Study reveals slowdown in hotels sector

NORTH West hoteliers saw a record 2014 and while growth has started to slow so far in 2015, hotels in the region are still experiencing good levels of demand, according to new PwC analysis.

Average performance metrics are still strong in the region compared to many other UK cities, but the pace of growth in the first seven months of 2015 has been mixed.

Liverpool saw a nominal increase in occupancy levels of 0.7% and Manchester a 2.1% increase. This could be in part to a slowdown in demand following some big ticket events in 2014 such as The IFB, WWI commemorative giants and The Open Golf Championship.

Last year also saw two Manchester football teams in the Champions League compared to one this year, which will have impacted the number of international fans visiting the city for matches.

However, as a tourist magnet and business centre, hotels in Liverpool and Manchester were still over 80% full in July 2015, ahead of other major cities such as Birmingham and Belfast.

And although occupancy rates have slowed since last year, the region’s cities have seen increases in average daily room rates (ADR). Both Manchester and Liverpool have seen 6% growth in the first seven months of 2015, increasing to nearly £72 and £68 well above the UK average growth of 3.4% and taking rates higher than the average for the UK Regions as a whole, £66.

Ian Marsden, PwC’s North West property and construction leader said: “While occupancy rates may be tailing off following some major sporting, business and cultural events last year, this in line with the national picture as the falling Euro continues to be a key issue.

“Relatively though the region’s hotel have enjoyed a strong start to the year. Full hotels and higher rates translates into strong RevPAR (revenue per available room) growth (a key industry metric) of 7% in Liverpool and 8% in Manchester for the first seven months of the year – in line with the UK regional average. We expect continued but steady growth the next 12 months as the economy continues to recover.”