Member Article

Regional hotel sector rebounds

The regional hotel sector has been enjoying continuously strong demand this year, following the same upward trajectory as regional economies.

According to PwC, occupancy and average daily rates (ADR) across the regions have improved quicker than expected in 2013.

ADR is expected to reach almost £60 in 2014, the best result since 2009 - but still below the 2008 peak.

Bill MacLeod, incoming senior partner, PwC Newcastle, said: “The economy has put the fizz back into the UK hotel sector with a return to confidence and stronger demand. Despite ADR levels still reflecting continuing consumer and corporate price sensitivity, it’s a very positive story. Continued economic recovery should mean sustained and enhanced prospects for hoteliers in 2014.

The conference and meeting market remains below past peaks.

Mr MacLeod added: “In Newcastle and the other UK regions, pockets of oversupply still remains with budget chains adding to hoteliers’ pricing pressures, but many cities have performed very well this year.

“But it does mean a more crowded UK hotel landscape. For the consumer, new supply is progress, with new brands, more choice and more price competition.”

This was posted in Bdaily's Members' News section by Tom Keighley .