Europe's hotels beat worsening economy

European hotels have remained resilient despite worsening economic conditions, according to a survey by consultant Andersen.

The Hotel Industry Benchmark survey, which monitors the performance of more than 3,000 hotels across Europe, reveals that, in the year to June, overall demand fell by 1.1%.

Despite this, average room rates grew by 4.7%, contributing to a growth in revenue per available room (revpar) of 3.5%.

Revpar growth was greatest in southern Europe, with Paris, Rome, Milan and Barcelona all reporting double-digit revpar growth in the six months to June.

London fared less well. June was the sixth month in a row when the city saw its average occupancy level fall. It dropped by 4.9% to 75%, while the average room rate saw an increase of 2.8%. Revpar fell by 2.2%.

The report says UKhotels outside London increased average occupancy and average room rate, with revpar up by 5.5%.

Julia Fenton, head of hospitality knowledge services at Andersen, said: "With hoteliers standing firm on average room rates, we do not currently anticipate a fall in overall revpar this year."