Newcastle is hot spot for new hotel rooms

Newcastle is one of the top regional spots for new hotel rooms that are due to open in the next three years.

According to research from PwC, around 800 new rooms will be built by 2016 in the city.

The city is set to host new Hampton by Hilton and Tune hotels, adding 264 rooms to the city’s capacity.

PwC say the hotel business is stabilising across regions as occupancies remain high by historical standards.

Average daily rates are expected to reach almost £60 in 2014, which is still below the 2008 peak, but the best result since 2009.

Sean Hamilton, director, PwC Newcastle said: “The UK is already on a recovery track but growth is likely to be slow. Across the UK there are still continuing pressures on room rates. This is unlikely to change as consumers push back, book late in the hope of a bargain and use the pricing transparency of the internet to help them make a choice. Short lead times, a push for added value and the attitude that a better deal is to be had through booking late looks likely to continue.

“We remain cautiously upbeat but increasingly optimistic on the outlook of the UK hotel market. Historically there has been a close relationship between RevPAR and GDP growth, so a sustained recovery in GDP should lead to increased levels of room demand and revenue growth in the following years. But it remains a difficult trading environment as costs increase, and more supply put margins under pressure.”

Manchester, Birmingham and Glasgow also figure in the top of the charts.