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Hotels in London to Gain Record RevPAR in 2014

Next year may be extremely successful for hotels in the UK capital. With new signs of stabilization in the country, average daily rate in London hotels is expected to grow. Together with constant high occupancy (the expected average occupancy for 2014 is 81-82%), revenues per available apartment (RevPAR) are to reach new height.

In 2014, the forecasted average daily rate estimates £138.19 (US$215.90). That is just one pound below the record level of 2012 in nominal terms and approximately 6 pounds below if calculated in 2012 prices. The forecasted RevPAR growth estimates 2.4% to £112.80 in total. 2013 has brought some problems to hotels in London as a post-Olympic year, but in 2014 the situation will normalize and stronger daily rates will help the hotels reach record RevPAR.

Regions are also expected to post strong results next year. After several depressive years, regions finally show signs of recovery. This year, there has been only one month with occupancy decline (January). The forecasted 2014 average daily rate for provincial hotels in the UK is around £60 (US$93.74). That is still worse than in 2008 before the crisis, but that’s the best result since 2009. The forecasted growth of RevPAR of regional hotels in the UK in 2014 estimates 1.8%. That is also the best result since 2008.

23.09.2013

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