The outlook for London's hotel industry is brighter than forecast, according to a new survey by analysts at TRI Hospitality Consulting. The upbeat report is based on the double-digit growth in revenue per available room (revpar) that followed the early 1990s recession, and suggests that a recovery in the UK hotel sector is more likely than previously thought. TRI has predicted 13% revpar growth in London this year, 9% in 2005 and 7% in 2006.
Managing director Jonathan Langston said: "The early 1990s saw London recover fastest, and the pick-up this time around is following a similar pattern. The historical evidence gives us confidence our current projections are realistic."
The national market has less ground to make up. TRI forecasts countrywide increases in revpar of 7% in both 2004 and 2005, and 5% in 2006. In comparison, 1995, 1996 and 1997 saw double-digit UK revpar growth of 13.3%, 14.6% and 17.8% respectively.
Intercontinental Hotels backed TRI's conclusions. A spokesman said: "Revpar is driven by volume and we are beginning to see volume growth throughout the UK."