New research from RPBI Reports has found that if ‘pub with accommodation’ was a single brand it would be the second largest in the UK, snapping at the heels of Premier Inn. With over 50,000 rooms in 5,700 pubs (approx 1 in 9 of the UK pub market) providing accommodation, this much under- publicised sector of the market has great potential for growth and improvement in standards.
Pubs competing to provide accommodation
Perception is changing about the sector as pubs start to up their game to compete with other accommodation providers. The exclusive consumer survey for the report, showed that 41% of respondees would prefer to stay in a pub against 23% in a branded hotel, 11% B&B, 8% budget hotel, 7% restaurant with rooms, 6% self catering.
The report also says that pubs’ combined turnover from just accommodation could reach £750million, if they were to achieve the average level of occupancy as provincial hotels and their average room rate.
Investment and confidence in accommodation in pubs
For a long time there has been under investment in accommodation in pubs. The tide is now turning with RPBI finding that pub companies are quietly spending money on acquiring, adding and upgrading rooms, resulting in a new phase of growth for the pub industry.
A separate survey of pub owners found that those running pubs with accommodation are upbeat, confident and anticipate growth in the sector.
Almost two-thirds of those pubs owners surveyed said they expected accommodation revenue to grow over the next 12 months, while one-third anticipated income from rooms to be similar to the previous year. Just over half of all pubs are planning to refurbish their rooms within the next year.
From potential to actual revenue
Pubs have always offered accommodation. But, with all the focus on food and other industry issues, this potentially lucrative revenue stream has often been overlooked. That is starting to change and pub owners and pub companies are putting more focus on rooms, there is a real trend for licensees and pub operators seeking to increase their revenue streams through letting room accommodation.
Pubs are investing significant amounts in accommodation, and will need to wait longer to see a return on their money than other, more immediate investments. But, done well, this is a long-term revenue source for the pub industry and a way of maximising the value of properties.
About the Pub Accommodation Report 2013
The Report is the first business report to comprehensively examine and survey the UK pub accommodation market. Pub companies are increasingly investing in both hotels and inns with accommodation to provide an additional revenue stream.
It analyses the current trends and future prospects in this dynamic and increasingly important market, including a data section giving details of every major pub company in the UK that offers accommodation.
The editorial section is packed with opinion and insight from senior pub executives and industry commentators, analysing the current size of the market, examining factors affecting growth, and revealing pub operators’ future plans.
The report includes an in-depth survey of managers and owners of pubs with accommodation, as well as a consumer survey.
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