Thistle occupancy drops back in London

Occupancy at Thistle Hotels' London properties fell by 2.6% last year.

But the fall, from 78.9% to 76.3%, was offset by a 7.3% increase in average room rates from £64.88 to £68.87, said the latest trading update.

The company's regional hotels performed well, with room rate up 5.3% from £51.97 to £54.75 and occupancy seeing a 3% rise to 65.4%.

Thistle said the fall in London occupancy was caused by hotels being closed for refurbishment, and the effects of a strongpound and economic problems in Asia.

London room rates had risen because the company had placed "less emphasis" on big tourist packages and more on corporate travellers. Computer upgradesin the hotels would improvethe central reservations system and add to the firm's attractiveness to business people, the company said.

Overall, the group saw a 0.4% drop in occupancy and a 6.1% rise in room rates from £64.88to £68.87.

Thistle has 60 hotels, 24 of which are in London.