Despite rapid growth and a stronger than expected rebound in demand in 2022, recovery in the UK hotel market is set to stall in 2023 in the face of continued volatility of trading conditions and rising operational costs. But, as the PwC UK Hotels Forecast 2022-2023 reveals, there are diverging fortunes for hotels in London and those in the UK regions.
Revenue per available room (RevPAR) in London in real terms is forecast to reach between 101% and 105% of pre-pandemic levels by the end of 2023.
However, in the regions, where GDP – which is forecast to fall close to zero in 2023 – is a stronger driver of UK domestic corporate and leisure demand, RevPAR is more uncertain, reaching between 85% and 98% of pre-pandemic levels by the end of 2023 in real terms.
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