The UK hotel industry had an impressive 2007 and is in a strong position to weather the global economic downturn, according to a new report from consultancy PKF.
Hotel Britain 2008, released today, revealed that the hotel sector achieved consistently high occupancy and average room rate levels in 2007, with London reaching record-breaking levels.
In the capital, occupancy reached close to 83% over the year. Average room rate increased 8.9% to £130.17 and this meant revenue per available room (revpar) increased 10.3% to £107.96.
These figures are the highest the capital has seen since PKF started collecting data in 1974, while occupancy was the highest since 1997.
Hotels in the regions had a good year with steady increases in average room rate over the year, the main driver behind the 3% rise in revpar.
Robert Barnard, partner at PKF, said that while the UK's hotel industry may see slower growth in 2008, strong investment and new concepts will shape and drive the market.
"The variety and key product quality invested into the budget sector may be a key driver for a positive performance in the UK hotel market," he said.
"Continued investment within the industry will ensure interest in UK hotels; however, the economic forecasts predict lower consumer spending due to the credit crunch and a slowdown on the housing market."
By Daniel Thomas
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