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Hotel sector growth expected in 2014

10 | 09 | 13

The hotel sector is expected to grow in 2014, according to a report from PwC.

Members of the food industry will be pleased by this news, as restaurants form an important part of hotels these days.

PwC states that January was the only month in 2013 so far to experience falling figures. The average daily rate (ADR) has improved and will be close to £60 by 2014, while the sector has not experienced better results since 2009.

An upturn of 1.8 per cent is also charted for revenue per available room (RevPAR) in 2014, suggesting more money is being spent per person or, at least, per room. RevPAR will go up to £42.44 - the biggest the figure has been in six years.

Current forecasts suggest 19,500 new rooms will be available by the end of 2014, according to figures it cites from AM:PM Hotels Database. While many of these will be budget rooms, it is not yet known how many restaurants or catering equipment services will develop alongside this upturn.

A lot of the competition, as a result, will be in the budget level of pricing. Head of hospitality and leisure research for PwC Liz Hall said: "It's no wonder prices and independent operators are feeling the heat with this increase in supply, especially as a large chunk is in the budget segment.

"Recent research from BDRC Continental shows budget operator, Premier Inn and Travelodge are now the top two players in both the business and the leisure travel segments - the first time this has been recorded."

As budget options increase, the report also states London's luxury segment has seen improvements in ADR but occupancy has declined. Over all, it expects London's ADR to fall by 2.3 per cent in 2013, followed by a rise of 1.5 per cent next year. Rates will rise to £318.19, £1 off 2012's record figures.ADNFCR-16001031-ID-801635843-ADNFCR

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