BTN Europe presents an overview of business travel and MICE predictions for this year
Thursday 9th September, JW Marriott Grosvenor House
ExCeL London - 30 Sep - 01 Oct 2021
18 October 2021 - Virtual
Hotels in London saw "outstanding" double-digit growth between June and September this year, but next year may see hotel rates fall, warned a leading industry analyst.
Marvin Rust, hospitality managing partner at Deloitte, said: "Hoteliers in London have turned in outstanding restults for Q3 building upon the strong growth reported during the first half of the year."
Between June and September, average room rates rose by 15.6% in London, compared to Q3 2009, from £115 to £133.
Occupancy also rose during the period, from 84.8% to 87.9%, leading the revenue per available room (RevPAR) figures to rise by 19.8% (from £98 to £117).
Next year will prove a challenge, however, as the number of luxury hotels in the city will grow, with the reopening of the Savoy and the Four Seasons.
Hotels will also suffer from the lack of big events such as the Farnborough Air Show, said Deloitte.
As a result, Rust predicted a fall in RevPAR in 2011 of 5.2%, with occupancy and average room rates falling 3.2% and 2% respectively.
He said: "For 2010 we have led the bull and still expect the year to end with cloe to 10% gains in RevPAR. Hoteliers expecting the same for 2011 may be disappointed."