RevPAR Recovery in UK Regional Hotels — Where Are We Now?

The UK regional hotel market has outperformed expectations since 2023. Following the sharp RevPAR decline of 2020–21 and an uneven recovery in 2022, regional hotels outside London have delivered three consecutive years of RevPAR growth — and in several markets, they are now trading above pre-pandemic peaks.

The drivers are well understood: domestic leisure demand has remained robust, corporate travel has recovered more strongly in provincial markets than in London, and a number of undercapitalised independents have exited the market — tightening supply at the critical 50–150 key segment.

For property owners, the current environment raises a specific question: is your hotel capturing its share of the recovery? The owners we work with who entered the period with strong management, revenue management infrastructure, and a recognised brand have outperformed the market.

The data is unambiguous on one point: the RevPAR gap between managed and unmanaged UK regional hotels has widened since 2022. Management is not a luxury in a growing market — it is a multiplier.

At Compass, our UK portfolio achieved an average RevPAR growth of 18% in 2025 against a regional market average of 11%. The difference is explained by revenue management, distribution, and the accountability structure that comes with a professional operator.