UK Hotels Update
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PwC’s UK Hotels Update reviews the first half of 2011 and analyses the key trends to impact the hotel sector in the rest of 2011 and 2012.
In this Update:
London soars ahead in Q2
Hotels delivered somewhat volatile trading data so far this year. London demand dipped in the beginning of Q1, but a strong March, a sparkling April and a spectacular May suggest London’s juggernaut run isn’t ready to stop just yet.
Slow recovery for provinces
In the provinces speeding up the pace of recovery is proving tougher and rates declines have dampened growth. Many operators saw modest gains in the second half of 2010 slip away in early 2011. The rest of the year will see a varied regional outlook for the UK with some regions faring less well than others.
Factors influencing rest of 2011 and 2012
Consumer confidence remains fragile; there is further possible fallout from the ‘Arab Spring’ and much uncertainty around global commodity prices; supply too may dampen hotel performance pre and post the Olympics. Looking ahead hoteliers could have their work cut out, with inbound business travel proving essential to driving recovery.
