Last year was one of contrasts for the British hotel industry, with hotels enjoying strong revenues and occupancy until August when they began to feel the effects of the economic downturn.
According to Deloitte, hotels in London reported strong revenue per available room (revPAR) up 7.2% in the year to August and occupancy remained healthy at 80.7%. However, in September revPAR saw a 5.4% drop and occupancy tumbled. The final quarter is expected to be the weakest of the year.
In the regions it was a similar story. The year to August 2008 saw revPAR rise 0.6% and occupancy dip slightly to 70.1%. As the credit crunch bit in September, revPAR fell 3.4% and occupancy dropped 3.6%.
Hospitality managing partner Marvin Rust said: “Looking ahead, 2009 will be an extremely difficult year for hoteliers in both London and regional UK, with further falls in revPAR to come. In a downturn, London is normally hit harder…but the capital will be the first to bounce back when recovery begins.”