{"id":1004146915,"date":"2016-06-28T22:49:25","date_gmt":"2016-06-29T06:49:25","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004146915"},"modified":"2022-12-08T17:26:38","modified_gmt":"2022-12-09T01:26:38","slug":"brexit-will-have-a-negative-impact-on-uks-hospitality-industry","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/brexit-will-have-a-negative-impact-on-uks-hospitality-industry\/","title":{"rendered":"UK Hospitality Sector Badly Hit by Brexit"},"content":{"rendered":"

By Alexandra Pacurar<\/em><\/p>\n

\"brexit-uk-hotels-str\"<\/a><\/p>\n

London<\/strong>\u2014The referendum on Great Britain\u2019s exit from the European Union has caused international turmoil and the first effects of the vote were reflected in the economy. While the value of the British pound quickly dropped, experts fear that there are long-term consequences that will also impact the hospitality sector<\/a> in London and Regional U.K.<\/p>\n

So far, numbers indicate a positive outlook. According to STR<\/a>, the U.K.\u2019s hotel industry is in the midst of 30 consecutive months of moving average revenue-per-available-room (RevPAR) growth. According to a market report in May 2016, London\u2019s monthly performance has been positive, but its year-to-date May RevPAR was down 3 percent to \u00a399.88, driven by a 2.7 percent decline in occupancy levels. When it comes to Regional U.K., RevPAR increased by over 2 percent to \u00a346.87, as the 2.9 percent increase in average daily rate offset the 0.6 percent decline in occupancy.<\/p>\n

Short-term effects<\/strong><\/p>\n

Though there is no specific factor that might directly affect the hospitality sector, the general economic indicators will negatively influence the numbers, according to STR and Oxford Economics<\/a>. If Britain leaves the EU, the country might face a weaker domestic hotel demand, in line with a weaker GDP and consumer spending, and higher unemployment. Also, a larger drop in capital investment, including hotel investment, will affect business travel\u2014a large component of the London hotel market\u2014because of the ensuing uncertain business environment of Brexit.<\/p>\n

On a more positive note, experts predict that a sharp drop in currency exchange might make London more affordable and this could cancel any effects of a weaker domestic demand. Another relevant aspect for the U.K.\u2019s economy is investor\u2019s attention. If Britain\u2019s relations with other countries in the EU will remain on the positive side, any negative effects might be balanced out.<\/p>\n

Long-term predictions<\/strong><\/p>\n

Oxford Economics predicts that the long-term impact on overall domestic economic activity will be negative, but outlines a possible positive outcome due to increased affordability of the U.K. and London as a destination (because of a weaker exchange rate). However, lower investment might affect business-travel decisions on the long-run.<\/p>\n

Large foreign companies in Britain, especially U.S. banks, have been big supporters of the Remain campaign. London, considered Europe\u2019s financial capital, might lose about 40,000 workers in this sector because of Britain\u2019s exit from the EU, according to Fortune<\/a>. So far, no company has made a firm announcement and considering past situations (where banks threatened to move workers out of London because of special bonus taxes and caps without actually doing so), dark times seem less likely.<\/p>\n

In the end, there is little certainty when it comes to the consequences of Brexit<\/a>, but there are many variables. Things might change one way or another, but one thing is for sure. Any major player in Companies operating in Britain\u2019s hospitality or financial industries will have to adapt to the country\u2019s new legal structure and this alone may cause mayhem.<\/p>\n","protected":false},"excerpt":{"rendered":"

STR and Oxford Economics predict a negative impact of Brexit on the country\u2019s hotel industry, though the exact extent of the effects has not been established.<\/p>\n","protected":false},"author":236,"featured_media":1004146920,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21751,16,21783,21742],"tags":[],"class_list":["post-1004146915","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hotel","category-international","category-investment","category-latest"],"acf":[],"yoast_head":"\nUK Hospitality Sector Badly Hit by Brexit - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/brexit-will-have-a-negative-impact-on-uks-hospitality-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK Hospitality Sector Badly Hit by Brexit\" \/>\n<meta property=\"og:description\" content=\"STR and Oxford Economics predict a negative impact of Brexit on the country\u2019s hotel industry, though the exact extent of the effects has not been established.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/brexit-will-have-a-negative-impact-on-uks-hospitality-industry\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-06-29T06:49:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T01:26:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/06\/brexit-uk-hotels-str.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"337\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Alexandra Both\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/brexit-will-have-a-negative-impact-on-uks-hospitality-industry\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/brexit-will-have-a-negative-impact-on-uks-hospitality-industry\/\",\"name\":\"UK Hospitality Sector Badly Hit by Brexit - 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