UK hotel market outlook

The latest update and outlook from the UK hotel sector.

Type Research

Date 05/11/2018

Record revenue per available room levels have helped hotels in the UK maintain strong performance levels in 2018. Whilst growth has slowed, due partly to significant new supply, the wider performance of both London and the Regional markets is encouraging going into the potentially more turbulent waters of 2019.

Highlights include:

  • Record RevPAR in London and Regional UK markets, however growth is slowing
  • Supply growth expected to put pressure on tertiary assets in some markets going forwards
  • Strong investment volumes, especially in the Regional UK market
  • Some yield compression for core assets in prime UK markets.