London hotels take Europe lead in profitability
According to a recent report by PricewaterhouseCoopers, hotels in London are set to top the table for growth in the key measure of revenue per available room (RevPAR) in 2015, while the capital, Paris and Edinburgh will see the highest occupancies this year.
The improving economic and travel backdrop has helped rejuvenate trading in almost all the 18 cities analysed. However, the pace of growth varies from city to city, and the challenge for hotels will be to capitalise on the improving climate while responding to the ‘megatrends’ impacting their business.
Business travel is expected to influence hotel trading in Germany, UK and France. Instability in North Africa could also drive more tourism to southern European destinations.
“Some trends, like the mobile and digital revolution, are taking hotels to a whole new world as they battle to stay relevant to consumers. The challenge for hotels is to capitalise on the improved environment as well as the new opportunities a changing world offers”
PwC anticipates growth in 17 of the 18 cities in both 2014 and 2015. Madrid is the exception and is the only city seeing no growth in either year.