London hotel occupancy in a post-Olympics slump for next year as business travel weakens
Hotel Russel in London, England. Andy Roberts / Flickr.com
Trouble all around for UK hospitality sector, as operators on all ends are going the feel the effects of overcapacity and lower demand due to economy.
Excerpt from FT
London is poised for a hotel hangover as demand for rooms slackens following a construction boom in the build-up to the Olympic Games.
The capital’s hotel occupancy is projected to drop by nearly four percentage points to 77 per cent in 2013, the lowest occupancy rate since 2005, according to research by PwC, as business travel weakens…revpar is due to fall by 7 per cent to £106 in 2013 as the market falters and the industry feels the effect of there being too many rooms for the level of demand.
Regional hotels are faring worse. Occupancy rates are projected to have declined by 3 per cent to 69 per cent by the end of 2012 as poor weather saw many potential ‘staycationers’ seeking bluer skies abroad.