Whilst there has been a general improvement reported across the UK hotel sector, London hotel performance is still yet to return to pre-COVID levels.
According to PwC’s UK Hotels Forecast 2022-2023, the outlook for London and the UK regions are very different.
Surging inflation, crippling high energy costs and rising interest rates are major challenges for hoteliers at present, not to mention staffing shortages and supply chain disruption.
The budget end of the hotel market is notoriously the most resilient, with budget brands like Travelodge and Premier Inn historically performing strongest in tough economic times.
Current market conditions are impacting transactional volumes, yields have drifted out, but interesting investment opportunities will arise.
Enjoy your Sunday.