Seven trending hotel news stories that will impact your hotel Revenue Strategy.
1. Brexit Uncertainty Impacts European Visitor Numbers
The continued uncertainty surrounding the UK’s exit from the European Union is having a knock-on effect on the number of European visitors booking to visit the UK, according to data from UKinbound.
New research has shown that Germany has become the main declining market, overtaking France, while marketing such as China and the US are showing growth.
According to UKinbound business confidence amongst UK tourism firms remains low, with only 53% stating they were confident about the upcoming 12 months, a drop of 6% on November and December 2018.
Full story at Travel Weekly.
2. Spain’s Hotels Fear UK Market Decline Over Brexit
Hoteliers in Spain are bracing themselves for a decline in guests from the UK – the country’s biggest source market – if the UK opts for a hard Brexit.
According to the Confederation of Spanish Hotels & Tourist Accommodation (CEHAT), a hard Brexit that would require visas for British visitors or a further devaluation of the Pound Sterling, could see visitor numbers to Spain drop by as much as 15%.
In 2018 Spain welcomed 18 million British travellers, but CEHAT says that number could drop by up to three million in 2019.
Full story at Hotel New Now.
3. Small Gains For Hotels Across Europe
The latest data on Europe’s hotel industry showed small gains across all key metrics for the month of February 2019, compared with February 2018. Occupancy was up 0.1% to 65%, Average Daily Rate (ADR) was up 1.9% to €100.60 and Revenue Per Available Room (RevPAR) was up 2% to €65.34.
Saint Petersburg in Russia fielded the strongest performance, with RevPAR up 9.5% to RUB1,877.22, ADR up 2.6% to RUB4,128.27 and occupancy up 6.7% to 45.5%.
Full story at Hotel New Now.
4. Hotels In Europe Remain Firm Favourites With Investors
Hotels as a real estate asset class remain favourable with both hotel developers and investors, according to panellists at the recent International Hotel Investment Forum (IHIF) in Berlin.
Speaking on a panel titled “Money makes the world go round,” Abhishek Agarwal, managing director of real estate for Blackstone, said demand is still exceeding supply. Fellow panellist Mai-Lan de Marcilly, principal, real estate, at Kohlberg Kravis Roberts, agreed there was growth in Europe, especially in hotels.
Full story at Hotel News Now.
5. Increased Business Rates Hit UK Hotels
An annual increase in business rates in the UK, which came into effect at the start of April, will severely impact the hospitality sector, says UKHospitality.
Introduced on 1 April 2019, the new rates will see UK hotels, hostels and guest houses paying £25 million more in rates while also missing out on £73 million worth of rates relief.
UKHospitality CEO Kate Nicholls has called on the government to reform the rates system and has called for a Royal Commission – a formal public enquiry – into the issue.
Full story at UKHospitality.
6. Profit Decline Continues For UK Hotels
The UK hotel industry has got off to a sluggish start in 2019, posting a second consecutive month of profit decline in February. Gross Operating Profit Per Available Room (GOPPAR) for the month was down 4.4% year on year to £35.44.
On a positive, hotels managed to see a small gain on Total Revenue Per Available Room (TRevPAR), up 0.2% to £123.42 and a similar 0.5% increase in RevPAR to £78.80.
Full story at HotStats.
7. MENA Hotel Construction Contracts Valued At $30 Billion
The second annual AHIC Hotel Investment Forecast, released in conjunction with the annual Arabian Hotel Investment Conference (AHIC), has revealed that hotel construction contracts worth up to US$30 billion will be awarded in the Middle East and North Africa between now and 2023.
Research conducted by Meed Projects in Q4 2018 found that hotel development is most active in the UAE, Egypt and Saudi Arabia. The MENA region has seen more than 800 new hotels worth in excess of US$44 billion built over the past seven years.
Full story at Breaking Travel News.
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This post originally appeared on the Duetto website and is reproduced with their permission.