UK hotel industry set to break sales peak next year

The UK hotel industry is set to break its previous sales peak by next year according to a new report by consultants TRI.

The previous record for revenue per available room (revpar) was set in 2000 when rates hit £50.57.

But this year the analysts predict revpar will average £51.92, a rise of 5.2% from the £49.36 achieved in 2005 and 2.7% up on the 2000 record.

Jonathan Langston, managing director at TRI, said: “Breaching the previous peak is clearly a key landmark for the UK hotel industry. Investors and operators alike will welcome this clear sign of the ongoing strength in the sector.”

The figures also show the UK industry has now enjoyed two years of revpar growth, after suffering three years of decline following 2000.

Progress is forecast to continue in 2007 although at a steadier rate of 4%.

The strongest performance in the past few years has been in London with revpar this year expected to grow 7.5% to hit £84.54. Next year this rate is expected to slow only slightly to 5.8%.

Hotels in the provinces are also expected to continue to grow revpar, although at a more subdued rate. This year the increase is forecast to be 3.6%, a repeat of what they achieved in 2005.

“London has led the way out of the recession but it had also suffered more acutely during it. The provinces have exhibited a more stable performance over the business cycle,” said Langston.

By Jessica Gunn

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