UK hotels increased capital expenditure by 57% to £1.62 billion in 2015/16, up from £1.03 billion in the previous year to compete with newer tech rivals, according to research by Funding Options, the online business finance supermarket.
Funding Options explains that established hotels are investing in their facilities and improving their offerings to stay competitive. Consumers now have a much greater selection of options available to them with the rise of online competitors such as Airbnb. As a result, alternatives are increasingly threatening the market share of traditional hotels.
The 57% rise in expenditure is the third consecutive year that UK hotels have increased capital spending.
Funding Options says that hotels are now looking to build on the potential increase in ‘staycations’. With the fall in sterling in the wake of the Brexit vote, people are likely to get better value for money by staying in the UK.
Conrad Ford, CEO of Funding Options, comments: “Established hotel chains are investing more into their offerings to keep their market share in the face of increased competition.
“Hotels will be competing with each other and online-only alternatives to capitalise on the increase in domestic tourism and staycations as the pound and concerns remain over the safety of some continental destinations.”