Hotels in the UK posted their highest-ever occupancy rates, average daily rate (ADR) and revenue per available room (RevPAR) rates for any H1. 

Compared with the first six months of 2016, the UK recorded a 1.7 percent increase in occupancy to an actual level of 75 percent, a 4.7 percent increase in ADR to GBP 89 and a 6.5 percent increase in RevPAR to GBP 67.

The devaluation in the pound sterling following the June 2016 Brexit vote has resulted in strong tourism growth for the UK, which has in turn benefited the country’s hotel sector. According to recent figures published by VisitBritain, total visits to the UK were up nine percent between January and May 2017. Arrivals from Europe were up just five percent in the first five months of the year, with arrivals from North America increasing by 22 percent, and visits from the rest of the world up 25 percent.

VisitBritain’s findings also show that visitor spending increased by 14 percent for the January-May period, indicating that many travelers are taking advantage of the more favorable currency exchange rate. This aligns with the country’s hotel rate growth, which was particularly high in London, up 6.2 percent to GBP 144 in H1. The UK capital continues to post performance growth, despite experiencing terror attacks in March and June.  

UK H1 Performance and visits - STR news

Comparing London with Regional UK (excluding London), ADR grew 3.2 percent in H1 to an actual level of GBP 69 — a record level for the first half of the year. Occupancy rose 1.2 percent in H1 to 74 percent — also an H1 record. In addition to hosting several high impact events in H1, including the Manchester International Festival, the Royal Highland Show in Edinburgh, and the Champions League Final 2017 in Cardiff, the pound devaluation has also resulted in more domestic holiday travel within Regional UK, as travel outside the country is now more expensive for UK residents.  

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