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Revenue per available room (RevPAR) increased by 3% in the third quarter (Q3) of 2015 for UK hotels compared with last year, although this was the lowest growth since Q1 2013.
The latest Hotel Bulletin from AlixPartners, AM:PM and HVS found the top performers in Q3 benefitted from hosting international sporting events such as the Rugby World Cup and the Ashes test matches.
Cardiff recorded the highest RevPAR increase of 17%, while Birmingham came in second with growth of 12%.
For the third consecutive quarter Aberdeen was the worst performer, with RevPar declining to 22% due to strong new supply and the lack of recovery in the oil industry. Despite this, the report said that new hotel investment plans indicates investor confidence in the long term.
Glasgow and Liverpool also recorded Revpar decreases of 10% and 3%, respectively.
Graeme Smith, managing director at AlixPartners, said: “The UK market has enjoyed a continuous period of RevPAR growth. The rate of growth slowed this quarter but this is heavily influenced by sporting events.
“There will be a focus on performance in Q4 to see if this reduction in growth rates continues.”
Meanwhile, the report said that branded hotels are set to increase their footprint in the UK as 2,500 bedrooms out of 3,000 that opened in the UK during the quarter were branded.
It said that while only 16% of the active pipeline is independent, 84% is branded properties. According to the report, “this reflects investors, developers and lenders opting for the relative safety of branded investments”.
