( with a chance for a decline of up to 1.5 percentage points ) and a decrease in continuing GOP margin in the regions ( up to 2.3 percentage points ). The revised 2023 outlook said RevPAR growth would surpass the dip in GOP margin , although the hotels struggling to achieve the market RevPAR rise will lag their 2019 GOP .
PRELIMINARY 2024 OUTLOOK The initial 2024 outlook is based on the April 2023 PwC UK Economic Outlook prediction of 1 % GDP growth and annual inflation dropping to 2 % by the end of the year .
The hotel market in the provinces is likely to benefit from this outlook , with domestic corporate and leisure demand for accommodation estimated to rise further . This , however , is expected to be impacted by the potential oversupply from new hotel openings , resulting in moderate RevPAR growth of roughly 3 % overall .
London is expected to continue to benefit from a weak pound and rising incoming visitor volume , resulting in 6 % RevPAR growth .
TAKING ACTION Changing inventory levels to align with volumes to an optimal cost base ( for example , by removing rooms from sale “ semipermanently ” based on expected variable cost changes ).
• Optimizing service offerings by removing lower-margin services .
• Exploring opportunities for supplier consolidation and contract renegotiation , considering relationships as partnerships instead of supplier / customer interactions .
• Implementing and reviewing staff optimal productivity models and ensuring the right level of full-time employees in line with demand . Efficiency gains realized during the pandemic bounce back should be maintained as occupancy rises .
• Reviewing business mix and focusing on opportunities to improve higher margin volume by , for example , through meetings and conferences
Other transformative approaches include divesting poorperforming assets and non-core activities , new acquisitions where there ’ s a strong synergy and reviewing operating models and considering organizational restructuring .
WWW . REMINGTONHOSPITALITY . COM
FOR HOTEL MANAGEMENT INQUIRES , PLEASE REACH OUT TO :
BUSINESSDEVELOPMENT @ REMINGTONHOSPITALITY . COM
OR 972.980.2700