A report by PricewaterhouseCoopers (PwC) this week has forecasted that London hotels are expected to see record growth figures in 2012, largely due to the summer Olympics. Regional hotels are also expected to see a healthy rise in growth.
PwC predicts the capital will see 2.8 per cent RevPAR (revenue per available room) growth and an improvement of almost 1.2 per cent in occupancy, taking the overall percentage to 84. If these predictions are correct, it would be the highest annual occupancy seen in London since the 1970s.
PwC predicts regional hotels will see a rise of 0.9 per cent in occupancy levels to 72 per cent, the highest ever recorded rate.
Commenting on London’s 2012 prospects, Liz Hall, head of hospitality and leisure research at PwC, said: “For London in Q3 we expect occupancy to hit almost 92 per cent, and with rates at £156 pushing RevPAR to almost £144, a growth rate of over 21 per cent over Q3 2011. Many operators expect trading to remain flat in London at best outside Q3 and we continue to forecast slight RevPAR declines in Q2 and Q4.”
PwC did, however, warn that London could suffer a ‘post-Olympics hangover’ as demand dries up at the end of 2012 and looking forward into 2013.