UK’s thriving staycation market to drive demand
According to Savills, the vast numbers of UK holiday makers opting for a staycation this summer is a trend set to continue in light of current international travel restrictions. With UK residents escaping to the coast and country, where many hotel rooms are rapidly being booked up and owners are confidently hiking up their rates, Savills is seeing increasing investor demand for hotel assets in the most popular regions.
Recent research by STR indicates that several regions have outperformed in terms of occupancy and in many cases, their Average Daily Rate (ADR). Hotspots in Cornwall, namely Newquay and Polzeath, are thriving with many hotels at 100% occupancy and some seeing rates up 20% on this time last year.
Numerous hotels in the New Forest are enjoying full occupancy and furthermore their F&B offering is benefitting from many guests now choosing to ‘dine in’. Equally, the Lake District has proven a top choice for travellers and in mid-July ADR and occupancy rates outperformed even London at this time.
Tim Stoyle, head of Savills hotels team, EMEA, comments: “The staycation has been touted as a silver lining to the challenges that the hotel industry is currently facing. As summer approached but restrictions on travel remained, those sentiments were mostly speculative. However, as lockdown has eased in the UK, trends have emerged supporting the expected: the UK is heading for the coast and country.”
James Greenslade, associate director, Savills Exeter, adds: “Hotel occupancy in the South West has made a swift recovery since lockdown restrictions were lifted and with demand for rooms at record levels, rates are also being boosted. With the region, now more so than ever, being hailed as one of the UK’s prime holiday destinations, investors are showing unprecedented interest for quality assets in our coastal and rural locations.”