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First-quarter hotel revpar hit by sharp decline in travel

21 April 2009 by
First-quarter hotel revpar hit by sharp decline in travel

The UK hotel industry experienced a sharp decline in leisure and corporate travel in the first quarter of the year, according to figures from consultancy Deloitte.

Overall, UK cities experienced a decline in revenue per available room (revpar) by an average of £5 (9%), with the regions and London airport hotels worst hit.

Hotels at London's Gatwick and Heathrow Airports saw revpar plummet 23.5% to £44 and 21.9% to £45, respectively as the British Airport Authority reported a 10.1% drop in passengers at UK airports.

Deloitte said the situation had been made worse in London by the surge in new hotel supply associated with the opening of Heathrow Terminal 5, which has several new budget hotels opened recently, in addition to the 605-room Sofitel London Heathrow.

Outside London, revpar fell 10.3% to £41.

Cold snap brings benefits to hoteliers >>

Revpar slumps by 27.7% at London hotels >>

STR Global - Weekly and monthly UK hotel figures >>

By Gemma Sharkey

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