London Upscale Hotels Experienced Surge of Business in May

The upscale market in London has experienced a surge in business in May, pushing average rates and occupancy to the highest levels for 12 months.

The general feeling from many GM´s and revenue managers was that London was on fire, and even though May is traditionally a good time for hotels with lots going on across the capital, this month has been exceptional.

In addition to the usual social season events we have had the test match between England and Sri Lanka, The Chelsea Flower Show and The Ritz´s 100th birthday.

The good news has spilled over to the four star market, fuelled by 6 percent increase in average rate and a 5 percent rise in Occupancy. In fact, strong occupancy growth was evident across the sector, including the three stars and budget sector that increased by 4 percent year to year.

June is also looking strong with a lot of business already on the books and even July and August look positive. Obviously any figures in July will be a huge improvement on last year, but 2006 is already shaping up to be a far better year than last year.