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Quicker recovery for RBH hotels attributed to increased ADR for Q2

RBH Hospitality Management reports significant rise in average daily rates (ADR) as its hotel portfolio continues to recover.

The management company of over 45 UK hotels has seen ADR up to 50% higher than its competitive set this financial quarter. As STR reports slower recovery in city hotels versus regional hotels, when comparing 2019 occupancy, RBH is seeing comparatively quicker recovery. Between April and June 2022, London and Edinburgh-based RBH hotels have seen an average occupancy rate of 85% - 5% higher than its comp set.

In London, RBH managed properties also have an overall ADR that is 17% higher than competitors, with hotels such as Hampton by Hilton London Docklands and Holiday Inn Express Royal Docks reaching 50% above market average for price per occupied room.

Similar levels of ADR growth are being seen for the regional portfolio, where average rates are 15% higher than in 2019, representing the consistent application of RBH’s strategy for rate growth. It has also had a positive impact on overall RGI which has seen an overall 3-point increase on 2019.

As well as being reflected in some of its hotel’s outstanding digital ROIs, reaching highs of 64:1, RBH’s long term sales strategy to shift to dynamic pricing models has enabled corporate rates to rise in line with high market demand. Furthermore, by avoiding static rate blocks, the portfolio has been able to capitalise on the return of big city events, conferences, and concerts, particularly at venues like London ExCel and Hyde Park.

In addition, broader occupancy levels across the portfolio have been boosted through the successful focus on working with the entertainment industry securing filming projects, music crews and sports teams.

Director of Revenue, Chris Martin commented:

“Despite a recent consumer survey showing that the propensity for city breaks continues to trail 10% behind pre-covid, the RBH portfolio is currently outperforming market expectations which is really positive.

“Though the overall recovery in travel and hospitality remains challenging, e.g. news headlines about airport disruption, the UK is currently ranking second of all European countries for hotel occupancy levels which should be celebrated. As we look ahead for the remainder of the summer, business levels for July and August are already looking strong in both London and the regions. In addition, revenue for the summer months compared to 2019 continues to look strong due to our ADR strategy.”

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