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Newcastle hotel rates slide after 820 rooms open

Year to date prices until October 2016 down to £66 average as hotels like Hampton by Hilton come on board
05/12/2016

Pictured: Newcastle prices have gone down almost 3 per cent in the year to date to October 2016


A spate of hotel openings in Newcastle has driven down average room rates by 2.4 per cent following a 4 per cent fall in occupancy this year, says Hotstats.


In the latest UK chain hotels market review, Newcastle prices in the year to date to October went from £68 in 2015 down to £66 this year, after more than 800 new hotel rooms came onto the market. Comparing October alone year on year, prices dropped a significant 15 per cent (£82 to £70), though report authors point out this compares to the period when it hosted the Rugby World Cup.


"Since the beginning of 2015, additions to the market have included a 160-bedroom Hampton by Hilton, 222-bedroom Motel One, 251-bedroom Crowne Plaza and 184-bedroom Premier Inn, which have undoubtedly contributed to falling room occupancy (-3.8 percentage points) and achieved average room rate (-2.4 per cent) performance for year-to-date 2016," the report states.


Meanwhile a rise in international visitors has been attributed as to why hotel rates in the year to date to October 2016 went up 7 per cent (£108 to £115). It was reflected in a steady 1 per cent rise to already high occupancy rates, reaching 84 per cent in the same period. For the month of October, Edinburgh hotels averaged 87 per cent.


South West hotel performance was also strong for the year to date to October, as room rates rose 3 per cent to £83. For the month of October, occupancy fell 2 per cent and average rates fell 1.4 per cent to £84.


Report authors added: "The decline in profit in October was the largest monthly year on year drop in the region in 2016 and may be related to the demand associated with the Rugby World Cup 2015 fixtures hosted in the South West this time last year at venues in Exeter, Gloucester and volume displaced from nearby Cardiff."



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