Indeed both the London and provincial Rooms Revpar performance is well on course to achieve the TRI forecast for 2003 of £60.50 and £45.00 respectively
London hotels continue to build upon the improvement achieved in five of the last six months; indeed, for the last three months the trend has turned to growth over 2002.
Again, London reported positive Rooms Revpar growth for the month of November of 2.5 per cent. Small improvements were recorded in both Room Rate and Occupancy. There are many key business demand generators likely to affect London hotel performance. Two key factors that have been fundamental to the improvements seen this month are:
• Another month of increases in North Atlantic passenger numbers, now recording a five per cent improvement on last year1.
• The “strongest expansion of business activity in the capital since June 1997”2.
1 British Airport Authority passenger numbers report for November 2003
2 The Royal Bank of Scotland PMI (Purchasing Managers Index) London Report
In contrast to the London performance, provincial hotels recorded their first Rooms Revpar decline since July this year (-1.8 per cent). November’s performance has, thus, finally extinguished any hope of 2003 improving upon the 2002 Rooms Revpar performance for provincial hotels. This decline may be partly attributed to the rise in base rates, continued uncertainty in the housing market and an apparent weakening in consumer spending.
Logos, product and company names mentioned are the property of their respective owners.