Cambridge has develop into probably the most engaging UK metropolis for lodge funding in 2021, based on new analysis from Deloitte.
The college metropolis is carefully adopted by rival Oxford and Scottish capital Edinburgh, which rank second and third, respectively, the within the annual lodge business survey.
In Europe, Amsterdam stays probably the most engaging metropolis for lodge funding subsequent 12 months, adopted by London and Paris.
General, the temper of the market remained upbeat, regardless of the challenges posed by the Covid-19 pandemic.
Over two-thirds of respondents are ‘strongly’ or ‘barely’ optimistic concerning the long-term way forward for the UK lodge market, with the bulk additionally predicting an increase in profitability over the subsequent 5 years.
Andreas Scriven, head of hospitality and leisure at Deloitte, mentioned: “The lodge business has been one of many hardest hit by the outbreak of Covid-19.
“Nevertheless, as vaccination developments look more and more promising and shoppers suppose forward to 2021 travels, senior hospitality figures are extra optimistic concerning the 12 months forward.
“Certainly, many count on profitability to rise between now and 2025.”
He added: “The restrictions on worldwide journey this summer time noticed many UK shoppers change their vacation plans to home staycations.
“UK locations additionally stay engaging for lodge funding, with Cambridge overtaking Edinburgh to the highest spot this 12 months, the latter transferring to 3rd place behind Oxford.”
In comparison with 2020 ranges, over 1 / 4 of respondents count on income per out there room (RevPAR) development to be higher than 9 per cent in London in 2021, with 21 per cent anticipating the identical RevPAR development for UK areas over the identical interval.
Nevertheless, half of the respondents consider {that a} ‘no deal’ Brexit will decrease the attractiveness of London for lodge funding.
Nikola Reid, director and head of UK hospitality advisory at Deloitte, added: “Throughout Europe, lodge traders proceed to search for alternatives in Amsterdam which retains its place as probably the most engaging European metropolis for funding for the fifth 12 months in a row.
“Second to Amsterdam is London however, because the Brexit transition deadline approaches, traders point out some warning.
“Mixed with the challenges that Covid-19 has introduced this 12 months, boosting shopper confidence to as soon as once more pack their suitcase will likely be key to a speedy restoration of the lodge business, and guarantee long-term projected funding is realised.”
