Hotels in the U.K. remain closed other than to frontline personnel, but government plans now hint hotels could reopen on 4 July, which would be a boon to the industry.
LONDON—STR director Thomas Emanuel said the main change in the analysis of U.K. hotel performance for the week ending 7 June is that any long-stay and keyworker business has been joined by those newly entering the U.K. but now having to stay in those hotels of a minimum of 14 days in quarantine. (STR is the parent company of Hotel News Now.)
The numbers now show occupancy hardly changing from its current lows, with a 10% premium at weekends over weekdays, and average daily rates that continue to fall in year-on-year terms, this week in question seeing a 44% drop over that period, Emanuel said.
Revenue per available room remains flat, he added, stating that now the U.K. industry is looking to 4 July, not to celebrate the U.S.’s Independence Day but because that is the first date the U.K. government has indicated might be when hotels are allowed to reopen.
“We will await that date with interest and eagerness,” Emanuel said.
That development might see business being booked now, but Emanuel said business on the books as analyzed by STR’s Forward STAR product does not show a bright picture, especially in London, where it remains below 10%.
One of the reasons for this is that occupancy for the four months July through October is negative, that is, Emanuel said “there are still more cancellations than new bookings.”
He said these figures sadly show that the U.K. hotel industry is unable to point to a recovery, but it will be interesting to see how that might change in the future.
Watch the video below for more of Emanuel’s insights into U.K. performance data.
Editor’s note: The video included in this article was filmed by Thomas Emanuel, director at STR, on 10 June and edited and produced by CoStar Group. HNN is a division of STR, a CoStar Group company.