Post-Olympics hangover for London as occupancy rate falls

 
Kasmira Jefford
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A STUDY out today predicts that Britain’s hotels industry will next year suffer its lowest occupancy levels since 2005.

Accountancy giant PwC said Revenue Per Available Room (RevPar) is set to rise four per cent to a record £114.71 this year, driven by one-off events such as the Jubilee and the Olympics.

In 2013, however, RevPar is forecast to fall back by seven per cent to £106.42, as supply issues, the economy and comparisons with the 2012 Games weigh against it.

Occupancy levels are expected to fall 80 per cent this year, a fall of almost two percentage points on 2011, and will fall a further 11 per cent in 2013.

Liz Hall, head of hospitality and leisure research at PwC, said: “It’s hard to feel confident about 2013; there will be winners but a weak economic and travel environment, a fight for market share and more new rooms to fill mean many will feel the hit.”

Hall added that 8,000 number of new rooms come onto the market from new developments due to the Olympics: “In a weaker travel environment this will inevitably take longer to absorb and will impact occupancy rates.”