UK Hotel Industry Achieved Growth of 6.9 Percent in 2007

2007 was a good year for the UK hotel industry with double-digit growth in revenue per available room (REVPAR) in the capital and a healthy increase across the regions. Latest results from the HotelBenchmark Survey by Deloitte’ show that during 2007 REVPAR in London increased by 10.8 percent.

Against this, the performance of the regional UK market was more muted at 4.4 percent, but this was still an increase in revenue and marks the fourth year of consecutive growth.

London’s 10.8 percent growth in REVPAR came on top of growth of 16.8 percent in 2006. Average REVPAR has increased from £99 to £110, to reach its highest level since the technology boom days of 2000.

Aberdeen retains the top spot with the fastest growing REVPAR of any UK hotel market, enjoying impressive growth of 17.2 percent thanks to strong weekday business demand from the North Sea oil industry.

However, with large oil producers saying they will be reducing North Sea oil production next year, growth in 2008 may be more restrained. Outside London, Glasgow follows with growth of 10.5 percent.

However, the REVPAR of both Glasgow and Aberdeen is still substantially lower than Edinburgh which, at £69, commands the highest rates outside London.