Pipeline of new UK hotels slows down, but re-branding is up

The pipeline of new hotels in the UK has slowed down, but there has been an increase in the number of properties being rebranded, according to the Hotel Britain 2014 report published today by accountancy firm BDO.

Last year saw the number of new-build rooms fall by 51.7% from 15,858 in 2012 to 7,559.

The focus, however, has been on rebranding, with 6,552 rooms re-entering the market in 2013 with a new name over the door, up 104.3% from 3,207 the previous year.

The UK hotel industry currently account for more than 600,000 rooms distributed across 45,800 hotels, according to figures from the British Hospitality Association.

In 2014, London can expect a 4% increase (around 4,500) new hotel rooms, while the regions will see a 2% increase, which equates to around 6,500 rooms.

The report, which is compiled from a cross section of 456 UK hotels, also highlights that 2014 is expected to surpass the success of 2013.

Ongoing improvements are being driven by a resurgence in the fortunes of regional hotels, which has seen some areas outside the capital catch up with the phenomenal levels of growth experienced by London in recent years.

In the regions, average achieved room rate (AARR) growth for 2013 was 1.4%, while London's AARR was marginally down in 2013 (-0.1% to £152.48) due to the 2012 hike in rates during the Olympics.

Rooms yield growth for 2013 in the regions was 3.5% compared to a 1.1% rise in London.