Hotel revpar 'hit 27-year high' in London and UK regional cities in 2022

Revenue per available room (revpar) soared to its highest level in 27 years for hotels across London and the UK’s regional cities in 2022, according to recent research.

Data accrued by STR, a division of commercial property company CoStar Group, found that London revpar was almost at 125% of 2019 levels in December 2022.

The hotel sector showed strong growth, as London revpar in January 2022 was less than half (44.9%) 2019 figures.

Regional revpar at the start of the year was at 76.3% of 2019 levels, but leapt to 121.3% in July, peaking at 123.5% in December.

The research suggested that looser travel restrictions, the onset of the weak pound and the Queen’s funeral led to rises throughout the year.

Prices of luxury hotels were well ahead of pre-pandemic levels, while budget hotels reported the strongest occupancy growth.

Trade in urban destinations was boosted by the return of city breaks and corporate business, while coastal towns saw a dip in performance due to the decline in staycations compared to 2021.

However, CoStar Group predicted that staycations could pick up again amid the cost of living crisis.

It also suggested that hoteliers will shift towards an occupancy-based strategy as rates and trading start to settle in the year ahead.

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