UK hotel profit soars as Brits holiday at home
The top 100 UK hotel groups saw profit break the £1bn barrier last year as the weak pound pushed Brits to holiday at home.
Profit rose 83 per cent year-on-year from £583m as overseas tourists were also encouraged to visit the UK.
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Revenue was up 1.5 per cent from £6.8bn to £6.9bn in 2019, according to the latest research from law firm Boodle Hatfield.
Visiting the UK has become cheaper for foreign tourists and the weak exchange rate has seen UK citizens choose breaks in cities such as London, Edinburgh and York rather than Barcelona or Berlin.
“UK hotels are thriving as the country fast becomes a staycation nation,” Boodle Hatfield real estate partner Rajeev Joshi said.
The budget hotel sector is now growing faster than the rest of the market. Turnover at the five leading chains increased seven per cent in the year, from £1.7bn to £1.9bn.
The “staycation” trend is being driven by millennials that are attracted to affordability, city centre locations and the environmental benefits of avoiding plane travel.
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Joshi added: “Improving hotel standards and consistently warmer summers mean that staycations in the UK are becoming increasingly popular.
“Twenty years ago, a “staycation” would have been chosen mainly on a cost basis but it’s now an increasingly fashionable choice.”
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