First sign of recovery in London revenues

Business at London's hotels remained poor in the final month of 2001, but the rate of decline is slowing, said consultant Andersen last week.

According to its latest Hotel Industry Benchmark figures, London hotels suffered a 12.1% decline in revenue per available room (revpar) to £78 in the year to December 2001 compared with 2000.

Nick Van Marken, partner in hospitality services at Andersen, said the overall fall was largely the result of the dramatic declines of September (a 22% revpar drop), October (35%) and November (27%).

In December revpar fell by 21%, and Van Marken said the slowing in the rate of decline was significant.

Outside London, the regions ended the year positively, with revpar up by 1% in England to £43, up by 2% in Scotland to £40, and up by almost 16% in Wales to £39.

Andersen said the performance of the Welsh hotels reflected strong trading conditions in Cardiff this year, against poor trading last year when new hotel openings caused a glut of bedrooms. The National Stadium, it said, had been a major benefit to Cardiff hoteliers.

Van Marken was hopeful that the worst was now behind the industry.