Recent analysis by business advisory firm Deloitte has found that occupancy in London hotels has remained largely stable, dropping by less than one per cent to 78 per cent in the year to June.
But with the drop in RevPar for London hotels beginning to slow down, Marvin Rust, hospitality managing partner at Deloitte hoteliers, has warned hoteliers to watch their escalating room rates, especially with the busy summer months ahead.
“Overall, hotels in both London and the regions have held up exceptionally well in the global economic downturn,” he said. “But it is important to start pushing up average room rates now that occupancy is stabilising.”
Regional hotels have not performed so well, with average revPar falling by one per cent to £43, but Rust was confident of a ‘sluggish recovery’ in the next year,
“Regional UK hotel performance has a strong correlation to UK gross domestic product performance and should start improving as the recession subsides,” he said. “However, regional performance could be buoyed by strong domestic demand for tourism this summer as more Britons holiday throughout the UK.”