What has driven revenue growth in the hotel sector? How is the sector evolving to meet the demands of those seeking greater flexibility, value and a more experience focused lifestyle? How can hotels manage challenges such as increased cost and Brexit?
PKF hotelexperts have collaborated with MIPIM UK, and have been asked to play an active role in the 2018 MIPIM conference - the leading property summit for all key stakeholders in UK real estate. PKF hotelexperts will be providing two panel discussions and a series of project showcases and pitching sessions at the conference. They have published the white paper alongside hospitality data company STR in preparation for this.
The report examines the importance of hospitality in the UK real estate sector and how hotels in the UK have enjoyed a buoyant decade, with an average of over 4% annual growth in revenue per available room (RevPAR) since 2010. This has driven occupancy rates up, and consequently increased the Average Daily Rate (ADR). However, the report warns that Brexit is causing uncertainty in the sector due to shifts in demands, and expects demand to wane in the wider real estate sector, which will trickle-down to affect hotels.
The report also explores the growing trend of ‘alternative accommodations’ in their various forms, including private members clubs, student accommodation and hostels. It details how the accommodation sector is evolving to meet the demands of those seeking greater flexibility, value and more experience-focused leisure and business trips, and how real estate investors are responding to this.
The paper highlights the challenges and opportunities the UK hospitality sector face going forward. It explores how the industry needs to balance supply and demand, how increasing hotel costs and cost of construction labour threaten growth and how increasing inbound arrivals can provide great opportunities for investors.
Full report can be accessed here: http://www.pkfhotels.com/media/10040513/mipim-uk-hospitality-white-paper-2018.pdf