London hotels boosted revpar by 12% in 2010
London hotels achieved double-digit revenue per available room (revpar) growth last year, according to a Deloitte analysis of daily figures from STR Global.
Daily results up to and including 31 December showed revpar increases of 11.9% to £112. Performance in the regions also ended the year on a high note, with revpar up 3.9% to £46.
Marvin Rust, hospitality managing partner at Deloitte, said: "Hotels in the capital performed particularly well in the final two quarters of the year. Average room rates have been the key driver of growth, with £12 being added compared with 2009 and now stand at £136."
The outlook for 2011, however, is uncertain, especially for the capital, Rust warned.
"GDP is expected to rise by just 1.3% this year, VAT increased to 20% on 4 January and retailers are expecting more challenging operating conditions," he said.
"On the positive side, the royal wedding and a weaker pound against the dollar will no doubt bring more US travellers to London."
Deloitte estimates that total transaction activity in London hotels in 2010 was in excess of £1bn.
Nick van Marken, global head of advisory - tourism, hospitality & leisure, said: "Against a backdrop of significant restructuring across the UK hotel industry, London has seen a spike in investment activity in 2010. This really underpins the city's inherent attraction to global investors, and demonstrates that even in difficult times, prime hotel property remains in demand."
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By Daniel Thomas
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