Outlook for hotels during Olympics less positive than first predicted
The London Olympics will still bring a positive benefit to occupancy levels and revpar in the hotel sector, but not at the level previously hoped for.
That's the assessment from hotel market research firm STR Global, which has downgraded its predictions for the games this summer.
The Olympics are expected to bring about a 1.5% increase in revpar by year end, according to Konstanze Auernheimer, director of marketing and analysis at the firm. Meanwhile, occupancy is expected to peak at 94% in the month of July, before dropping back in the traditionally quieter month of August.
While still positive, the forecast is lower than the 1.9% increase in revpar STR Global originally predicted in November last year.
Meanwhile, the regions will see a slight increase (0.4%) in average daily rate for the year, while occupancy is expected to drop by 1.8%, due in part to the displacement effect of the games.
PWC predicts record year for both London and regional hotels in 2012 >>
Hotels say they won't hike prices as LOCOG returns 120,000 rooms >>
By Neil Gerrard
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