London Hoteliers on Track to Achieve Double-digit RevPAR Growth in 2010
Deloitte, the business advisory firm, has confirmed that hotels in London saw revenue per available room (revPAR) rise 9.3% during the first half of 2010, to £102. Average room rates were the key driver of growth, up 7.0% to £129, while occupancy rose 2.1% to 78.9%.
Marvin Rust, hospitality managing partner at Deloitte, commented: "These results are great news for hoteliers in the capital as they continue to build on the double-digit growth reported in Q1 2010. With the latest Deloitte CFO Survey showing financial optimism among many Chief Financial Officers falling to a 12-month low and many seeing a growing risk of a ‘double-dip’ recession, it is comforting to know that London’s hoteliers remain resilient and are implementing the right pricing strategies to fast track the recovery process.
"In the latest issue of Hotel Market Outlook, a quarterly report produced by Deloitte, we reported that London hotels expect to see a 10.4% growth in revPAR in 2010. With the first six months behind us, I am confident that these results will come to fruition, absent any further shocks."
In Regional UK, hoteliers reported the first quarter of occupancy growth in Q1 2010—after seven consecutive quarters of decline—signalling the start of the recovery in the regions. This trend has continued, with the first half of 2010 seeing a 4.2% rise in occupancy, to 65.8%. Although average room rates are yet to see growth, they are heading in the right direction, falling just 2.3% for the period to £66, just £2 short of the same period last year. As a result, revPAR for the first half of 2010 grew 1.7% to £43.
Marvin Rust added: "Although the recent forecasts from STR Global predict a 5.3% rise in revPAR in Regional UK for 2010, it is still early days in the recovery cycle and with the regions more susceptible to national influences than the London market, the effects of fiscal tightening and government spending cuts remain hard to predict at this time."
Hotel performance in the UK – first half 2010
| Occupancy (%) | % change | Avg room rate (£) | % change | RevPAR (£) | % change | |
|---|---|---|---|---|---|---|
| Regional UK | 65.8 | 4.2 | 66 | -2.3 | 43 | 1.7 |
| London | 78.9 | 2.1 | 129 | 7.0 | 102 | 9.3 |
All analysis in GBP. All data is daily STR Global daily data covering the period from 1 January – 30 June 2010.
About Deloitte
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