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Hotels hot despite damp summer
Despite interest rate rises and appalling summer weather, the UK tourism industry has remained resolute, with the hotel market growing rapidly in the first six months of the year. Significantly, a survey from accountant Deloitte has found that revenue per available hotel room jumped 8.3 per cent across the country in the first half year.
London is performing exceptionally well, possessing the highest occupancy of any European city this year, a fact Deloitte partner Marvin Rust attributes to the economic strength of the capital.
‘Continued growth of global financial services and merger and acquisition activity is leading to strong demand for London hotels,’ commented Rust, ‘and with occupancy exceeding 80 per cent, we would expect average room rates in London to grow significantly in the next year, reflecting the “full” status of the city.’
Rust optimistically believes environmental concerns and increased taxation on flying may create greater domestic holidaying, though he cautions that a slowdown in consumer spending may have a knock-on effect on hotels. He says: ‘Risks also remain around the safety and security of visitors and the ease of travel to the UK with higher security levels. And while the outlook for global demand has strengthened, foreign tourists, particularly those from the US, still have to contend with the strong pound.’
Indirectly affected is AIM-listed architect Aukett Fitzroy Robinson, which is proving to be a major beneficiary of increased confidence in the European hotels sector, attracting contract interest from major hotel firms looking to expand in London, Moscow and the Middle East.
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