Christie & Co’s latest UK hotel market snapshot reveals positive performance across top ten cities in 2023
Specialist hotel property adviser, Christie & Co has launched an updated UK Hotel Market Snapshot 2023, providing a full year analysis of key trading and development indicators for the UK’s top ten cities and hotel markets in 2023. The top ten includes London, Bristol, Birmingham, Manchester, Liverpool, Newcastle, Glasgow, Edinburgh, Cardiff and Belfast.
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The report reveals that RevPAR growth in 2023 surpassed both 2022 and pre-pandemic 2019 levels across all ten markets, albeit to varying degrees, placing 2023 performance at a premium of between 14% and 50% over 2019.
According to the report, the staycation trend began to balance out in the second half of 2023, as domestic travellers increasingly opted to travel abroad. However, occupancy levels were maintained due to the volume of government asylum seeker contracts in place.
The snapshot also shows that ADR increases were well absorbed by travellers, allowing hoteliers to pass on cost premiums to maintain a healthy conversion profit.
According to the report, despite strong trading transactional activity slowed and yields softened across the top 10 markets in 2023 due to the cost of borrowing and pressures on hotel P&L and development costs, thus affecting all parts of the investment equation.
Pierre Ricord, Head of Consultancy – Hotels at Christie & Co comments, “In this concise overview of how the top 10 UK hotel markets fared in 2023, we take stock of the UK's undeniably strong post-covid recovery, reaching new trading heights in the face of many headwinds beyond hoteliers' control. Against a unanimously robust trading backdrop, however, we highlight a more challenging transaction market. With a sense that the 'worst is over' and that the market will finally rebound this year in terms of transactional volume, we share our views on the positive outlook for the markets.”
To read the full report, click here: https://www.christie.com/news-resources/publications/uk-hotel-market-snapshot-fy-2023/
For further information on this press release, contact:
Bronte Hughes, Corporate Communications Manager
M: 07721 420 656 or E: bronte.hughes@christie.com
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