The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

The UK Hotel Sector Has Performed Well Lately - But There Are Headwinds

Peter Hemple looks at the meteoric rise of Airbnb and why hoteliers are starting to worry

The annual turnover of the UK's hotel sector increased by 11%, from £16.5bn in 2014/15 to £18.3bn in 2015/16, (to the year ending 31st March 2016), according to commercial lender Ortus Secured Finance (OSF).

The firm explains that this rise is part of a longer trend, as the turnover of UK hotels has risen steadily over the last five years, up by 27% from £14.4bn in 2010/11. The rise in turnover is in part driven by the continued success of budget hotel groups such as Travelodge and Premier Inn. At the other end of the market boutique hotels have benefited from increased investment, attracting and increasing spend per guest.

OSF says that UK hotels have increasingly been targeting visitors from non-EU countries such as the US and Asia, who typically stay longer and spend more.
Post-Brexit fall in sterling prompts more overseas visitors
OSF adds that the fall in the value of sterling after the EU referendum could also boost the turnover of UK hotels. The firm says that the falling pound prompted more to choose staycations instead of overseas holidays as well as encouraged more international visitors.

However, the long term effect on the hospitality sector and general economy after Brexit may mean that hotels have to work harder in order to attract visitors.

Want the full article?