London hotels leading the recovery with double-digit RevPAR growth in 2010 (United Kingdom)
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London hotels leading the recovery with double-digit RevPAR growth in 2010 (United Kingdom)
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Category: Europe - United Kingdom - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-11-26
London hotels have experienced such strong trading in 2010 that the city is now one of Europe’s strongest performers in the race for recovery.
Hotels in the capital are expected to achieve an average year-on-year increase in revenue per available room (RevPAR) of around 15% by the end of 2010, putting their performance alongside that of hotels in Frankfurt, Istanbul, Munich, Stockholm and Zürich. Of the 36 European markets we have studied, these five are expected to outperform the rest with solid occupancy growth and a higher average rate than in 2009.
While occupancy is showing continuous gains, RevPAR in London’s luxury hotels overtook 2007 levels through the summer. Growth is expected to continue into next year and beyond, particularly with news of a Royal Wedding in 2011 and the Olympic Games in 2012.
Hotels in Munich have experienced the strongest increase of all the European markets with RevPAR growth of 32% year-on-year. Frankfurt, Berlin and Munich have all enjoyed the stability provided by Germany’s solid conference and events market throughout the year, balanced reliance on domestic and international travel, and a steady hotel pipeline.
Stockholm’s hotels are also performing in the top tier with a 17% increase in RevPAR driven by a steady growth in occupancy of nearly two percentage points and an impressive 13% jump in average rate. Other top performers include Zürich, with a year-on-year increase in RevPAR of approximately 9%, while Istanbul’s hotels recorded a year-on-year improvement of 18%, largely driven by solid growth in occupancy, with monthly levels above those of 2008 since May.
While the leading markets in Europe are showing double-digit RevPAR growth, Amsterdam, Barcelona, Birmingham, Edinburgh, Madrid, Paris, Vienna and Warsaw are also expected to record above average RevPAR growth by the year end.
London is also gaining ground in terms of hotel values. While Paris still leads the way with an average value of €566,000 per room, up 4% year-on-year, London hotel values are catching up and are likely to reach €517,000 per room by the end of 2010, up 7% year-on-year. This year, Geneva and Zürich are expected to switch places, with third-placed Zürich averaging €430,000 per room, while fourth-placed Geneva should achieve an average value of €428,000. Istanbul continues its ascension towards the top and is expected to end the year at an average value of €339,000 per room.
For a complimentary copy of ‘Le Tour d’Europe’ The Race for Recovery visit http://www.hvs.com/article/4958/le-tour-deurope-the-race-for-recovery/
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