Deloitte Sees Signs Of European Hotel Recovery

Analysis released this week by Deloitte showed signs of recovery in the European hotel market, particularly London.

Deloitte pointed to year-over-year demand growth in both December and January, during which demand grew by 4.2 percent and 3.3 percent, respectively. Deloitte global managing partner of tourism, hospitality and leisure Alex Kyriakidis said overall European demand should continue to grow this year, though a few select cities might see declines.

"This will give hoteliers an opportunity to grow occupancy and then average room rates and revenue per available room," according to Kyriakidis. "However, it will be difficult to surpass pre-recessionary levels this year."

While Deloitte does not predict a strong rebound in European hotel performance, London hotels have increased rates year over year since November and could see double-digit RevPAR growth this year, Kyriakidis said. Though business travel to London has fallen by 20 percent, a boost in leisure travel has kept hotels afloat, he said.