London hotels' average room rate next year should grow by
5.1 percent to nearly £130 thanks to business and international travel demand,
according to a report released this week by PwC U.K.
The firm projects London hotel rates this year will increase
7 percent from 2009 levels. Occupancy next year will increase by 4.1 percent,
reaching 85 percent.
"London's hotel scene continues to bask in the glory of
its recovery and, apart from April 2010, which was impacted by an early Easter,
has now seen 11 consecutive months of occupancy growth,"
PricewaterhouseCoopers U.K. hospitality and leisure leader Robert Milburn said
in a statement. "Much will depend on the wider economy, confidence and
continued favorable exchange rates, but we expect London to maintain this pace."
Milburn also said that such luxury properties as the iconic
Savoy have noted the return of the high-end corporate traveler.
Outside of London, however, the recovery is more sluggish.
The firm projects rates to decline by 1.6 percent in the provinces this year,
turning around to a 2.5 percent increase next year.