London hotel rates close to £150 as bookings pick up countrywide

LONDON hotels have enjoyed a profitable start to the year, with 80 per cent occupancy and average daily rates of £136.60.

Analysis from PwC found revenue per available room (RevPAR) in the capital rose 5.5 per cent in the first six months, to £87.30.

But London hoteliers could be in for even better takings, PwC predicts, with a forecast of a £140.52 average daily rate (ADR) this year, rising to £145 in 2015.

Regional hotels have also had success, with double-digit RevPAR growth in many cities, and an increase of more than 15 per cent in Belfast and in Glasgow, which hosted the Commonwealth Games.

Liz Hall, author of the PwC UK hotels forecast 2015, predicted London hotels would remain near full. She said this year saw “a great start but then hit some summer trading turbulence. Hotels are confident that the remainder of the year will get back on track.

“The wobbles in summer trading were a combination of fewer sporting events; the impact of the euro and dollar exchange rates making London expensive; the earlier timing of Ramadan and a weaker Farnborough effect.”

PwC also forecast the 2015 Rugby World Cup will be a fillip for hotels.

“The event will be held across the country in Birmingham, Brighton, Exeter, Cardiff, Gloucester, Milton Keynes, Leicester, Leeds, Newcastle and Manchester, as well as London,” Hall said. “With a third of matches set to be played on a Sunday – traditionally a low occupancy night – the event is a great opportunity for hotels.”

However PwC warned hotels were threatened by new technology.

David Trunkfield, hospitality and leisure leader at PwC, said: “Sharing platforms such as AirBnB are growing rapidly, and are expected to continue to do so. Some of this growth could come at the expense of hotels.”

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