London Hotels Room Rates Drop in 2009

Deloitte – the globally renowned business advisory firm validates the drop in the revenue per room in London hotels. The authority announced that the drop in room rates of the hotels is continuing to slow down. Yet, the hotel industry throughout UK is still suffering to a great extent. As compared to the global scenario of the hotel industry, the hotels in London have done exceptionally well as their revenue per available room is down by just 11.1%, which is less than the hotels in other parts of Europe. The Managing partner of hospitality at Deloitte commented that the RevPar is down by 7.3% till now and the rate of decline has fallen down since April 2009.

As per the survey conducted by Deloitte, the room occupancy of UK hotels is 68% and the share of London market in it is 78%. The average room rate of luxury hotels in London is approximately 122 pounds, which is certainly the highest among the rest of the parts in UK. As far as the average and cheap hotels are concerned the room rates are roughly 64 pounds which is the lowest room rates in the kingdom. Also the revenue per available room in the city is 95 pounds, the fall in which is still less than the other parts of England. Although the hotel market in Glasgow, UK has also done remarkably well and is considered as the least affected market and the next in the queue is London. To read more on the growth of London hotels refer to my last post - London Hotel News.

Despite of the recession affected economic conditions; London however is the most desired tourist’s destination in the world. The city attracts millions of tourists every year. The city accomplishes the needs of all whether on business or on leisure trips. London is well known for organizing a wide variety of vivacious events and festivals. It tremendously meets the need of corporate demand by offering world class business facilities such as well equipped conference rooms and presentation equipments. The rates of the hotel are extremely attractive for the corporate clients and hence it is one of the busiest markets in the country to host corporate events.

On the other hand the performance of the Airport Hotels in London is the most awful. The revenue per available room of the Heathrow airport hotels and Gatwick Airport hotels have fallen more than 20% till June 2009. The drop down in the passenger traffic of both these airport hotels has also badly affected. The conditions of the regional hotels in UK and nearby area are also expected to improve as the period of recession subsides. The Revenue per room in London accommodations were down by just 11% whereas the same in the countries across Europe drop up to 40%. Thus it can be said that the hotels in London have truly held up outstandingly well in the global economic downturn.

The data as per the Deloitte and STR Global shows that the hotel industry in the capital of UK – London has an immense strength to perform well even during the tough time of the economy.