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Revenue per available room (RevPAR) has increased marginally for hotels across the UK in the second quarter of 2015, but has slowdown when compared with last year.
This is according to the latest HVS, AlixPartners and AM:PM Hotel Bulletin for the second quarter (Q2) of 2015, which cited the weakening euro, a downturn in long haul visitors and strong competition from other European cities as factors in the slowdown.
The report found that in Q2 2015 hotels across the UK reported an average regional growth of 5%. This was a decrease in growth from Q3 2014 where hotels reported a RevPAR increase of 21%.
The bulletin said that this coincided with evidence that occupancy was levelling, or even falling, in a number of cities across the UK.
In the survey, 10 of the 12 UK cities reviewed experienced a rise in RevPAR, but across the board the average growth of 4% was the lowest recorded since Q1 2013.
London saw an increase in RevPAR of 3%, while the top performer during the quarter was Glasgow, which saw a 14% rise in RevPAR, boosted by £75m worth of new conference business this year.
Aberdeen was the only regional city to see a RevPAR decline, which according to the report was a direct result in the drop in oil price and the scaling back of investment plans in the city. Occupancy across hotels in the city fell by 13% during the quarter.
Russell Kett, chairman at HVS, said that while there has been a significant rise in the market since the downturn, the industry is now seeing a return to more normal growth and hoteliers are having to work rates to achieve RevPAR increases.
Meanwhile, the bulletin also said that the serviced apartment sector has gained momentum over the the last three years, which it said seems to be on the point of transitioning from a niche market to mainstream.
