PwC predicts bright outlook for Birmingham hotel sector

ACCOUNTANCY and advisory firm PwC’s latest hotel forecast reveals the improving economic and business travel backdrop will drive growth for the Birmingham hotel sector in 2015 and 2016.

The firm’s UK hotel forecast reveals that Birmingham ranks 3rd in the top ten UK cities with the most active room pipelines.

As well as new supply in Birmingham in 2014, demand was also strong, with Birmingham seeing double-digit (11%) revenue per available room (RevPAR) growth in 2014.

PwC expects demand to remain high in 2015 due to footfall driven by Birmingham’s position as the most popular destination for meetings, conferences and business events in the UK outside of London – and key events such as the Ashes at Edgbaston and the Rugby World Cup at Villa Park

Projects such as the new Grand Central retail development at New Street Station are also expected to make Birmingham more attractive to visitors.  

The hotel forecast also highlights the UK regions – including the Midlands – will see more strong growth in 2015 and 2016. The pace of new regional supply growth is set to pick up in 2015, with growth above the long term average.

Ian Wall, hospitality and leisure expert at PwC in the Midlands, said: “The UK regional hotel sector faces plenty of challenges, but we are optimistic in its ability to compete, adapt and succeed; especially as the regional economy continues to improve following the financial crisis.

“Consistent with other regional cities, Birmingham hotels saw positive growth in revenue per available room during 2014. This is set to continue with the region moving up the ranks of European cities for investment prospects and continuing to benefit from its share of sporting and other events including the established seasonal attractions such as the world famous German Christmas Market.”