Zolfo Cooper, HVS and AM:PM have released the Hotel Bulletin for Q1 2014, including demand commentary using data points from HotStats™ and this quarter providing analysis of quarterly transaction values and potential investment indicators in the UK hotel market.
Key themes
- continued widespread RevPAR and profitability growth in London and the regions – though greater in the regions (+11%) than London (+6%). The challenge is for hoteliers to increase rates after recession years of chasing occupancy – success is and will bolster bottom line;
- budget and higher-end hotels dominating active pipeline whilst three star development remains out of favour;
- lower transaction values than Q1 2013, as expected, but a number of significant deals expected through 2014; and
- a focus on Leeds, where the traditionally corporate market is being bolstered by investment in the city’s leisure offering.
The Hotel Bulletin reviews demand and supply trends in the UK market, the new-build pipeline and considers notable transactions that have completed in the past three months. This data is analysed by location to reflect the diverse nature of the UK market.
Demand data covers Occupancy, Average Room Rate and RevPAR, comparing data points from HotStats™ in order to draw conclusions on the state of the UK market. Supply data compares the numbers of rooms for each location from the AM:PM database in order to examine hotel completion trends. In addition, pipeline data considers the number of rooms in development that have a confirmed opening date from AM:PM.
For queries regarding Hotel Bulletin or Zolfo Cooper’s services in the leisure and hotel sectors, please contact Graeme Smith or your local Zolfo Cooper representative.
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