Staycation boost drives Welsh hotel occupancy to a two-year record level

Welsh hotel occupancy rates jumped six per cent in August as the thriving staycation market increased levels to a two-year record high, according to the RSM Hotels Tracker.

The data, compiled and produced by STR and analysed by RSM, shows that Wales continued to be the destination of choice for UK holidaymakers as occupancy levels increased from 80 per cent in July 2021 to 86 per cent – surpassing pre-pandemic levels for the same month in 2019.

The average UK occupancy rate has also risen to 71 per cent in August from 65 per cent in July 2021. The average room rate across the UK has almost recovered to pre-pandemic levels at £94, with Wales reaching a two-year high at £89. In addition, revenue per available room across Wales soared to £77 in August 2021, up from £41 in 2020 and pre-pandemic levels at £57.

Chris Tate, head of hotels and accommodation at RSM, said: ‘The hotel sector is on the right track with a welcome staycation boost driving occupancy levels up again this month. Wales hit record highs over the summer as holidaymakers opted to enjoy the Welsh Valleys rather than foreign getaways. However, lower occupancy levels in London continued to hamper a wider UK recovery as restricted international travel and oversupply in London hit average occupancy levels and room rates.

‘Staff shortages continue to impact the sector which is starting to push up wage costs – applying acute financial pressure as the sector looks to recover post-Covid. Looking forward, travel restrictions for the double jabbed and the re-opening of travel corridors to the US will hopefully fuel further growth as the hotel sector looks to enjoy a post-summer boom and busy build up to the festive period.’