Data from CoStar indicates that the U.

K. hospitality industry experienced an improved revenue per available room (RevPAR) in the first quarter of 2026, with a 1.2% increase, while occupancy levels remained unchanged.

The uplift in RevPAR for the first three months of 2026 was largely supported by a series of events held in regional markets, including Glasgow, Manchester, Cardiff, and Birmingham. This performance contrasts with a recent report from Barclays UK Consumer Spend, which noted a decline in travel spending during March for the first time in five years, affecting travel agents, airlines, and public transport.

Cristina Balekjian, principal market analyst at CoStar Europe, commented on these trends, suggesting that “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.”

The outlook suggests that increased demand from British travelers opting for domestic trips is expected to bolster key U.

K. tourist destinations, particularly during the summer months. Conversely, London, which relies more heavily on international and long-haul visitors, may encounter greater challenges compared to regions primarily driven by domestic tourism. CoStar Group, founded in 1986, is a global provider of commercial real estate information, analytics, and online marketplaces.