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According to a Deloitte survey, 2007 was a great year for the UK hotel market: there was a substantial increase in revenue per available room (revPAR) in London and a strong growth across the regions. During 2007, revPAR in the capital increased by 10.8%. The increase in regional UK hotels was less noticeable - 4.4%; however, this was still an increase in gains, marking the fourth year of UK hotel industry growth.
Average revPAR in London has increased from £99 to £110, reaching its peak since the year 2000. London is followed by Glasgow, with an increase of 10.5%. The city with fastest growing hotel market has been Aberdeen, where the revPAR has grown by 17.2%.
However, the growth in 2008 is threatened by a weakening economic situation. According to Marvin Rust, Hospitality Managing Partner at Deloitte, "with an increasingly gloomy global outlook it would be brave to predict that 2008 will be as good as 2007."
Roger Bootle, economic adviser to Deloitte, also says that the following year will be challenging for hotels in the UK, as the growth of consumer spending is expected to slow down from around 3% last year to about 2% this year.
According to Marvin Rust, the credit situation shouldn't affect new hotel developments: despite the risen cost of financing new developments, with land scarce and hotel projects having long build times, these are expected to continue principally unaffected. New supply will remain subdued, and the demand is high as the world's attention on London is growing nearing 2012, he says.
More articles about hotels around the globe:
Pre-Olimpic Bustle in London Hotel Industry
Capsule Hotels Coming to Europe
UK Hotel Industry News
2007: the best year for the French hotel industry since 2000
French and UK Hotels are Leaders in European Hotel Industry
Cave hotels
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