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With Route Out of Pandemic Outlined, UK Positivity Increases

Hotel Performance Dire at Start of Year, but Lockdown Success Likely To Help
Hotel News Now
March 2, 2021 | 3:17 P.M.

There have been no discernible improvements in United Kingdom hotel performance in the past month as the entire country remains in lockdown, but there is hope as between 20 and 25 million people have received at least the first of their two COVID-19 vaccinations.

Thomas Emanuel, director at STR, said U.K. hotel performance remains incredibly weak. STR is CoStar’s hospitality analytics firm.

He said in terms of occupancy, two traits stand out.

“Firstly, we are largely back to where we were during the first lockdown in spring last year. Secondly, the weekday occupancy premium exists again, with hotels only open for essential business," he said.

Belfast's hotel market was notable in January for having single-digit occupancy of 9%. For the week ending Feb. 21, average hotel occupancy across the country stood at 29%.

Emanuel said declines in revenue per available room for that same period were between 72% and 87%, which he said is no longer shocking.

An international rugby match scheduled for June in Edinburgh is already resulting in a boost to hotel occupancy on the books. (Terence Baker)

He added that such performance is mirrored across the major economies of Continental Europe, too.

The U.K., though, has an announced road map out of the pandemic, and declining new cases of COVID-19, hospital admissions and deaths, which is spurring optimism as spring nears.

The date planned for when restrictions will be lifted is June 21. Data from STR does show some spikes in business on the books due to events for which live audiences are expected.

Hotels are able to reopen as of 17 May.

On June 26, the British & Irish Lions rugby tram will host Japan at Murrayfield, Edinburgh, and already data shows hotel occupancy around that event of 63.4%. Between Nov. 1-12, the United Nations Climate Change Conference has boosted occupancy to nearly 90% in Glasgow, and more than 40% in Edinburgh, which will host overflow attendees.

“That may be Europe’s marquee event of the year,” Emanuel said.

Watch the video above for more of Emanuel’s insights into U.K. performance data.