The UK hotel sector is set for two more good years ahead with room rates in luxury London hotels approaching £360 a night by 2008, according to new research.
The strong economic performance of the UK, robust corporate travel demand, minimal discounting of room rates by hoteliers and booming real estate prices will result in further room rate increases this year and in 2008, PricewaterhouseCoopers said.
The consultancy's Hospitality Directions Europe - UK Hotel forecast predicts that revenue per available room (revpar) for luxury hotels in London will grow by 10.6% this year.
Overall for the UK, revpar is forecast to grow by 5.5% this year and 5.6% in 2008 taking UK revpar levels to £64.16 in 2007 and £67.77 in 2008.
Liz Hall, head of hospitality research at PwC, said: "The good times will continue through to 2008, but at a slower pace despite a great start to 2007. And with 83.5% hotel occupancy in London, the capital is nearly full."
By Daniel Thomas