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in RevPAR for December; Top-end of the Market Continues to be Most Impacted |
London - January 25, 2002 - Andersen, the leading adviser to the international hotel industry, today releases preliminary 2001 results for the UK and London. With contributors to the survey representing over 100,000 bedrooms across the country, the Andersen Hotel Industry Benchmark Survey is the most comprehensive survey available to operators, developers, investors and financiers. Nick van Marken, the Andersen partner who leads the hospitality consulting practice in Europe, comments that the UK hotel industry has confounded many observers by turning in a very creditable performance. "Despite the impact of a challenging domestic and international economic environment; a relatively strong sterling exchange rate compared to the US Dollar and Euro; the outbreak of Foot and Mouth Disease and the atrocities of September 11, UK hoteliers have reacted swiftly to changed market conditions�. He added, "Whilst London hotels suffered an overall 12 percent fall
in revPAR during 2001, this was largely the result of the dramatic revPAR
declines of September (22 percent), October (35 percent) and November (27
percent). The decline of 21 percent in December represents a slowing
in the rate of year-on-year decline. Hotels serving Heathrow and
Gatwick airports have also suffered as a result of slowing international
passenger traffic. At Heathrow, the annual occupancy of 76 percent
was six percent below last year, whilst at Gatwick, the fall in occupancy
was limited to three percent".
London hoteliers continued to experience tough trading conditions, although - as forecast by Andersen in September - the rate of decline has continued to slow in December. "We are hopeful the worst is behind us", continued van Marken. The month of December saw London hotels report a 21 percent decline in revPAR, with the top-end of the market continuing to be the sector most impacted. Further analysis suggests that some London hotels are engaging in tactical pricing to induce demand, particularly in the leisure segment. Outside London, the regions ended the year in positive territory. The year 2001 ended with revPAR up two percent in Scotland, one percent in regional England (excluding London) and an impressive 16 percent in Wales. Welsh performance reflects the very strong trading conditions in Cardiff this year coming off a low caused by new supply. The National Stadium in particular has been a major boon to Cardiff hoteliers. Indeed in December, Welsh revPAR is reported up 8.6 percent as a result of an increase in both average room rate and occupancy. And in Scotland, overall revPAR results in December were up 8.5 percent, in this case almost entirely due to increased demand. Marvin Rust, Partner, Hospitality and Leisure, comments that, "For many, eyes will remain focused on London. Until demand picks up in the capital, and the fear of a price war abates, investors will be concerned about the loss of value from their hotels. But hotel guests will enjoy better value for money than for some time!" Launched in 1996 as the definitive source of hotel performance data outside North America, the Andersen Hotel Industry Benchmark Survey comprises information gathered from more than 5,500 hotels in 300 markets across 140 countries. The survey currently tracks hotel performance everywhere outside the North America. Regional surveys are produced for Asia Pacific, the Caribbean and Latin America, Europe and the Middle East and Africa. These are supported by in-depth country/city reports for Australia, Germany, Italy, New Zealand, South Africa, the UK and London. Further surveys are underway for Benelux, Japan, Scandinavia and Spain. Andersen is a global leader in professional services. It provides integrated solutions that draw on diverse and deep competencies in consulting, assurance, tax, corporate finance, and in some countries, legal services. Andersen employs 85,000 people in 84 countries. |
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Nick van Marken 44 20 7438 5336 [email protected] Julia Felton 44 20 7304 1785 [email protected] |
Also See | London Hotel Occupancy Falls 22.5% in October Compared to 2000, RevPAR Drops 32.6% / Arthur Andersen / Nov 2001 |
Hotel Health Check: Is London Really Sick? / Andersen / Aug 2001 |