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Hotels Forecast 2021 - 2022

An emerging recovery

Encouraging signs for hoteliers

After the most volatile trading period since benchmarking began, the PwC Hotels Forecast 2021-2022 reveals the green shoots of recovery as demand returns. Though performance is not expected to return to pre-pandemic levels by Q4 2022, there are finally encouraging signs for hoteliers.

By the end of 2022, the forecast is that revenue per available room (RevPAR) in London will return to between 43% and 86% of pre-pandemic levels. In the regions, this figure is higher with the forecast between 64% and 100% of pre-pandemic levels.

“I believe with the right planning and strategy, hotels across the UK can look forward to significantly better trading over the next 12 months.”

Sam Ward, UK Hotels Leader

This year, to help account for the unpredictable path of the pandemic, we have modelled three scenarios: slow, moderate and strong rebounds. You can explore each of these in the full report.

Hotels Forecast in numbers 2022 - Moderate rebound scenario

Occupancy, ADR Average Daily Rate, RevPar Revenue Per available room

What to expect for 2022?

The speed of recovery will be the major issue for the sector in 2022. Driven by factors outside of the sectors’ control, the pace and size of the return of tourism, international and domestic business and events will determine the speed and extent of the recovery.

Planning finances for Q1 2022 will be key. The first quarter of the year has always been difficult for hotels without any major holidays to drive demand and with tax bills due at the end of March. Normally, hotels rely on strong results from December to see them through. However, that trading period is unlikely to recover to pre-pandemic levels for 2021.

The sector must plan accordingly, manage cash flow and put in place the right strategies to ride out this tricky quarter.


Contact us

Samantha Ward

Samantha Ward

UK Hotels Leader, PwC United Kingdom

Tel: +44 (0)7923 289644

David Trunkfield

David Trunkfield

UK Hospitality, travel and leisure Leader, PwC United Kingdom

Tel: +44 (0)7764 235446

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