Less than one-third of hoteliers in London believe the Olympics will be the key factor for their business success in 2012, according to the latest Hotel Confidence Montior survey conducted by HotStats. 

Of the 426 hoteliers questioned, 29.8 per cent of London hoteliers reported the Olympics as the key factor for business success this year, with 17 per cent saying the most important factor was economic improvement. In the provinces, 32.5 per cent of hotel managers said business growth would be reliant on economic improvement.

Managing director of HotStats, Mark Dickens, said: “Whilst it is not unexpected that provincial hotel managers have highlighted economic growth as the primary influence on business in 2012, it is surprising that less than a third of London hoteliers cited the Olympics as the most important factor influencing performance. This research further highlights the disparity regarding expectations as to what extent the Olympic Games will drive demand for hotel accommodation in the capital.” 

Optimism among UK hoteliers for the first quarter of 2012 rose, up to 53.3 per cent, with optimism among managers in areas of London reaching 63.8 per cent. London average room rate and RevPAR (revenue per available room) expectations for Q1 2012 were positive at 57.4 per cent and 61.7 per cent, respectively, while in the provinces RevPAR expectations reached 64.4 per cent. 

Expectations of room occupancy rates showed positive signs, with 70.2 per cent of London managers and 43.1 per cent of provincial managers expecting an increase or no change compared to the first quarter of 2011, however, general managers in the south east, south west and Northern Ireland reported a decline in optimism. 

There were also decreased expectations for gross operating profit for this quarter compared with Q4 2011, with only managers in Wales and Northern Ireland appearing more positive. 

In terms of staffing, 80.9 per cent of London hoteliers and 70.4 per cent of provincial hoteliers expect to maintain their current levels during the next three months.