MONTH IN REVIEW
MONTH IN REVIEW
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ACCOLADES
Edinburgh
revealed as
number one UK
‘hot spot’ for hotel
development
The latest UK hotels market data has
revealed Edinburgh as the number one
‘hot spot’ for hotel development.
The data is from global real estate
advisor, Colliers International’s third UK
Hotels Market Index (UKHMI), which
analyses 34 locations across the UK
to determine the ‘hot spots’ for hotel
development and acquisition across
the country.
Edinburgh topped the Index, moving
up four places in 2017 since the previous
year with its high position mainly
attributed to strong occupancy levels and
average daily rate (ADR) growth in 2017.
This resulted in a four-year upward
revenue per available room (RevPAR)
trend combined with constrained
new supply.
Bath ranks second, moving 10
places up, as a result of strong ADR
performance, combined with a lower
active pipeline, with Belfast positioned
third, improving its ranking by a
significant 16 spots.
London also climbed back into the
top 10, mainly because of the capital
city’s recovery in ADR performance for
2017. The capital continues to be the
largest market and in terms of RevPAR,
it is still the top performing market.
Ranking City
1 Edinburgh
2 Bath
3 Belfast
4 Cambridge
5 Bristol
6 Cardiff
7 Plymouth
8 London
9 Oxford
10
Glasgow
8
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ECONOMIC WEATHER
PwC forecasts
weaker growth
for next two years
The latest figures from PwC’s UK hotels
forecast show a more modest outlook
for 2018 and 2019, thanks to the impact
of Brexit uncertainty and the effect of a
weak pound wearing off.
The outlook for London remains
positive but growth is expected at a
much slower pace, PwC forecasts
occupancy growth of 0.4% this year
and 0.3% next year as weak demand
continues and increased room supply
weighs down growth.
Average Daily Rate growth will also
be tempered with a 0.2% gain in 2018,
some way off the 4.3% seen last year.
This will take the average daily room
rate (ADR) to £149, still a record in
nominal terms with more robust growth
of 1.6% expected in 2019 taking ADR up
to £151.
Revenue per available room
(RevPAR) is forecast to see only 0.6%
growth this year compared to 4.6% last
year taking RevPAR to £122. In 2019, a
1.9% gain is predicted taking RevPAR
to £124.
Commenting on the latest forecast,
Liz Hall, head of hospitality and leisure
research at PwC, said: “The boost to
inbound holidays from the weak pound
has started to fizzle out and ongoing
uncertainty around Brexit and the
fragile economy is a recipe for some
tough year-on-year comparisons for
the next few months.”
Hotel occupancy in the regions is
forecast to see marginal growth of
0.6% in 2018 and 0.5% in 2019, taking
occupancy levels to 77%.
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TRAGEDY
Spanish
tourist killed
in suspected
carbon monoxide
poisoning at
London hotel
A Spanish man has been found dead
and another is fighting for his life after
a suspected carbon monoxide leak at a
four-star hotel in Kensington, London.
According to reports Marcos Cervera,
34, was found dead in his room at the
Mayflower Hotel on Monday, while his
friend Esteban Garcia, 37, who was
staying in the same room, was rushed
to Chelsea and Westminster Hospital
where he remains in a critical condition.
A Metropolitan Police Service
spokesperson told The Independent:
“Police were called at 13:48hrs on
Monday, 5 March to a hotel in Trebovir
Road, Kensington following reports of
a male found deceased and another
person taken ill.
“Officers attended with London
Ambulance Service and London Fire
Brigade colleagues also in attendance.
A male was pronounced dead at the
scene. At this early stage, the death is
being treated as unexplained.
“Another male in his 30s has been
taken to hospital where he remains
in critical condition. An investigation
is being undertaken by Kensington &
Chelsea CID in conjunction with the
Environmental Health department.”
The spokesman added that initial tests
at the boutique hotel indicated a high
reading of carbon monoxide, though the
investigation has not yet concluded.
Reportedly two police officers who
were called to the hotel were also
admitted to hospital after reporting
feeling dizzy and sick.
All other guests were evacuated
and moved to a nearby hotel after
being screened by the London
Ambulance Service.
April 2018