Poor UK hotel data unlikely to improve under new rules
Poor UK hotel data unlikely to improve under new rules
01 JUNE 2020 8:57 AM

The United Kingdom hotel industry’s dismal performance numbers could continue with news that the government has imposed tough quarantine rules for all arrivals, said STR’s Thomas Emanuel.

LONDON—With the United Kingdom hotel industry continuing to see stagnant low metrics and a lockdown that is slowly being lifted, hoteliers’ woes are set to increase now that the government has imposed strict quarantine rules for all incoming arrivals, Brits included.

Speaking during his weekly analysis of U.K. hotel year-over-year performance for the week of 18-24 May, STR director Thomas Emanuel said occupancy levels have not changed over the last seven days. Neither have average daily rates, which declined 41% nationwide. (STR is the parent company of Hotel News Now.)

“The only positive we can take from this weekly figure is that we are not seeing ADR declines continue to accelerate,” Emanuel said.

Revenue-per-available-room declines for the same period range between 81% and 89%, he added.

“This has become very much the new normal during this period of lockdown, but not figures I will ever get used to presenting,” Emanuel said.

In terms of month-to-date performance up to and including 24 May hotel occupancy for some of the country’s major markets are hovering between 15% (Edinburgh) and 20% (London). Aberdeen led the charge, relatively speaking, with occupancy of 40%, and Emanuel added that the markets that are performing marginally better generally have long-stay guests and essential workers. Dublin’s hotels reported only 11% occupancy through the first few weeks of May.

Emanuel also highlighted the government’s recent introduction of a 14-day quarantine period for the majority of people arriving into the U.K., which he said would mean far fewer guests would choose to come to the country, and far fewer Brits would decide to holiday abroad due to not wanting to go through the isolation process when they return.

He added that approximately 80 hospitality firms, including several hotel firms, have written to the government to express concern over the move and challenge the ruling.

“The industry does seem to be fighting back, though,” Emanuel said, acknowledging that any relaxation would be within the realms of safety and the health of the general population.

For more of Emanuel’s insights into U.K. performance data, please watch the video below:

Editor’s note: The video included in this article was filmed Thomas Emanuel, director at STR, on 27 May and edited and produced by CoStar Group. HNN is a division of STR, a CoStar Group company.

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