Contents
04.
ADR Performance
2021 ADR Performance as a % of 2019
Winners
01. Blackpool
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- A leading coastal resort within the UK, benefitting from the Staycation boom in 2021 and acting as an alternative to international beach destinations.
- Strong ADR levels were further supported by one-off events such as the 125th anniversaries of both Blackpool Pleasure Beach (theme park) and The Empress Ballroom (iconic venue).
- The brand new Boulevard Hotel, which was also ranked amongst the top 10% of all hotels worldwide in the 2021 TripAdvisor Traveller’s Choice Awards, has supported higher ADR performance for the overall market.
02. Bournemouth
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- Increasingly high levels of demand due to a rise in Staycations amongst seaside resorts has enabled hoteliers to achieve ADR figures above pre-Covid levels.
03. Bath
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- Limited hotel stock, coupled with the city’s popularity amongst British tourists during 2021, has led to ADR performance surpassing 2019 levels.
04. York
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- Extremely popular city break location for British holidaymakers during 2021, enabling local hoteliers to increase average room rates.
05. Plymouth
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- Strong occupancy performance for Plymouth during 2021 has enabled the local hotel market to surpass 2019 ADR levels.
- Traditionally a group and coach tour destination, with demand within this segment partially replaced by an increasing number of (higher paying) individual travellers.
During the last six months of 2021, Exeter made it amongst the top 5 in terms of ADR performance, which can be attributed to the city’s position as a strong Staycation hotspot during the summer.
Losers
25. London
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- Low levels of demand during 2021, particularly from the higher-paying overseas market, has hindered the recovery of average room rates across the capital city. It is worth noting, however, that as international travel started to resume during the last quarter of 2021, ADR performance during this period approached pre-Covid levels.
24. Reading
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- Home to key employers such as Microsoft, PepsiCo and Bayer, therefore relying heavily on demand generated from international business travellers (American); a segment that has experienced a slow recovery during the pandemic.
23. Cambridge
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- ADR recovery in 2021 was slower than other markets due to weak occupancy levels in the first half of the year. This was a direct impact of the university hub’s reliance on overseas visitation (50%), as well as corporate and MICE demand; segments which remained subdued during this period.
- As occupancies improved in the latter half of the year, it is worth noting that ADR levels during this period actually surpassed 2019 performance.
22. Oxford
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- Similar trends to Cambridge, with the city’s ADR recovery impacted by weak occupancy performance during H1 2021.
- Occupancy improved during the second half of 2021, enabling hoteliers in Oxford to achieve ADR levels above 2019 across this period.
21. Leicester
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- ADR performance has historically been driven by the city’s cultural, sporting and event scene. In the absence of events during most of 2021 and in order to keep occupancy levels afloat during the pandemic, ADR growth during the first half of 2021 was challenging.
- ADR levels did, however, improve significantly in line with restriction easing during the latter half of 2021, with the August to December period showing ADR levels ahead of 2019.
During the last six months of 2021, Edinburgh also ranked amongst the bottom 5 in terms of ADR performance. This is predominantly due to the world’s leading festival city cancelling its scheduled events during this period, as a direct result of Covid-19 restrictions. Historically, Edinburgh’s popular festivals and events programme, which also attracts a significant level of international visitation, would enable strong ADR premiums for hotels across the city.
Source: STR, a CoStar Group Company
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