UK hotel growth outstrips Europe
UK hotels have outstripped the performance of European counterparts by well over two to one, a study has revealed.
Figures show hotels in the UK recorded a revenue per available room (RevPAR) growth of 5.5% in 2005 against 2.2% for the rest of Europe.
But Scandinavia topped the charts, according to data compiled by KPMG and online market research company The Bench.
It shows the region achieved growth of 6.7% with Danish capital Copenhagen motoring ahead with a 20% RevPAR increase to £47 followed by Oslo which climbed 17% to £48.
In the UK, Aberdeen was the biggest winner with growth rate of 16%.
The Bench managing director Jamie Chappell said Scandinavia has benefited from a burgeoning low cost airline network and a strong conference year.
“The rest of Europe remained fairly stagnant which reflects the general state of the French and German economies although Germany will be looking forward to demand finally matching supply during the World Cup,” he said.
London performed well despite the July bombings and remained top of the European performance rankings with a RevPAR of £98.80 followed by Paris with £94.20 and Edinburgh at £71.30.
Other UK destinations, including Gatwick, Aberdeen and Liverpool, grew at twice the rate of the capital.
The UK also led the occupancy tables with nine cities in the top ten. Only Amsterdam, which was fourth, interrupted the UK’s dominance.
Oslo, again, saw the largest increase in occupancy, up 11.5% to 68%.
KPMG hotel adviser Philip Camble said 70% occupancy should be the aim for city centre hotels. He added weekend business was critical for hitting the target.
“Weekend occupancy is crucial to the business model and remains a key part of marketing and sales strategies for the industry as a whole,” he said.
Report by Steve Jones
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