Key UK cities record solid hotel performance growth in March

Hotel 52 Stanley, United Kingdom. Photo credit: Hotel 52 Stanley

Key regional cities in the UK reported solid performance in March 2018, scoring record occupancies in several markets, according to a report from PwC.  
 
Regional occupancy levels have been climbing since 2011, with budget rooms operating at high occupancy rates. The addition of heightened style and luxury amenities at the UK’s budget hotels is attributed to the shift in the region’s supply toward more affordable rooms. 
 
One of these new budget properties is the recently opened boutique Hotel 52 Stanley in England. The property between Durham and Newcastle is in the former mining community of Stanley.

"There's a stark difference between 'budget' and 'basic' these days in the UK hotel sector. Chic furnishings, free Wi-Fi, sumptuous breakfasts... all of these are contributing to a new breed of budget-boutique hotels that appeal to travelers looking to get more for their money," Jonathan Stephens, managing director of Surrenden Invest, said in a statement. "Holidaymakers want the best, but at a decent price that's affordable for the whole family. Business travelers are also looking to get more for their money, which has created a real opportunity for this corner of the hotel market.”

Hotel 52 Stanley underwent a £1.5-million renovation in 2017 ahead of its opening in December. The hotel now has updated guestrooms at budget rates and Pazzo restaurant with a revamped breakfast, lunch, dinner and cocktail menus. 

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The 23-suite property is near Durham’s UNESCO World Heritage sites, Newcastle’s shopping and dining areas, the North Pennines Area of Outstanding Natural Beauty and the Beamish museum. "One of the exciting aspects of Hotel 52 Stanley is the breadth of entertainment and business options that surround the hotel. Durham, Newcastle and Gateshead are all nearby, with excellent transport connections in place. Meanwhile, the surrounding rural beauty means that the hotel appeals to a wide variety of guests. It's a very versatile establishment that provides the perfect-price point for travelers who want a fantastic base for their break, at an affordable price,” Stephens said. 

PwC predicts UK hotels will record ADR growth of 2 percent in 2018, with RevPAR reaching 2.3 percent over the course of the year.

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The company expects to open more than 30 new Comfort properties in the market by 2033 via its existing franchising agreement with Choice Hotels Japan.

While consolidated revenue for the quarter was up 10.9 percent as reported, it was up 4.1 percent on a like-for-like basis compared to Q3 2018.

Sam Schwartz has spent more than four years with First Hospitality, including most recently as a general manager.