Hotels in London ended 2010 with double-digit revenue per available room – or revPAR – growth up by 11.9% on the previous year to £112.
Marvin Rust, hospitality managing partner at Deloitte, said of the results from hotel market research firm STR Global: “Average room rates have been the key driver of growth this year, with £12 being added compared to 2009 and now stand at £136.”
“Performance in the regions also ended the year on a high note, with revPAR up 3.9% to £46.”
STR Global believes the outlook for 2011 is more challenging, especially for London. It predicts a 2.2% rise in revPAR for London, while regional UK is expected to report stronger growth than the capital, up 4.4%.
However, Deloitte is more optimistic on London and expects the capital’s revPAR to post a healthier growth than predicted by STR Global.
Rust continued: “With future demand for hotel rooms in both London and the regions beginning to weaken, ‘caution’ may well be the buzz word for next year. It is interesting to note, however, that the econometric models predict a strong start to 2011 before a slowdown in the second half of the year.”
Nick van Marken, global head of advisory for tourism, hospitality and leisure at Deloitte, noted: “Against a backdrop of significant restructuring across the UK hotel industry, London has seen a spike in investment activity in 2010. This really underpins the city’s inherent attraction to global investors, and demonstrates that even in difficult times, prime hotel property remains in demand.”
annabel.dixon@estatesgazette.com
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