Eurovision and The Open help drive growth in Liverpool’s hotel sector
Supply and demand have both increased in Liverpool’s hotel sector in the year to date, new figures show.
The sector saw a 74.9% occupancy rate in the past 12 months, with last May’s Eurovision Song Contest generating the most successful month of the year for the industry, new data collated on behalf of the city’s Accommodation BID by Liverpool BID Company has revealed.
In the year to date supply in the hotel sector has increased by 5.9%, while demand has increased by 9.1%.
Occupancy in Liverpool has been gradually strengthening since the pandemic, but the establishment of the UK’s first operating Accommodation BID in 2022 has been designed to improve the Average Daily Rate (ADR) and Revenue per Available Room (RevPAR) to reinforce the sector for the long term.
It has also established a subvention fund, helping the city to attract major events and conferences which benefit the hotel and serviced accommodation sector.
The 12 month ADR stands at £93.21, while the 12 month RevPAR is at £69.81. This represents a 6.2% increase of the ADR over the past 12 months, 4.2% against an historical average, and a 9.6% increae for the RevPar over the past 12 months, with a 2.8% historical average.
Of the 10,182 hotel rooms in the city, occupancy over the past year is at 74.9%, covering the luxury and upper upscale rooms, upscale and upper midscale and the midscale and economy.
Economy rooms are leading the way in occupancy terms, fitting in with a national trend. Luxury and Upscale Rooms have seen an increase in rates, driving a growth in pricing.
Another 860 rooms are expected to be delivered over the next two years, an increase of around 12%, the highest since 2018.
The past year has seen approximately 220 rooms delivered, including some larger assets such as the Novotel Paddington and the Municipal Hotel Liverpool.
Some sizeable projects are still to be delivered, with Maldron Park Lane opening later this year as Dalata continues its expansion across the country. This deal, part of a £37.5m development, is Liverpool’s stand out for the year.
Despite the cost of living crisis, from a consumer perspective, major events like the Eurovision Song Contest and sporting events like The Open, created strong demand within the hotel sector.
Summer festivals have also contributed to increasing demand. A key driver of Liverpool’s success is its strength within the domestic market with weekend leisure helping the sector perform well. Midweek demand is returning, however, suggesting a return to business travel.
The ABID-supported subvention fund, which supports the return of the Labour Party Conference to the city’s ACC next week, continues to work to attract sector-specific and corporate events to support the sector in the future.
Bill Addy, Liverpool BID Company CEO, said: “We have seen the hotel and serviced accommodation sector show incredible resilience over the past five years.
“The Accommodation BID is designed to help strengthen that resolve and help the sector to grow, which we are seeing early signs of.
“Major events and Liverpool’s leisure industry have supported in a strong 12 months. We know that the cost of living, and any economic jolts will be felt by the industry, which is why we believe investing in events to come to the city helps to make sure it is on the map, but also helps the whole hospitality industry benefit from the city’s increased footfall.”
