London hotels to have highest growth in 2015
LONDON hotels are set to outperform their European rivals next year, as rising room rates and visitor numbers help to boost fortunes.
An improving economy and a rise in the number of people travelling will mean hotels in all of Europe’s 18 major cities except for Madrid report growth this year and next, according to research out today by PwC.
Dublin, followed by London and Paris in second place, are expected to enjoy the strongest growth this year, with the accountancy firm forecasting a rise in revenue per available room (revpar) of 5.2 per cent and 3.8 per cent respectively.
But in 2015, London is set to leapfrog Dublin with a revpar growth of 5.2 per cent as hoteliers hike their prices for a room in the capital.
“In 2015 we expect things to get even better as hoteliers capitalise on the good times,” PwC’s head of leisure and hospitality research Liz Hall Said.
“A five per cent jump in rates takes the average daily rate to £148.70 and revpar growth to £123.20, again higher than anything seen before in nominal terms,” she added.
Occupancy levels are also set to rise to around 83 per cent – the highest since the mid-1990’s, PwC said.