Hotels Happy as Sector Thrives

By Alan Lodge

- Last updated on GMT

Related tags: Uk hotel market, Savoy hotel, Hotel, Uk

Hotels Happy as Sector Thrives
UK hotel sector in great shape despite tough economic conditions.

THE UK hotel market is in buoyant health despite tough economic conditions, according to latest research.

Deloitte’s HotelBenchmark Survey, unveiled at its European Hotel Investment Conference last week, showed that revenue per available room across the UK had increased by 6.8 per cent in the twelve months since September 2006.

Scottish hoteliers had the most reason to celebrate with average revenue growth of 8.9 per cent and Aberdeen in particular had a great year with the highest growth of all UK cities at 18.6 per cent.

Corporate demand from the oil and gas industry means the average room in an Aberdeen hotel now costs £74, said Deloitte.

London continues to have the highest occupancy levels in the UK at 82.7 per cent, with the average room in England’s capital city costing £126 a night, up from £114 in 2006.

Deloitte hospitality managing partner Marvin Rust said: “Fears of a slowdown following this year’s global financial crises have not yet materialised in the UK hotel market.
“Whilst growth has slowed slightly from the first six months of the year, we remain positive about the outlook for hotel performance.”

He added that a marked increase in visitors from Asia and Europe had offset a decline in visitors from the US.

Ramsey Mankarious, chief executive officer of Cedar Capital Partners – the investment firm behind the Savoy Hotel in London - said: “The crash has less effect on the luxury market; it’s a very safe place to be in these times.
“The top and bottom of the market will remain strong.”

Related topics: Trends & Reports


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