Average room rates are key driver of growth for London hotels

16th July 2010, 8:37am

London hotels saw revenue per available room (revPAR) rise 9.3% to £102 during the first half of 2010, according to Deloitte, the business advisory firm.

Average room rates were also the key driver of growth, up 7.0% to £129, while occupancy rose 2.1% to 78.9%.

Marvin Rust, hospitality managing partner at Deloitte, commented: "These results are great news for hoteliers in the capital as they continue to build on the double-digit growth reported in Q1 2010. 

"With the latest Deloitte CFO Survey showing financial optimism among many Chief Financial Officers falling to a 12-month low and many seeing a growing risk of a 'double-dip' recession, it is comforting to know that London's hoteliers remain resilient and are implementing the right pricing strategies to fast track the recovery process.

"In the latest issue of Hotel Market Outlook, a quarterly report produced by Deloitte, we reported that London hotels expect to see a 10.4% growth in revPAR in 2010. With the first six months behind us, I am confident that these results will come to fruition, absent any further shocks."

Meanwhile regional hotels have experienced a 4.2% rise in occupancy, to 65.8% during the first half of this year.

Related Articles:

• 10 Jun 2009 - Looking positive for British hotels
• 21 Nov 2008 - Hotel performance affected by financial crisis
• 30 Jul 2008 - London hoteliers benefit from Farnborough Airshow
• 12 Nov 2007 - UK hotel bookings remain strong

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