Hotel Performance: Report Reveals Strong Hotel Performance Internationally

A new study by Hogg Robinson Group paints a rosy picture of the international hotel industry. Figures reveal that the Western markets have stabilised with many cities recording rate increases.

Hotel Performance in London

Hotel performance in London was strong despite a difficult start to the year. After heavy snow in the first quarter, London bounced back in April when the eruption of the Icelandic volcano created buoyant leisure demand in the capital.

However, London is the only UK city to report growth (in the region of 1 per cent) and other UK centres have failed to keep up with London’s lead. Bristol in particular suffered a sharp drop in demand during the first half of this year and new supply in the region has had a negative impact on rates. This pattern has been repeated in Edinburgh, Leeds, Manchester and Liverpool.

Internationally, the average length of stay increasing by 9 per cent and it is hoped that newly-adopted revenue management strategies will enable hoteliers to significantly improve their RevPAR. Stronger demand will enable hoteliers to “unbundle” many of the incentives used to attract guests during the period of low occupancy and maximise their revenues.

While it is standard for average rates to be higher in Q2 than in Q1 due to seasonal events and business activity, an 8 per cent rise over the six months (from £148.62 to £160.08) is particularly strong. Although this was not consistent, and it is a little early to predict, it seems to point towards recovery for London.

A full list of the key industry trends noted by HRG is available here.

By Lee Jamieson


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