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London hotel market sees steady improvement

23 November 2004 by
London hotel market sees steady improvement

London hotels have continued to recover from the slump of recent years, according to PKF hotel consultancy services.

Figures published today show that the average daily room rate in October rose by 6% to £107.85, in comparison with the same month in 2003.

But the capital's occupancy rate slipped by 2.2% to 79.6%, leaving revenue per available room (revpar) at £85.89, up by 3.7% on October 2003.

Outside London, occupancy and room rate figures during October held steady compared with the same month a year earlier.

Average daily room rate crept up from £65.98 to £66.25, while occupancy stood still at 75.6%, producing an increase in revpar at UK regional hotels of 0.4% to £50.06.

Robert Barnard, partner for hotel consultancy services at PKF, said: "The UK hotel industry has achieved another solid performance in October, in marked contrast to that sad October in 2001."

Following the terrorist attacks of 11 September 2001, occupancy in the capital fell to 65.1% with an average room rate of £105.75. Compared with three years ago, revpar in October 2004 is up by 25%.

"This demonstrates not only the impact that major world events can have on London, but also the capital's resilience in bouncing back from such disasters," Barnard added.

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