London hotels weathered the financial storm

Sharon Miller

Hotel occupancy in London has experienced a marginal slide in comparison to the rest of the country in 2009, reveals data released this week by the business advisory company Deloitte.

Overall, hotels in the UK witnessed revenue per available room (revPAR) decline by 10.9% during the first three quarters of the year, to £60.

Hotel occupancy rates have also decreased by 4% to 70.5% overall, despite a 7.2% average reduction in the price of a room to £85.

The capital performed well over the whole of the UK, seeing a slide in room occupancy of just 0.2% to 80.4% from January to September. London saw a slide in revPAR of 7.4% to £98 and £10 off the average rate for a room.

Deloitte’s hospitality managing partner Marvin Rust said the London numbers are very impressive since the capital managed to achieve over 80% occupancy during one of history’s worst economic downturns. He added that London is demonstrating that it’s one of world’s most resilient cities.

Marvin Rust said that London benefited from a particularly strong demand in leisure during weekends.

Deloitte recorded that the best performance in terms of revPAR, was seen in Glasgow, which experienced a slide of only 1.4%, with Edinburgh, Newcastle and Cardiff also showing strong numbers.

Hotels at Heathrow and Gatwick airports proved to be amongst the weakest performers showing the largest declines, with revPAR dropping 22%.

Heathrow saw a drop in passenger traffic of 2.6% year-to-August. This therefore resonated in the surrounding hotel performance which has also been affected by the surge in new rooms entering the market stemming from the launch of Terminal 5 last year.

Gatwick also saw a passenger drop with 8.9% less travellers year-to-August, although the airport did witness an increase in domestic and European traffic in August, which is likely to bring positive results on hotel demand in the future.

 

 

 

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Filed under Business & Finance, Hotel Chains, Travel News, UK News



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