Hotels in London are expected to smash occupancy levels next year thanks to a rise in business travel, a UK hotels forecast has revealed.
Pricewaterhouse Coopers report indicates that hotels in the city will witness a growth of 4.1 per cent in 2011, causing occupancy to increase as much as 85 per cent to give approximately 10 per cent Revenue Per Available Room (RevPAR) growth.
As reported by Meetpie, PwC also believe that the outlook is also set to improve for those hotels outside of the capital next year. The average room rate (ARR) is expected to grow 2.5 per cent, although there will be a significant slowdown in occupancy growth.
RevPAR in the provinces is forecast at 3.2 per cent, but the report warns that it will be highly dependent on prospects for regional and local economic and domestic business travel.
Business travellers are steadily returning to the UK, with the improving economic conditions encouraging the revival of corporate group and transient business travel.
Separate research conducted by PwC found that there has been an increase in the number of training courses and day events being held at conference centres, causing event managers in the capital to be more optimistic than they were six months ago. More than half of the meeting operators questioned said they were optimistic about the year ahead, but just under a quarter said they remained pessimistic.
“The improving economic conditions are stimulating a revival in both corporate group and transient business travel. This should reduce the proportion of rooms that hotels sell through discounted channels and have a positive impact on ARR,” said the report.