PwC ‘s latest forecast for UK hotel performance expects growth across the board for the 2014 outturn and into 2015. Overall UK hotels are expected to see a5.6% gain in RevPAR (revenue per available room) in 2015 (to £67.39), driven by a 4% rates growth (to £86.49) and a 1.6% increase in occupancy (to 78%). This is underpinned by a continued strong recovery in the Provinces as well as strong growth in London, especially next year.
The sector however still faces plenty of challenges and geopolitical uncertainty. New products and business models can sometimes represent a challenge for existing businesses. Every so often a profound change to the established way of doing business can leave some businesses ill prepared for the new order. A case in point that is relevant to the UK hotel sector is the potential impact of so called shared economy models. In this edition of the UK Forecast we provide an insight into this growing global phenomenon and provide our views on what steps can be taken to ensure the impact on the hotel industry is minimised.