Brexit vote sees UK hotel rates soar to record high in July

UK room rates increased 5.7 per cent to hit a record high of £131.21 in July, according to the latest poll of full-service hotels from HotStats.

HotStats CEO Pablo Alonso put the record high down to an uplift in staycations since the Brexit vote, as well as an increase in international visitors to the UK. Room occupancy was also up by 1.7 per cent to 87.1 per cent.

The robust demand levels were led by the leisure segment, which accounted for 36 per cent of accommodated room nights this month, well above the annual average of 31.9 per cent for the 12 months to July 2018.

Growth was also supported by increases in the achieved rate in the commercial segment, including the corporate (up 3.5 per cent) and residential conference (up 11.9 per cent) sectors.

“Soaring demand levels, which have primarily been led by the leisure segment have helped hotels to drive top line revenues in this month over the last couple of years,” said Alonso.

“The strength of demand has been attributed to an uplift in staycations since the Brexit vote, as well as an increase in international visitors to the UK. The improvement will be to the delight of hotel owners and operators as July presents an opportunity to drive revenue and profit which previously did not exist.”

The growth in top and bottom line performance for hotels in the UK in July was mirrored and exceeded by hotels in London, with room occupancy soaring by 4.7 per cent to 92.1 per cent. In addition, achieved average room rate increased by 6.7 per cent year-on-year to hit a high of £193.90.

“Wimbledon, the Hampton Court Flower Show, the Pride Parade and the British Summertime Festival in Hyde Park, coupled with buoyant domestic and international visitor numbers, helped drive record profit performance for hotels in London in July,” said Alonso.

Despite the overall increase in visitor numbers to the UK, hotels in leisure-led Stratford-upon-Avon saw room occupancy increasing by 1.8 per cent to 81.8 per cent, accompanied by a 2.4 per cent decline in achieved average room rate to £92.24