UK hotel market to rebound strongly post-pandemic
The UK hotel market is set to rebound strongly once the economy revives and travel restrictions are lifted post the COVID-19 pandemic, according to research by Knight Frank.
The consultancy has predicted that a full market recovery may be possible in London by the fourth quarter in 2021, if the market reopens by the end of second quarter of this year. It says that the unprecedented action taken to deal with COVID-19 means that the immediate economic impact is anticipated to be more severe than past economic downturns, with hotels likely to be disproportionately impacted due to the challenges coming from a period of lockdown.
Despite this, Knight Frank is forecasting a V-shaped recovery, with occupancy growth stronger in the initial recovery phase, leading to a rebound in revenues per available room (RevPAR) once travel restrictions are eased and long-haul inbound visitors return.
This, according to Knight Frank, will then help to drive the average daily rate (AD