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Hotels in the UK saw RevPAR grow by around 10% this summer as a result of events and international demand, according to data from CoStar.
Edinburgh experienced the highest RevPAR uplift, achieving the strongest occupancy at around 89% while rates continued to see robust growth.
The city’s appeal to overseas tourists coupled with the various events held in the Scottish capital, such as the Edinburgh Fringe Festival in August, has helped sustain above average performance metrics.
Liverpool was the second-best performer this summer and experienced a circa 16% RevPAR uplift. High-profile sporting events such as The Open in mid-July helped bolster occupancy and rate.
Meanwhile, Northern Ireland, Scotland Provincial and London have all seen a robust rebound in foreign tourists which has not abated, with US travellers being a key source market.
With demand returning at a more gradual pace to high-end hotels, given the slower rebound in the groups segment, occupancy has made greater gains this year as trading is starting to normalise with greater business trade too.
Overall, the remainder of the year is expected to be a positive one, with many in the industry having one of their best years in terms of top line performance.
However, as year-on-year RevPAR growth slows given the significant occupancy and average rate improvements seen in 2022, profit margins could start becoming more strained as costs remain high, despite recent falls in inflation.
