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London bombings will “leave a mark” on hotels
The performance of London hotels will “no doubt” be hit during the summer peak following the July 7 terrorist bombings.
Hotel consultancy firm PKF said occupancy levels in June were static while rates and productivity showed “modest but healthy” increases.
PKF partner Robert Barnard said: “London’s hotel industry was holding its own during June, pushing up performance levels and maintaining occupancy.
“However, the unprecedented tragic events of July 7 will no doubt leave a mark on the industry perfomance in July and the effects could echo through the next few months.
“We hope to see London and the tourist trade hold up strongly but if the bombings deter both business and leisure visitors then hoteliers will suffer.
“Thoughts of preparations for the Olympics in 2012 have now turned to immediate matters of ensuring London is still a place people want to visit in 2005.”
Barnard added: “The regions were generally in line with London during June – occupancy flatlining whilst average rate and rooms yield rising slowly.
“The attacks on London may reverberate around the UK but we would expect the regions to be more cushioned from this blow than the capital as hoteliers outside London rely more heavily on domestic travel.”
PKF figures for June show London hotel occupancy up by 1% to 82.5%, while average room rates rose by 4.5% to £114.84 and room yield up 5.5% to £94.77. Outside London, occupancy was down 0.6% to 76.2%, average room rate up 3.5% to £67.86 and yield up 2.9% to £51.71.
Report by Phil Davies
Phil Davies
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