London Hotels Fear Post-Olympics Slump


Hoteliers' confidence sapped by the state of the UK economy and the continuing financial turmoil in the Eurozone

London Hotels Fear Post-Olympics Slump.

FOLLOWING AN OLYMPIC SUMMER which saw London hotel profits shoot up by 90%, the capital's hoteliers are cooling their forecasts for 2013.

A little over a third (35.7%) expect their Revenue per Available Room (RevPAR) to be higher next year compared to 2012. A quarter (25.0%) expect their RevPAR to be lower, while the remainder (39.3%) expect it to stay the same.

The figures have been compiled for the latest "Hotel Confidence Monitor" by industry-watcher HotStats. Respondents cited they expect the state of the UK economy and the continuing financial turmoil in the Eurozone to be the most critical factors impacting hotel demand in 2013.

This pair of influences were the prevalent concerns for 50.9% of general managers surveyed with hotels in London and 34.6% of provincial hoteliers. Among the other main concerns for hoteliers in the UK included 'the strength of sterling damaging domestic tourism levels and inbound visitors'. A further 7.7% of London hoteliers said that a post-Olympics slump was a real concern.

"Aside from the post-Olympic slump, going into 2013 the major influences on performance for UK hoteliers are expected to remain the same as in recent years, with the state of our economy and the lack of a resolution in the European crisis being the primary concerns" said Mark Dickens, managing director of HotStats.

"Additionally, the recovery in the strength of the sterling poses a real threat to leisure demand levels at hotels throughout the UK, a sector which has been the saviour of demand for many Provincial markets throughout the recession."

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