Softening demand
will see UK average daily rates at three-star hotels fall by an average of 7.6
per cent during September, according to a new forward pricing report by Roomex.
The fall in
rates follows 20 weeks of consistent price rises and an almost complete recovery
to pre-Covid levels, largely driven by a spike in leisure demand with people desperate
to be somewhere other than at home.
The UK-wide
ADR at three-star hotels over the past four weeks was £95.39, compared with £101.15
in January 2020, the company said.
Inner city
ADRs are set to fall to £85.71 and outer city ADRs to £83.00 12 weeks out on
average, the company reported.
However,
the decline will vary widely. Rates at central hotels in London are set to fall
by 14 per cent, the company found, compared with 1.8 per cent in Liverpool.
However, outer city areas will show lower declines.
Mark Trimble, Roomex’s director for customer success said, “It’s very clear from the
demand pattern but also from discussions with clients that the outer areas are most
sought after. Parking was always a key feature for workforce customers – secure
and able to take outsized vehicles. This has become more pronounced.”
Shaun Cole,
head of sales at Village Hotels, said, “We see traditional corporate travel
already returning quickly through the autumn.”