UK Hotel market continues to grow in 2019
According to Christie & Co, hotel supply showed healthy increases in 2018, with many major international British cities seeing strong pipelines in the year ahead.
Despite the fear of growing operation costs, and many concerns over the accessibility of staff recruitment in post Brexit Britain, the UK hotel market showed encouraging signs of growth in 2018. This growth is set to continue into this year, according to the latest annual report by Christie & Co.
The report also forecasted that hotel growth in London and other UK regions would steady this year, with a growth of 0.6% in London, and 0.7% in the regions respectively, between this year and last.
Supply also shows healthy increases within the hotel market in major British cities, such as Manchester, Belfast and Edinburgh, seeing strong pipelines in the year ahead.
International investment continues to be a key driver in the hotel market. Christie & Co identified capital from across the globe, particularly European investors who accounted for 50% of UK investment last year. Average prices also remained economically positive throughout 2018, with hotels seeing a 4% increase.
The latest reports are bound to mention Brexit, and this particular study identified Brexit as a “pivotal factor” for businesses within the hospitality sector in the UK, which employs around 400,000 EU migrant workers. Christie & Co said any changes as a result of Brexit to immigration policies, “could have a notable impact”.
Looking to the year ahead, the report outlined Christie & Co’s market predictions. The main points being:
- flat or negative profit growth for some operators due to higher costs
- a potential increase in distressed positions in the second half of 2019
- and new developments in technology being implemented to improve customer service and productivity.
Managing director of hospitality at Christie & Co, Barrie Williams said: “The UK hotel market remains an attractive investment proposition and appeals to a wide range of buyers.”