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Published:
10/03/2010
London room rates expected to rise £10 in 2010
More than £10 is expected to be added to average room rates in London, with hoteliers in the capital likely to post double-digit revenue per available room (revpar) increases in 2010, according to the latest Hotel Market Outlook report by Deloitte.
Marvin Rust, hospitality managing partner at Deloitte, said: “Actual Q4 2009 results in London smashed predictions, seeing revpar rise 7.4 per cent rather than the 3.5 per cent decline previously forecast, and the start to Q1 2010 has been impressive. Year-to-date gains of 10.1 per cent have already been recorded, and while Q1 as whole will be a little softer than the original prediction of a 15.8 per cent revpar rise, due to the bad weather, it does look set to end with gains in the region of 10 – 15 per cent. With no further shocks, this could be a year that sees double-digit growth in the capital.”
The report predicts the first three quarters of the year will see double-digit revpar increases, although this will decelerate towards the end of the year. Occupancy is expected to peak in quarter three at 87.2 per cent. The strong growth is not expected to be sustained in 2011, with forecasts suggesting a more moderate 1.4 per cent increase in revpar in the capital.
The immediate outlook for regional UK hotels is not as optimistic, although occupancy is expected to claw its way back in the first quarter and grow throughout the year. Regional hotels are expected to see revpar growth of 6.3 per cent in 2010, but will post stronger growth than the capital in 2011, with revpar growth forecast at 5.6 per cent.