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Hoteliers did not profiteer after bomb attacks, says report

13 July 2005
Hoteliers did not profiteer after bomb attacks, says report

Hoteliers did not profiteer after the bomb attacks on London last week, according to a new report released today.

Figures from hotel real estate consultants HVS International show that achieved room rates in top hotels across the capital remained consistent from Tuesday to Thursday, before dropping the day after the attacks.

Room rates averaged £148 on Thursday (7 July) compared with £149 on Wednesday, £147 on Tuesday and £143 on Monday.

Occupancy across the hotels surveyed was 84% on Thursday night, a drop from 93% on Wednesday night.

Russell Kett, managing director of HVS International confirmed the results help refute the accusations levelled at London hoteliers that they had deliberately raised their rates to capitalise on the tragedy.

"The figures amply demonstrate that, on average, no such profiteering occurred in the 90 upscale hotels, representing 26,800 rooms, covered by the survey. The figures for Monday to Thursday last week follow the same trends as were demonstrated in the same week last year," he said.

However, occupancy and rates dropped over the weekend. Occupancy was down by 13% on Friday and Saturday and 7% on Sunday compared with last year.

The World Market Research Centre today predicted the London bombings will cost the UK up to £3b and have the same effect on the economy as a natural disaster.

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