Any hope of the UK's provincial hotels recording a year-on-year improvement in revenue per available room (revpar) last year has finally been extinguished following reports of the sector's first revpar decline since July 2003.
The latest figures from consultancy TRI Hospitality reveal that revpar fell by 1.8% to £46.47 in November 2003, compared with £47.31 for the same period a year earlier. Occupancy was down by 0.5 percentage points to 72.6%, with average room rate falling by1.2% to £63.97.
London's hotels fared better, recording increases over 2002 in September, October and November last year. Revpar increased by 2.5% to £74.97, with occupancy up by 0.3 percentage points to 84.7% and average room rate increasing by 2.1% to £88.50.
TRI said the increases in London had been aided by more incoming visitors from the USA and an increase in business activity in the capital.
Managing director Jonathan Langston said it was a little too early to comment on December's figures, but that London and the provinces were both on track to record year-end revpars of £60.50 and £45 respectively.
He added that 2004 also looked promising: "The economic outlook is positive. There is every reason to believe that we should see some return to greater levels of business-led activity in hotels. It is reasonable to say that 2004 will be better than 2003."
TRI publishes its December and year-end figures later this month.