26 February 2018
A number of the agents who are active in the hotel industry have published market reviews of 2017 and indicated their views on the trajectory of the market this year. Some common items emerged:
- RevPAR growth in 2017 of over 4% was supported by weak sterling which reduced costs for overseas visitors and discouraged foreign travel.
- Increased stock and weaker business travel forecast to reduce RevPAR growth this year.
- UK is still a popular destination for overseas investment especially from the Far East.
- Debt is generally available but often from non-traditional sources.
- Institutional investors are starting to invest.
- Technology and innovation are of ever increasing importance.
- Transactional activity was strong in 2017 and is predicted to remain strong this year.
- Staff shortages exacerbated by Brexit and other cost pressures will become increasingly apparent in 2018. Latest figures show 130,000 EU citizens leaving the UK in the year to September 2017. Net migration to the UK from the rest of the EU was still 130,000 in this period but this is the lowest level of net migration for five years according to the Office for National Statistics.
Overall, therefore, we look forward with confidence to having a busy 2018.