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New report sees brighter future in London hotels

06 October 2004
New report sees brighter future in London hotels

The outlook for London's hotel industry is brighter than forecast, according to a new survey by analysts at TRI Hospitality Consulting. The upbeat report is based on the double-digit growth in revenue per available room (revpar) that followed the early 1990s recession, and suggests that a recovery in the UK hotel sector is more likely than previously thought. TRI has predicted 13% revpar growth in London this year, 9% in 2005 and 7% in 2006.

Managing director Jonathan Langston said: "The early 1990s saw London recover fastest, and the pick-up this time around is following a similar pattern. The historical evidence gives us confidence our current projections are realistic."

The national market has less ground to make up. TRI forecasts countrywide increases in revpar of 7% in both 2004 and 2005, and 5% in 2006. In comparison, 1995, 1996 and 1997 saw double-digit UK revpar growth of 13.3%, 14.6% and 17.8% respectively.

Intercontinental Hotels backed TRI's conclusions. A spokesman said: "Revpar is driven by volume and we are beginning to see volume growth throughout the UK."

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