UK occupancy increases, but summer surge now over
UK occupancy increases, but summer surge now over
21 SEPTEMBER 2020 7:34 AM

The United Kingdom has enjoyed a summer of warm weather and pent-up demand, but now that schools have reopened, the question is what awaits hoteliers for the next two quarters and beyond.

LONDON—Hotel performance data from the United Kingdom for the week ending 13 September could be a strong indictor for how difficult, or less difficult, the next couple of quarters might be with the summer leisure demand gone, according to STR director Thomas Emanuel.

(STR is the parent company of Hotel News Now.)

In a video overview of United Kingdom hotel performance, Emanuel said hotel occupancy in the country is expected to decline “steadily.”

Performance data shows U.K. hotels continue to have the highest occupancy on Saturday nights, with 60% occupancy reported for 12 September at hotels that have reopened and are reporting data.

On the other hand, average daily rate for the week declined year over year by 35%, the “strongest decrease in ADR since the week of 6 July, which was the first full week hotels across the country could reopen.”

Unsurprisingly, declines in ADR have paralleled drops in revenue per available room, with hotels reporting RevPAR at between -52% and -70% year over year for the week.

Schools have reopened, which might result in a fall in hotel demand. More autumnal weather could do the same, Emanuel said.

Another weighty concern is the almost complete absence of convention, meetings and group business.

Emanuel added performance in the U.K. largely mirrors that of other European nations.

He said U.K. hotels did report “some recovery of occupancy from the prior week, (but) how this will play out in the coming weeks with (positive) cases (of COVID-19) rising and potentially more local lockdowns remains to be seen.”

For more of Emanuel’s insights into U.K. performance data, and especially the new methodology of “economic occupancy,” watch the video below:

Editor’s note: The video included in this article was filmed by Thomas Emanuel, director at STR, on 16 September and edited and produced by CoStar Group. HNN is a division of STR, a CoStar Group company.

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