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  • BDO UNITED KINGDOM - Hotel Britain Report 2016

Hotel Britain Report 2016

13 April 2016

Original content provided by BDO United Kingdom

Hotel Britain is BDO's definitive report on UK hotels performance. Focussing on national and regional performance, the report highlights the underlying trends for key markets. Full of detailed analysis, expert commentary and with a new predictions feature, this edition of Hotel Britain is the guide to what 2015 was really like for our hotels sector. 

The report has been compiled from the responses of a representative cross-section of 649 hotels comprising 82,165 rooms. The results are grouped according to geographic location. We break down the performance of hotels in key locations across the country, and analyse both London and the regions in terms of average room rate.

London hotels’ performance remained relatively flat during 2015. Occupancy was up 0.2% to 82.8%, returning to 2013 levels. AARR continued to grow at a similar rate to 2014 with an increase of 0.9% to £149.79, resulting in a rooms yield of £124.00, up 1.1%. Despite the modest figures, London hotels have fully recovered their pre-recession performance and again demonstrated their resilience. 

Regional hotels continued to experience strong growth in 2015 although at a slower pace compared to 2014’s stellar results with occupancy up by 1.1% to 75.9% setting a new record in occupancy levels. However, AARR was the main driver for regional hotels. Average room rate was up 4.0% to £63.15. As a result of the increases in occupancy and AARR, regional UK hotels’ rooms yield grew by 5.1% to £47.94 in 2015.

Hotels in the regions have experienced the fifth consecutive year of rooms yield increase and high rates of growth overall since 2013 and continue to outperform their London counterparts. 

Read our report to find out more about how UK hotels have performed over the last year and our expert analysis on what this means for the sector; our top 5 predictions for the coming year; and our examination of key areas including tourism, transactions, development trends and the winners and losers on a region by region basis.

Click on the download button below to view the full report.