Weaker growth is set to be recorded in the UK hotel sector in the next 12 months, according to a report from PwC. The firm's UK Hotels Forecast 2019-2020 has found that dips in performance are expected across regional UK hotels, together with marginally slower growth in London. London is expected to maintain growth for the rest of 2019, boosted by international tourism as a result of the weak pound. However, occupancy is forecast to slip marginally by 0.3 per cent in 2020 to 84 per cent. PwC said it had been a difficult year so far for the regional market, despite Cricket World Cup demand helping to ease the decline over the summer. PwC is forecasting a 0.6 per cent decline in occupancy growth in 2020. Sam Ward, UK hotels leader at PwC, said: "The UK hotel sector is at a pivotal point. Looking ahead to 2020, while hotel performance will vary widely by geography, segment and business model, we remain overall more cautious in our outlook. "This latest UK Hotels Forecast reflects political and economic uncertainty, weaker business and leisure confidence, and the especially high number of new hotel supply additions in some markets around the UK, which have all created challenging conditions for hoteliers. "Sporting events have had a positive effect for hotels this summer. The ICC Cricket World Cup in particular helped boost the fortunes and particularly the ADR of hotels in hosting cities London, Manchester, Birmingham, Nottingham, Leeds and Southampton. And UEFA Euro 2020 should equally boost London and Glasgow in 2020."
Occupancy growth in the London hotel sector is predicted to fall 0.3% to 84% next year, while regionally there will be a 0.6% decline, according to PwC’s UK Hotels Forecast 2019-2020. The report highlights that London will maintain growth for 2019 due to a weaker pound and key sporting events attracting tourists. However, performance will “vary widely” across the country in 2020, said PwC’s Sam Ward, adding that the outlook remains cautious, amid “political and economic uncertainty, weaker business and leisure confidence”.