London hotels set to smash occupancy levels by 2011

20th September 2010, 8:01am

London hoteliers could see occupancy levels reach record levels by 2011, according to the latest PricewaterhouseCoopers (PwC) forecast.

The report revealed that the return of the business traveller and international demand should see the London rate rise by 7% for the current year.

Further figures found that robust rate growth (5.1%) should continue in 2011 with strong occupancy growth of 4.1% - taking room rates to £130, occupancy to 85%, and RevPAR to over £110. This is over £9 higher than 2010 and £17 higher than 2009 in terms of RevPAR.

Robert Milburn, UK hospitality & leisure leader, PwC, said: "London's hotel scene continues to bask in the glory of its recovery, and (apart from April 2010 which was impacted by an early Easter) has now seen 11 consecutive months of occupancy growth. Much will depend on the wider economy, confidence and continued favourable exchange rates, but we expect London to maintain this pace."

"If inflation were stripped out ARR would still have some way to go to hit historic peaks but, on current trading, occupancies are already breaking records. In fact, we are forecasting record highs for each quarter in 2011, topping out at 90% in Q3."

Meanwhile occupancies in the provinces have improved but rates are still struggling to get back into positive territory. In 2011 the provinces should see a 0.7% occupancy gain, taking occupancy to 67%.

Related Articles:

• 22 May 2009 - London occupancy stays above 80%
• 28 Apr 2009 - Lower hotel room rates keep occupancy high

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