The recovery of the UK’s hotel sector continues apace but the question is, how long will that persist for?

The last couple of months have seen a continuation of the rebound evident in the latter half of 2021 as people make the most of the loosening of Covid restrictions and pent up demand for leisure travel is released.

The UK is currently one of the best performing hotel markets in Europe, with occupancy at 87% of 2019 levels according to STR’s recently released figures.  However, whilst there is comfort to be taken from that after the torrid couple of years the sector has endured, we are not out of the woods yet.

Resourcing remains a key concern with hoteliers finding it increasingly difficult to recruit and maintain staff.

Rising costs are also a problem – both for operators, but also for travellers.  With inflation at a 30 year high in the UK, and anticipated to increase further, it remains to be seen to what extent this will temper the resurgence in leisure travel.

In addition, as long-haul and foreign business travel start to recover, there is the threat that some of that newly returned demand will be satisfied abroad.

But it is not all doom and gloom.  Interest in the sector – particularly within the key hotel markets within the UK - remains high.  For now, we are enjoying a long-awaited resurgence, but a note of caution is in order.