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Hotels in eight out of 12 UK cities have recorded RevPAR (revenue per available room) beyond pre-downturn levels, according to the Hotel Bulletin for Q2 2014.
The report, compiled by HVS, Zolfo Cooper and AM:PM, said hotel performance in London and the regions has continued to improve in Q2 2014 with average RevPAR increasing 10% year-on-year.
The report also found that the four remaining cities in the 12 specified have almost reached these levels, too. For the third consecutive quarter all the cities reviewed recorded RevPAR growth.
London saw a hike of 4% year-on-year with hotels outside the capital seeing an 11% rise. Growth was driven by average room rate improvement in all cities except Newcastle. Belfast recorded the highest year-on-year RevPAR improvement (28%), with Leeds at 16% and Glasgow at 12%.
Hotels in Aberdeen, Bath, Edinburgh and London are now trading in excess of 2008 RevPAR levels, with those in Belfast, Birmingham, Liverpool and Newcastle trading at pre-downturn levels.
Tim Smith, co-author and director at HVS London, said: “Reaching this benchmark is a cause for optimism and will give certain hoteliers the confidence to invest time and money in expansion as rate is driven growth is likely to result in probability improvement.”
The report also found that in the first half of this year some £1.9bn worth of hotel transactions have been completed, with over £411m of these were in Q2. The quarter saw year-on-year transaction levels rise by over £250m.
