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Hotels in rural and coastal destinations are outperforming urban markets in the first half of 2025, with limited supply and stronger domestic demand boosting revenues, according to CoStar’s latest data.
Lincolnshire and Cumbria, including the Lake District, recorded around 6% growth in revenue per available room (RevPAR), supported by stable supply and rising demand.
The report stated that favourable weather and affordability helped domestic-led markets outperform during key holiday periods.
Group bookings also contributed to growth, with East and North Yorkshire, Lancashire and Cheshire reporting double-digit increases in blocks of 10 rooms or more for leisure and business stays.
By contrast, cities including London, Leeds, Manchester and Bristol have struggled, with new supply outpacing demand and weaker business sentiment weighing on performance.
Edinburgh saw a 2% fall in RevPAR after missing out on high-profile concerts that had boosted trading in 2024.
However, July provided a lift for some urban destinations, driven by major events. Cardiff recorded a 44% RevPAR increase, helped by concerts from Oasis, while The Open Championship in Northern Ireland pushed revenues up by 23% in comparison to Glasgow, which hosted The Open last year, posted an 8% decline.
Looking ahead, CoStar stated that summer trading is likely to remain strong, but cautioned that value-conscious consumers, rising costs and a weaker US dollar could dampen demand outside peak holiday months.
VisitBritain data shows a quarter of UK consumers plan to take fewer overnight trips this year, while many intend to cut overall spending.
Furthermore, it highlighted that a weaker US dollar is set to impact destinations appealing to international visitors, as the UK becomes more expensive for many overseas tourists, potentially limiting average rate growth.
Hotels in rural and coastal destinations are outperforming urban markets in the first half of 2025, with limited supply and stronger domestic demand boosting revenues, according to CoStar’s latest data.
Lincolnshire and Cumbria, including the Lake District, recorded around 6% growth in revenue per available room (RevPAR), supported by stable supply and rising demand.
The report stated that favourable weather and affordability helped domestic-led markets outperform during key holiday periods.
Group bookings also contributed to growth, with East and North Yorkshire, Lancashire and Cheshire reporting double-digit increases in blocks of 10 rooms or more for leisure and business stays.
By contrast, cities including London, Leeds, Manchester and Bristol have struggled, with new supply outpacing demand and weaker business sentiment weighing on performance.
Edinburgh saw a 2% fall in RevPAR after missing out on high-profile concerts that had boosted trading in 2024.
However, July provided a lift for some urban destinations, driven by major events. Cardiff recorded a 44% RevPAR increase, helped by concerts from Oasis, while The Open Championship in Northern Ireland pushed revenues up by 23% in comparison to Glasgow, which hosted The Open last year, posted an 8% decline.
Looking ahead, CoStar stated that summer trading is likely to remain strong, but cautioned that value-conscious consumers, rising costs and a weaker US dollar could dampen demand outside peak holiday months.
VisitBritain data shows a quarter of UK consumers plan to take fewer overnight trips this year, while many intend to cut overall spending.
Furthermore, it highlighted that a weaker US dollar is set to impact destinations appealing to international visitors, as the UK becomes more expensive for many overseas tourists, potentially limiting average rate growth.
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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