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UK Hotels forecast 2017/2018 by PwC

Outlook for London
What a difference the last two months of 2016 made to London's hoteliers. Stronger economic growth than previously predicted and the weak pound appears to be finally driving stronger travel demand. Potential downsides are that it is unclear how long the weak pound will last and that terrorism continues to cast a potential shadow over European cities.

Forecast for 2017
For 2017, we now expect London to see RevPAR growth of 3.3% taking RevPar to 120, driven by a 2.4%  ADR increase.

Forecast for 2018
We anticipate a further 2.5% revenue per available room/RevPAR advance to 123, supported by a 2% average daily rate/ADR gain, taking ADR to 149 in nominal terms. 

Regional Outlook
2016 saw the regions enjoy a fifth consecutive year of ADR growth. The economic growth upgrade for 2017 should help underpin demand. Some destinations with overseas visitor demand will benefit from the weak pound effect as well as economic growth in key inbound markets. Staycations will also drive demand.

Read the full report here-