The UK hotel sector could take four years to return to pre-pandemic levels, with hotel occupancy rates in 2021 set to remain flat at 55% across the country, new research has found.
According to a report published on the Boutique Hotelier website, 29 October, the PwC’s UK Hotels Forecast 2020-2021 has found that trading performance is set to decline ‘significantly’ in 2021 as hospitality begins to recover from Covid, with occupancy rates for London at 52.4% and the regions at 59.2, with the forecast based on the assumption there will be a vaccine by next summer. Occupancy rates in 2019 were 83.4% and 75.4% respectively.
A predicted slow recovery in corporate travel, meetings and events looks particularly bleak for London’s hospitality industry – with the inevitable knock on effect for textile care businesses – where the overall revenue per available room is forecasted to fall significantly in 2020 to £28.72, £100 less than in 2019.
Betting on a vaccine becoming available next year, it is expected to recover to £64.81 in 2021 but the suggestion is that occupancy, ADR and RevPAR will not return to 2019 levels until at least 2023.
The UK regions are expected to fare better than the capital in 2021, with or withot the advent of a vaccine, as it is likely a stronger staycation market will remain a fixture for some time.