The London hotel industry is on a ‘fast track to recovery,’ after experiencing a 5.5 per cent rise in revPAR to £155 in the final quarter of 2009.
According to figures released by STR Global, a 5.8 per cent rise in occupancy to 82.9 per cent drove the capital’s growth, despite a slight 0.2 per cent fall in average room rates to £133.
Marvin Rust, hospitality managing partner at Deloitte, said the figures demonstrated how London’s hotels went ‘from strength to strength’ in the last three months of 2009.
“With sterling still weak against a basket of currencies, London seems set to continue on a fast track to recovery,” he said. “Although there may be some downward movement in average room rates in the corporate market, due to the fact that corporate rates have already been re-contracted for next year, the overseas and domestic leisure markets continue to be robust and preliminary year-end results from STR Global show a decline of just 4.8 per cent for the capital.”
Hotels in the regions however saw a decline in revPAR of 7.7 per cent to £44, as both occupancy and average room rates dropped by 1.1 per cent and 6.7 per cent respectively.
Deloitte predicts that while London hotels may see a prosperous 2010, those in the regions will continue to be challenged, with a sustained recovery not expected until after the second half of the year.