase of 7% in 2023 boosted by ADR increases but declines in F&B revenues have been a drag on this measure.


ADR (Average Daily Rate): The Average Daily Rate has experienced a solid growth of 10% in 2023, which exceeds slightly current inflation rates.


F&B (Food and Beverage): The F&B segment has faced a slight decline of 5% in 2023. However, compared to 2019, there has been a positive growth of 56% in the Conference and Banqueting (C&B) segment.


Spa: The Spa segment has recorded a decline of 6% in 2023 possibly reflecting a cautionary approach to discretionary spend by consumers.


Cancellations and Golf: Cancellations and Golf have remained relatively flat.


Labour: Labour rates initially stabilised towards the end of 2022, but they began to rise again in Q1 of 2023 due to inflation and living wage reviews.


F&B Profit: While F&B profit has seen a slight increase, it remains 10 percentage points down compared to 2019, highlighting the ongoing challenges faced by hoteliers in this segment.


Winter Challenges and Utilities: Despite significant rate growth, the winter season proved to be challenging for UK hoteliers, with utilities emerging as a key issue. Utilities accounted for 9% of total revenue, reflecting the impact of rising utility costs.


GOP (Gross Operating Profit): Gross Operating Profit has increased by 3 percentage points in 2023. However, it remains 4 percentage points lower than the levels achieved in 2019, reflecting the increases in labour and utility costs in particular.


UK market spotlight 2019-2023

In summary, the United Kingdom hotel market has shown promising signs of recovery in 2023 compared to 2019. There has been significant growth in TrevPAR, ADR, and C&B, indicating improved revenue generation. However, challenges in F&B, Spa, and labor costs continue to impact profitability. The rise in utilities costs and the gap in GOP compared to 2019 highlight the ongoing recovery process for the UK hotel industry.

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