Cities in Yorkshire are bucking the trend when it comes to hotel room supply and costs, with the UK market at large remaining flat amid economic uncertainty.
Hotels in the North have seen occupancy levels remain fairly constant, although Leeds has seen an increase of occupancy rates.
Elsewhere York still commands one of the highest Average Daily Rate (ADR)s outside of London. However ADRs around the Yorkshire region remain static at the same level seen in 2017.
Liverpool and Leeds which have seen occupancy levels increase by 3.9 per cent and 1.4 per cent respectively. However the outlook for hotel trading in the UK this year remains flat as a surge in room supply, slowing global and UK economic growth and ongoing uncertainty relating to Brexit is expected to provide a challenging environment for performance growth.
Looking forward there are some positive signs that investments in infrastructure together with upcoming events could help future occupancy rates around the regions.
For the first time in 20 years, England will be hosting the ICC Cricket World Cup. Hosted in cities up and down the country, including Leeds, 10 international teams will battle it out over a two-month span to become world champions.
Next year sees the UEFA Euro 2020 football championships take place, with seven matches due to be played at Wembley.
David Trunkfield, head of hospitality and leisure at PwC, said: “The regions have enjoyed solid RevPAR growth in recent years but 2019 is looking more difficult as domestic economic growth slows and high levels of new supply dampen hotel
Total deal volume for 2018 reached circa £6 billion, a 36 per cent increase on the previous year making it the second highest ever year in terms of deal volume behind 2015 which saw a high of around £9.3 billion.
Looking ahead to 2019, PwC forecasts for deal activity to decrease by around 10 per ent to £6 billion.
Sam Ward, UK hotels leader at PwC, said: “Deal activity for 2018 was a tale of two halves. The first half was dominated by portfolio transactions with the second half dominated by single asset deals. Despite the continued
uncertainty in the market caused by Brexit, this did not deter investors and deal volume reached near record highs.
“Investor appetite has remained strong this year so far with some portfolio deals already taken place. There’s an expectation for continued inward investment from Europe and the Far East especially given the low value of the pound.”