UK hotel occupancy climbs to 65%, study finds

Hotel occupancy is up on 2020, but still behind pre-pandemic figures

UK hotel occupancy rates have climbed for the third consecutive month to 65% in July, showing an improving picture as restrictions lifted and the sector started to reopen following the third lockdown, according to RSM’s Hotel Tracker.

The data, compiled and produced by STR and analysed by RSM, shows the average occupancy rate has risen from 30% in April 2021. 

The staycation market saw the highest average occupancy rates in Wales at 80%, followed by England and Scotland at 64%.

It found that London was more reliant on international and business travel, sitting at 49%- bringing the UK average down.  

The average room rate followed a similar trajectory with July seeing a three-month UK high of £89. This remains behind the £110 average room rates in July 2019. 

Wales was the only region to exceed pre-pandemic rates at £78 in July, compared to £67 in 2019. 

In addition, it revealed that average revenue per available room was £57 in July 2021, up from £19 in 2020, but still behind pre-pandemic levels at £89.  

Chris Tate, head of hotels and accommodation at RSM: said: “It’s great to see hotel occupancy increasing as the UK economy opens up; and it’s encouraging that levels are already outstripping last summer’s reopening following the first lockdown. 

“Increased competition and staycation demand is slowly driving room rates up, but oversupply in London is hampering the wider UK recovery as low occupancy levels in the capital depress the national picture.” 

“Hoteliers will be hoping the opening of travel corridors to the US and changes to self-isolation rules for the double jabbed will drive a further increase in demand to support the post-pandemic recovery.” 

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