Hotel occupancy rates across England remained unchanged in October 2025, despite a modest drop in demand, according to the latest data from VisitBritain.
The figures suggest that hotels have sustained utilisation through a tighter supply, even as fewer rooms were booked — a pattern with important implications for the UK hotel market.
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Supply tightens as demand softens
The October figures come against a backdrop of shrinking room supply. Compared with October 2024, the number of available rooms fell by about 3.9 per cent. Demand also declined, and by a slightly larger margin — reflecting a modest cooling in bookings.
This reduction in supply appears to have played a key role in sustaining occupancy levels: with fewer rooms on offer, hotels managed to maintain a stable occupancy rate even though overall demand softened.
Pricing and revenue per room remain broadly unchanged
In parallel with stable occupancy, revenue metrics remained relatively flat. The average daily rate (ADR) rose only slightly, while revenue per available room (RevPAR) showed limited improvement.
Since RevPAR combines room rates with occupancy, the near-flat performance suggests that neither pricing increases nor occupancy gains were sufficient to boost overall room revenue significantly.
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By GlobalDataIndustry participants gauge hotel health using ADR and RevPAR alongside occupancy. ADR represents the average price paid per occupied room, while RevPAR captures revenue across all rooms — occupied or not.
Broader context: what this means for hotel operators
The current pattern — stable occupancy despite falling demand and supply — signals a cautious but resilient hotel market in England. For operators and investors, it demonstrates how reductions in room supply can offset softer booking volumes, maintaining utilisation across properties.
At the same time, the lack of a clear uplift in revenue per room suggests that the market is not under strong upward pressure on pricing or demand.
As economic and travel conditions evolve, hotels may need to monitor ADR and RevPAR closely, and consider strategies beyond room-rate increases (such as value-added services or alternative revenue streams) to support profitability.
In a market where supply constraints help sustain occupancy, the ability to generate consistent revenue per room — not just fill beds — will be critical for long-term success.
