The UK hotel market remains strong despite tough economic conditions, research has revealed.
Deloitte’s HotelBenchmark Survey, unveiled at its European Hotel Investment Conference last week, showed that revenue per available room across the UK had increased 6.8% in the year to September.
Five UK cities saw double digit growth. Scotland saw the best performance with revenue growth of 8.9% and Aberdeen had the highest growth of all UK cities at 18.6%.
Corporate demand from the oil and gas industry means the average room rate in Aberdeen is now £74, said Deloitte.
London continues to have the highest occupancy levels in the UK at 82.7%. The average room costs £126 a night, up from £114 in 2006.
Deloitte hospitality managing partner Marvin Rust said: “Fears of a slowdown following this year’s global financial crises have not yet materialised in the UK hotel market.
Whilst growth has slowed slightly from the first six months of the year, we remain positive about the outlook for hotel performance.”
An increase in visitors from Europe and Asia has offset a decline in visitors from the US, he added.
Ramsey Mankarious, chief executive officer of the hotel investment firm behind the Savoy Hotel in London, Cedar Capital Partners, said: “The crash has less effect on the luxury market; it’s a very safe place to be in these times. The top and bottom of the market will remain strong.”
Kew Green Hotels founding director Jeremy Richardson said hotels relying on business travellers would be unaffected by the financial crisis.
He said: “People will still have to travel round the country doing business. We have seen no effect so far.”