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Hotels in London Expect 2012 to be a Year of Records
PricewaterhouseCoopers has published its forecast concerning the performance of London hotels in 2012. The company’s experts think that with the Olympics this year has the chance to become a record year for hotels in the capital of the UK. The expected growth of RevPAR is expected to estimate 2.8%. Occupancy may rise by 1.2% for hotels in London and by 0.9% for the regional UK accommodations, reaching 84% in London and 72% in the province. If these forecasts come alive, this will be the best occupancy for London hotels since the 70s of the previous century and the absolutely best result for hotels outside the capital.
London has two serious benefits this summer – the London 2012 Olympic Games and the Queen’s Diamond Jubilee. Both events attract the attention of the international community. Without them, according to Robert Millburn (PwC’s hospitality and leisure leader), London hotels would have had quite a poor year as tough economic situation is not the best time for records.
ADR level will grow, but its growth will be lower than the growth of RevPAR. As a rule, summer vacationers, who come to London, are high spending tourists. This year the capital will be visited by tourists, who have come to see the Olympics. Among them may be many lower-spending and budget travellers. The gain of ADR is expected to reach 1.2% up to £135 (US$211.77). In province ADR may even fall down to the level of £57 (US$89.42). The room rates in the UK province have not been growing since 2008.
The third quarter of this year may be the most profitable for London hotels. At this time of the year the occupancy may reach 92%. Together with the average room rates at the level of £156 (US$244.71) high occupancy will push RevPAR up to £144 (US$225.89). This is 21% higher than in the same quarter of 2011. Regional cities will not get a significant rise in sales during the time of the Olympics. Only some football cities and cities that hold events can expect their occupancy to have a small boost.
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