London hotels are set for a tough time as the economic downturn continues, a new report warns.
A study by PricewaterhouseCoopers (PwC), predicts that revenue per an available room (Revpar) is set to fall by 12 per cent in 2009, news which might interest hotel insurance customers.
It also predicts that occupancy in the capital will fall to 70 per cent next year, the biggest decline since 9/11 and excluding that 1991.
Robert Milburn, UK hospitality and leisure leader for PwC, said: "The outlook for travel and hotel demand has deteriorated significantly in recent weeks. But the outlook for 2009 is even more worrying."
Even if hoteliers manage to maintain room rates at 2008 levels next year, this will still represent a fall of four per cent once inflation is taken into account, he added.
Earlier this month, a study by PwC found that the hospitality and leisure sector has seen a 95 per cent increase in insolvencies in just under two years.
