Covid-19 sparks bleakest UK hotel sector outlook ‘in 50 years’
UK hotel trading performance is expected to plummet next year due to the impact of the coronavirus pandemic on travel and tourism, the latest research showed in the bleakest outlook for the sector in 50 years.
Research by accountancy giant PwC showed that hotel occupancy rates are forecast to be 55 per cent across the UK and could take four years to recover to pre-pandemic levels.
In London, where occupancy levels have sunk to 28.8 per cent this year, visitor numbers are expected to reach 52.4 per cent in 2021.
Regional hotels will fare slightly better with an occupancy rate of 59.2 per cent, assuming there is a vaccine by next summer.
In comparison, London hotels recorded an occupancy rate of 83.4 per cent last year, while levels reached 75.4 per cent in the regions.
Meanwhile, in the capital, revenue per available room could drop by £100 to £28.72 this year. It is expected to recover to £64.81 next year, but it is not forecast to return to pre-pandemic levels until at least 2023.
London has been particularly impacted by a slow recovery in corporate international travel and weak demand for business trips, meetings and events.
Sam Ward, UK hotels leader at PwC, said: “As the UK travel and tourism sector bears a considerable brunt of the impact of COVID-19 this is far from business as usual.
“No previous event has had such a deep and long-lasting negative impact on hotels and there is no quick fix.
“The silver lining is that UK regions should benefit from increased staycation demand in 2021 and coast and country properties offer potential.
“Meanwhile the fall in corporate demand, coupled with the complete lack of sports and music events will see big city hotels suffer disproportionately.”