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London to Become More Successful than Provincial UK in 2013

News It seems that hotels in London will have another successful year, despite the fact that hotels in other regions of the country are to struggle with numerous difficulties. This information is indicated in the latest report published by PricewaterhouseCoopers.

According to the forecast, hotels in the UK will suffer from weak demand that will surely lower their revenues. The forecasts are even worsened by weak GDP growth expectations (approximately 1%) that are likely to result in the decline of RevPAR (revenue per available room) of 2% for provincial hotels. UK hotels are likely to reach a critical RevPAR of just £60 (US$91). Occupancy is expected to fall by 0.7% in 2013 to 72%. This will make ADR (average daily rate) fall by 1.2% to £82 (US$123) in average.

London is expected to lose even more in occupancy in 2013 – 2% to 79% in total. Consequently, ADR will lose 1.2% and is likely to estimate £137 (US$206), and RevPAR will lose 3.2% and will estimate £108 (US$162). These figures do not look very promising, but the forecasted revenue is still 18% higher than in 2009. Hotels in London will also have to deal with the growth of supply that will add 4% in 2013. If analysing provincial UK hotels only, the situation may seem better at first glance. The expected decline of occupancy in 2013 is just 0.2% to 70% in total. However, together with decline of ADR of 1.2% to £58 (US$87) and decrease of RevPAR of 1.4% to £41 (US$61), provincial hotels will fall down to the revenue level worse than even in 2010.


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