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The UK hotel industry enjoyed a good end to the summer with occupancy and average daily room rates up when compared with August last year, according to the RSM Hotels Tracker.
The occupancy of UK hotels increased from 78.9% to 81.3% in August year-on-year, albeit still behind pre-pandemic levels of 83.3%.
London occupancy reached 84.5%, up on 79.9% last year showing a 5% annual increase.
Average daily rates (ADR) of occupied rooms were up in the UK and London when compared with August 2023, at £153.71 and £221.09.
As a result, gross operating profits (GOP) of UK hotels were also up from 35.1% to 36.8% year-on-year, and from 37.7% to 40.6% in London, which is 2% and 3% respectively when compared with the same period last year.
These increases, especially in London, were partially driven by the last few dates of Taylor Swift’s Eras Tour at Wembley Stadium.
Chris Tate, head of hotels and accommodation at RSM UK, said: “It’s promising to see the hotel industry enjoying a strong end to the summer with occupancy, room rates and profits all up on last year.
“The welcome boost was helped by a jump in visitor volumes with London Heathrow and Manchester Airport both announcing a 5.5% and 6.6% increase in passengers; and it’s no coincidence that Taylor Swift’s Eras Tour landed back on UK soil in August to boost demand.”
He added: “For hotels looking to expand or upgrade existing properties, the appetite for investment is there. Hotel deals are dominating M&A activity in the travel sector highlighting real momentum and an opportunity for growth across the industry.”
