Hotels wait patiently for recovery.
Like many others, the UK hotel industry has been impacted significantly by the Covid pandemic. In 2019, official figures (published by market data provider Statista) showed an average 75.4% occupancy rate in UK hotels (excluding London). Occupancy rates in 2020 were down more than a half to 37.6%. Predictions for 2021 show an average occupancy rate (excluding London) of c59%, an increase of nearly 60% on 2020 but still well down on 2019.
London hotel occupancy increased slightly in February compared to January, but coronavirus restrictions continued to bite. Figures from research agency STR show that London occupancy levels are currently at 23.3% down by 69.5% on February 2020. Average overnight rates in London were at £57.52 during February, down 57% on last year. RevPAR (revenue per available room) levels show January as the lowest on record.
Many hotel operators are facing substantial cashflow pressures and have been for some time. With the significant drop in revenue resulting from travel restrictions previously profitable businesses are struggling to stay afloat. As a result, many supply and contract companies who provide goods and services to the hotel sector continue to suffer too.
Hospitality Rescue has been helping struggling business owners for over 20 years with sensible FREE advice. If your hospitality business is experiencing problems, contact us FREE on 0800 9700539. Chat to one of our experienced advisers and we will see how we can help you!