London hotels are experiencing the highest rates of occupancy since September 2000, according to research by Deloitte. The HotelBenchmark Survey shows occupancy levels reached 83 percent in September, up almost seven percent on the corresponding figures for the first nine months of last year.
The survey also showed an increase of £9 to £73 in revenue per available room (revPAR) for the first nine months of this year. This is a 14 percent rise on the same period last year.
Marvin Rust, hospitality partner at Deloitte says: “With costs under control, London’s hoteliers will benefit this year from the sharp rebound in room nights sold at higher average rates. I expect the momentum to be maintained in the final quarter with further growth in revPAR to follow in 2005.”
Across Europe the UK is the strongest performing region, with revPAR up 9 percent on the same period last year, double the European average.
Other main findings
Outside of the capital, airport hotels have been amongst the biggest winners this quarter, with occupancy up seven percent on the same period last year. This reflects the record breaking year for passenger numbers passing through Heathrow and returning demand at all UK airports.
The strongest growth in London was experienced by hotels catering for the corporate traveller / business conference end of the market (rooms priced at £160 - £200), which recorded a ten percent increase in revenue per available room on the same period last year.
Budget hotels continue to perform strongly, with both occupancy and room rates moving steadily upwards from an already strong base.