London hotels see rises after summer brings tourists flocking into the capital

AVERAGE room rates in London hotels have increased for the first time in two years, as the summer weather boosted trade.

Revenues per available room (revpar) jumped by 19.8 per cent to £117 in the quarter to 30 September – fuelled by a 15.6 per cent increase in average room rates, according to survey by accountants Deloitte.

Across the country revpar jumped 10.8 per cent to £49 after a six per cent increase in occupancy to 74.9 per cent and a rise of 4.5 per cent in the average price charged to £65.

Demand for rooms in the capital grew thanks to an influx of Arab travellers in the lead up to Ramadan, as well as London Fashion Week and London Design Festival towards the end of the quarter.

However, Deloitte predicted London’s revpar will fall 5.2 per cent next year with occupancy and room rates falling 3.2 per cent and two per cent.

Marvin Rust, hospitality managing partner at Deloitte, said: “There are clearly a number of challenges for hoteliers in 2011, the year before the Olympics and the supply of luxury hotels in the capital expanding with the reopening of The Savoy and the Four Seasons.”

Regional hotels are expected to see revpar gains next year, rising 4.5 per cent with both occupancy and average room rates experiencing growth across the board.