London hotels face worst downturn since 9/11, PWC predicts

Pricewaterhousecoopers forecasts London hotels' revenue per available room to fall by 12% in 2009

London: hotels face worst downturn since 9/11
London: hotels face worst downturn since 9/11

Revenue per available room will fall by almost 12% in London hotels next year, Pricewaterhousecoopers (PWC) forecasts.

London hotels' revenue per available room is anticipated to fall from £94.28 in 2008 to £82.92 in 2009.

Corporate travel budget cuts will drive the decline, as firms hold fewer offsite events and seek cheaper venue options, according to PWC.

PWC UK hospitality and leisure leader Robert Milburn forecasts that London hotel occupancy will fall to 70% next year.

"The capital has not seen a decline on this scale since 9/11 and before that, as far back as 1991 when occupancy fell to 65%," said Milburn. "The continuing turmoil in the markets, economic downturn and negative corporate sentiment means that the outlook has deteriorated significantly."

However, the PWC report said the long term London hotels are in "good shape" to survive the economic downturn due to a "boom of unprecedented revenue growth and investment over the past five years".

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