CoStar Data Shows U.K. Hotel RevPAR on an Upward Trajectory

The U.K. industry posted improved revenue per available room (RevPAR) in March, according to data from CoStar, a global leading provider of online real estate marketplaces, information and analytics in the property markets.

In the first quarter of 2026, the U.K. recorded a 1.2% increase in RevPAR, while occupancy remained flat, supported by events in regional markets including Glasgow, Manchester, Cardiff and Birmingham.

The Barclays UK Consumer Spend Report also showed travel spending fell in March for the first time in five years, with year‑on‑year declines across travel agents, airlines and public transport,” said Cristina Balekjian, principal market analyst at CoStar Europe. “Cancellations of overseas travel plans could boost demand for domestic staycations, as seen over the Easter weekend when demand spiked from Good Friday to Easter Sunday, although rate growth remained challenging.”

Looking ahead, stronger demand from British travellers staying closer to home is expected to support key U.K. tourist destinations, particularly over the summer, while London, which is more reliant on international and long‑haul demand, may face greater challenges than regions driven primarily by domestic travel.

The full analysis can be found here.