Hotel Data: RevPAR Growth Expected in 2012
STR Global, provider of hotel data, have released figures showing that revenue per available room (RevPAR) in London and throughout the rest of the country, saw growth in 2011.
Although facing huge challenges throughout the year as the country continued to battle with the current financial climate, demand for rooms grew in the majority of destinations in the UK and STR Global has predicted a further slight growth for 2012.
The managing director of STR Global, Elizabeth Randall, claimed that 2011 had been a good year for UK hoteliers thanks to positive demand growth, but revealed the decision to downgrade the forecast for 2012 had been influenced by the uncertainty in the economy. Nevertheless, the market data provider still estimates RevPAR growth figures of 1.9 per cent in London and 0.6 per cent across other regions of the country.
The figures released by STR Global showed that RevPAR growth in London increased by 8.4 per cent in 2011. There had been a fear that events that occurred in the capital and across the country, such as street protests and the August riots would have had a significant impact on hotel performance, but this did not materialise. In fact, one occasion where the demand for rooms that would have been expected to be evident, the Royal wedding week in April, actually saw a RevPAR decline of 19.4 per cent.
Hotel Data for the Regoins
Regional UK RevPAR also saw an increase in 2011 of 1.5 per cent, with the growth being accounted to improved occupancy, which saw a modest increase across all market classes. This included from 1.2 per cent in the Luxury and Upper Midscale market, to 3.5 per cent in the Midscale and Economy market.
Regionally, cities enjoyed RevPAR development because of a mixed growth between rate and occupancy, with Reading reporting increases of 7.6 per cent and Harrogate also being amongst the best performers with a rise of 6.0 per cent thanks to increased occupancy. In terms of average daily rate (ADR) figures affecting RevPAR, Brighton (4.9 per cent) and Oxford (4.6 per cent) were the markets with the strongest ADR growth regionally.
The highest occupancy rates were achieved at Heathrow Airport with figures of 82.7 per cent, followed closely by York and Edinburgh who each enjoyed an occupancy figure of 80.1 per cent. Bath, who finished 2010 with the highest ADR, also ended 2011 in the same position sitting at £87.33.
With the events that are due to be staged in the UK during 2012, including the Queen’s Diamond Jubilee celebrations and the London Olympic and Paralympics, thousands of visitors are expected to land on these shores. This is sure to boost RevPAR figures, so hoteliers can expect to enjoy another successful year. However, the uncertainty of the economy, the problems in the Eurozone and looking at the global financial picture as a whole, it is right that conservative estimates for growth have been forecast.
Nevertheless, it is sure to be another interesting year for the hotel industry with twists and bumps along the way.