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London hotels hold firm despite bombings

22 August 2005
London hotels hold firm despite bombings

London's hotels were not hit as hard by July's terrorist attacks as some feared, according to figures out today.

Research compiled by hotel consultants at PKF found only a minor drop in occupancy figures, while average room rates remained steady throughout the month.

The capital's hotels reported a 4.1 percentage point drop in occupancy to 79.4%, but average room rate was up by 1.2% at £105.01 compared with last year.

Hotels outside London boosted average room rate by 2.4% to £65.48 per room, and daily occupancy fell by half a percentage point to 76.9%.

Robert Barnard, partner for hotel consultancy services at PKF, said: "Considering the global impact of the terrorist attacks on London during July, hoteliers have done well to keep the losses down this much."

However, Bob Cotton, chief executive of the British Hospitality Association, said the figures may not reflect the entire industry and stated there has been a more serious downturn in the budget hotel market.

"Where people used to bring the family up to London to see the sights and stay in a hotel, they are now switching to the provinces. Up until July business held up well in central London, but the new bookings aren't coming in."

by Emily Manson

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