9 December 2021, Virtual
24 February 2022, Virtual
March 2022, Virtual
London hotel rates are expected to grow modestly next year after falling during 2013, according to research from Price Waterhouse Coopers (PWC).
The accountancy firm said that London’s hotel sector had endured a “volatile” 2013 so far due to weak pricing and “tough comparisons” to last year’s Olympics period.
PWC is forecasting a 2.3 per cent drop in average daily rate (ADR) this year in London although it expects a 1.5 per cent rise in 2014 which would increase rates to an average of £138.19 - £1 below the record levels seen in 2012 although it would be £6 lower when inflation is taken into account.
Liz Hall, head of hospitality and leisure research at PWC, said: “A return to some kind of ‘normal’ in 2014 will be welcomed after 2013’s post-Olympic correction.
“London has struggled this year but stronger pricing in 2014 and record revpar are expected. It looks like occupancy, ADR and revpar are heading in one direction, with the right kind growth to put London back on its upward trajectory.”
Hall added that the city continues to see “high rates of new supply” especially in the budget sector.
“It’s no wonder prices and independent operators are feeling the heat with this increase in supply, especially as a large chunk is in the budget segment,” she said.
Outside London, PWC said that rates in the rest of the UK have stabilized with occupancies staying “high by historical standards”.
PWC said that ADR in the UK regions would reach around £60 in 2014 which would still be below rates recorded in 2008 although they would be at their highest level since 2009.
Hall said: “Across the UK, there are still continuing pressures on room rates. This is unlikely to change as consumers push back, book late in the hope of a bargain and use the pricing transparency of the internet to help them make a choice.
“Short lead times, a push for added value and the attitude that a better deal is to be had through booking late looks likely to continue.”