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Occupancy drives double-digit revpar growth in London hotels

13 April 2010 by
Occupancy drives double-digit revpar growth in London hotels

London hotels have enjoyed double-digit growth in revenue per available room (revpar) during the first quarter of 2010, according to business advisory firm Deloitte.

Revpar growth of 10.1% to £94 was driven by occupancy which rose by 5.4% to 76.2%, while average room rates increased 4.5% to £123.

Marvin Rust, hospitality partner at Deloitte said the start of 2010 has seen London hoteliers build upon the growth reported in the final quarter of 2009.

"Performance was, however, affected by Easter being a week earlier this year, as the drop in business travel reduced revpar in the last week of the first quarter. Without this, London's performance would undoubtedly have been stronger," he said.

"In just three months though, revpar growth has more than doubled compared to Q4 2009 results, and reconfirms that London hoteliers are on a fast track to recovery."

The latest figures showed that weekday performances are now stronger than weekends, indicating the start of a recovery in the corporate market.

Hotels outside the capital continue to struggle, showing a 1% decline in revpar during the first quarter of 2010. This largely reflects a snowbound January as both February and March showed revpar gains. Together with the Easter effect, this may have been enough to turn what would have been a positive first quarter result into a negative one.

Regional hotels are now seeing growth in occupancy, up 3.4% to 61.2%.

See our Trends and Data pages for more hotel performance figures.

Weekly hotel revpar rises by 13.6% in London and by 4.7% in regions >>

London hotels leading Europe out of recession, says report >>

European hotel rooms achieve highest prices since October >>

European hotel values slump by 25% in past two years >>
By Janet Harmer

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