Outlook for hotels during Olympics less positive than first predicted

29 February 2012 by
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

E-mail your comments to Neil Gerrard here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.catererandhotelkeeper.com/tabletalk

Catererandhotelkeeper.com jobs

Looking for a new job? Find your next job here with Catererandhotelkeeper.com jobs

Blogs on Catererandhotelkeeper.com ](http://www.catererandhotelkeeper.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[E-newsletters](http://www.catererandhotelkeeper.com/email-newsletters.htm)[ For the latest hospitality news, sign up for our E-newsletters
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking