UK hoteliers have reported double-digit revenue per available room (revPAR) growth in Quarter 3, but those hoping for the same in 2011 could be disappointed, according to the latest report by business advisory firm Deloitte.

Hotels in London saw revPAR surge 19.8 per cent in Q3 to £117, compared to £98 during the same period in 2009. Growth in the capital was driven by a 15.6 per cent rise in average room rates to £133, while occupancy rose 3.7 per cent to 87.9 per cent.

Hotels in regional UK also turned in a strong performance during Q3 with revPAR growth of 10.8 per cent to £49 (versus £44 in 2009). Occupancy rose 6 per cent to 74.9 per cent and average room rates grew 4.5 per cent to £65.

However the latest issue of Hotel Market Outlook (a quarterly report produced by Deloitte using STR Global hotel forecasts) suggests the outlook for 2011 is less positive.

Marvin Rust, hospitality managing partner at Deloitte, said: “We expect London hotels to see revPAR fall 5.2 per cent next year with occupancy and average room rates falling 3.2 per cent and 2 per cent respectively. There are clearly a number of challenges for hoteliers in 2011, including it being a non-Farnborough (airshow) year, the year before the Olympics and the supply of luxury hotels in the capital expanding with the reopening of The Savoy and the Four Seasons. On a more positive note, the rate of appreciation of sterling against both the euro and dollar looks to be overstated, meaning the UK should remain attractive as a destination for overseas visitors.

“On the flip side, our Hotel Market Outlook predicts that hotels in regional UK will see revPAR gains in 2011, rising 4.5 per cent to £46 with both occupancy and average room rates experiencing growth. With the headwinds of job cuts in the public sector and the increase in the rate of VAT we expect these will have an effect in suppressing demand and margins particularly in the early part of next year."