London hotel industry set for record revenue growth in 2014

 
Kasmira Jefford
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LONDON hotels are set to have a record 2014 according to the latest hotels forecast from PwC, after tough comparisons with the 2012 London Olympic Games caused a sluggish start last year.

Revenue per available room (revpar), a key industry measure, is expected to rise 2.4 per cent to a record £112.80 thanks to a return in consumer confidence and rising demand, the accountancy firm said yesterday.

It also expects a bounce back in the regions, with a revpar growth of 1.8 per cent to nearly £42.50 – the highest level seen since 2008.

“The sector keeps evolving and London has continued to soak up all the new supply that has opened through 2012 and 2013 and no doubt it will in 2014 as well, when a further 6,000 rooms and some exciting new brands open,” Liz Hall, head of hospitality and leisure research at PwC, said.

However she warned that despite the improvement, the environment would remain challenging with consumer spending expected to remain squeezed until 2015.

“New supply remains relatively high and improved trading will encourage more development and competition in the sector,” she said.