ExCeL London - 30 Sep - 01 Oct 2021
18 October 2021 - Virtual
28 October - London, UK
But occupancy holding up
London hotels saw a drop of 7.3% in their revPAR (revenue per available room) in June compared to the same month in2008.
But figures from hotel analysts STR Global showed that occupancy in the UK capital had dropped by less than 1% year on year to June.
Marvin Rust, hospitality managing partner at Deloitte, a business advisory firm which analysed the figures, said the rate of the decline in revPAR in London had "subsided by a couple of percentage points since April."
He added: "Year-to-June occupancy is down by less than one percentage point to 78%. Although strong occupancy has come partially as a result of a 6.4% drop in average room rates, it is important to start pushing up average room rates now that occupancy is stabilising."
Deloitte said that the rate of decline in revPAR across the British regions has accelerated over the past month by 1% to 13.7%.
It said hotels in Glasgow, Edinburgh and Newcastle had done "pretty well so far this year" with revPAR falling 1.6%, 4.5% and 4.9% respectively.
Glasgow was among the best performing cities Glasgow with 71.8% occupancy and with average room rates dropping by only 0.8%.
It added: " Despite the economic conditions, the city continues to attract both leisure and corporate demand by hosting a number of world class concerts and some of the lowest average room rates in the country (£64) are attractive to the Meeting, Incentives, Conventions and Exhibitions market."
But Deloitte said that airport hotels in the UK were among the worst affected with revPAR falling by more than 20% at both Heathrow and Gatwick.
It blamed falling airport traffic and fewer cabin crew staying in hotels because of airline capacity cuts.
Mr Rust said: "The jury is still out about when the UK economy will recover but currently most are anticipating a sluggish recovery in 2010.
"Regional UK hotel performance has a strong correlation to UK gross domestic product performance and should start improving as the recession subsides.
"However, regional performance could be buoyed by strong domestic demand for tourism this summer as more Britons holiday throughout the UK.
"Overall, hotels in both London and the regions have held up exceptionally well in the global economic downturn with revPAR down by only 11.1%, especially when compared to other countries across Europe, some of which are seeing revPAR drop up to 40%."