Hotels in Liverpool see rises in both average room rates and revenue per available room over the past 12 months with Eurovision a key driver. Tony McDonough reports
Liverpool hotels have enjoyed a rise in revenues over the past 12 months despite the tough economic climate.
For two weeks in May the city centre welcomed hundreds of thousands of extra visitors in the run up to, and during, the Eurovision Song Contest. And new figures from the Liverpool BID Company show the event gave hotels a major boost.
Collated on behalf of the city’s Accommodation BID, the first to be established in the UK, the figures show hotel occupancy in Liverpool over the past 12 months has hit just under 75%. The city centre currently offers 10,182 rooms.
This is a big improvement on the 24.8% occupancy seen at the height of the COVID pandemic in early 2021. It is on a par with the figure of 73.3% recorded in the months before the pandemic.
Eurovision provided the most successful month of the past 12 months for the sector which has seen rises in both the average daily rate (ADR) for rooms and the revenue per available room (RevPar). The Open Golf Championship was also a driver of bookings.
Over the 12 months the ADR stands at £93.21, an increase of 6.2% on the previous year. RevPar comes in at £69.81, a rise of 9.6%. In the year to date supply in the hotel sector has increased by 5.9%, while demand has increased by 9.1%.
Economy rooms are leading the way in occupancy terms, fitting in with a national trend. Luxury and upscale rooms have seen an increase in rates, driving a growth in pricing.
Liverpool’s Accommodation BID has established a subvention fund, helping the city to attract major events and conferences which benefit the hotel and serviced accommodation sector.
Another 860 rooms are expected to be added to the total over the next two years, an increase of around 12%, the highest since 2018. The past 12 months has seen approximately 220 rooms delivered.
New hotels include the Novotel Paddington and the Municipal Hotel Liverpool. Some sizable projects are still to be delivered, with Maldron Park Lane opening later this year as Dalata continues its expansion across the country.
Liverpool BID Company chief executive Bill Addy said: “We have seen the hotel and serviced accommodation sector show incredible resilience over the past five years.
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“The Accommodation BID is designed to help strengthen that resolve and help the sector to grow, which we are seeing early signs of. Major events and Liverpool’s leisure industry have supported in a strong 12 months.
“We know that the cost of living, and any economic jolts will be felt by the industry, which is why we believe investing in events to come to the city helps to make sure it is on the map.
“It also helps the whole hospitality industry benefit from the city’s increased footfall.”