Hotel Performance Remains Behind on 2001

Occupancy, room rates and revenue remain down in the capital’s hotels, according to consultants Andersen. The latest figures from Andersen’s Hotel Industry Benchmark survey reveal that occupancy in central London fell by 1.7% in March to 75.8%, compared with 77.1% in March 2001. Average room rate dropped to £94.00, down by 14.4% on the £110.00 achieved in the same period last year. Revenue per available room (revpar) fell by almost 16% to £71.00, against £85.00 in 2001. In outer London, the area outside the North and South Circular roads but within the M25, figures were also down. Occupancy fell by 13.1% to 64.6%, compared with 74.3% the previous year. Average room rates dropped by 6.4% to £65, against £70.00 in 2001. Revpar was down by 18.6% to £42.00, compared with £52.00 last year. In the year-to-date, occupancy in central London fell by 3.6% to 70.5%, with average room rate dropping by 11.8% to £94.00, and revpar down by 15% to £66.00.

In outer London occupancy has dipped by 9.4% to 63% in the year to date, average room rate fell by 5.4% to £66.00, with revpar falling by 14.3% to £42.00. Figures out yesterday from PKF also revealed a continuing poor performance at the nation`s hotels.