Tuesday, January 21, 2025 The UK and European hotel industry showcases resilience, thriving on strong performance, investor confidence, and robust deal activity despite economic challenges. Hotel Sector in the UK and Europe Thrives Amid Economic Challenges Despite economic uncertainties, the hotel industry across the UK and Europe is showcasing remarkable resilience, driven by robust performance in select regions and strong deal activity. The UK’s hotel market is expected to remain solid, with London continuing to dominate as a prime destination for investors.
Its strong market fundamentals, high occupancy rates, and consistent growth in RevPAR (revenue per available room) underscore its appeal. In 2018, London’s hotels reported a 2.9% increase in RevPAR, further strengthened by high-profile transactions like the £80 million ($104 million) sale of Grange St Paul’s Hotel.
Regional cities in the UK, such as Manchester, Birmingham, and Edinburgh, are also gaining traction. These cities benefit from rising tourism and business activity, which have resulted in growth rates that often surpass London’s performance. This trend indicates that investor interest is expanding beyond the capital, diversifying the market.
Across Europe, geopolitical tensions and economic slowdowns in certain markets, including Germany and France, have not hindered the overall progress of the sector. Countries like Portugal are standing out, with Lisbon recording an impressive 10% growth in RevPAR .
