Dear Santa,  What a year that was! It seems a little churlish to write to you with anything other than thanks and offers to help others after the year of perfect marketing we have just enjoyed in London. 
 
London and the UK have been in the global shop window for much of the year and what a fantastic celebration we had! The weather failed to dampen the Diamond Jubilee celebrations, but that was just a taster for the main course, the London 2012 Olympic and Paralympic Games, what a huge success on and off the track! Average rate was up almost 50% across London in August, not even Lord Coe or Boris Johnson would have expected that! The impact of this marketing was immediate with central London hotels enjoying increased enquiries and bookings of leisure guests wanting to be part of the celebration. Long may it continue! 
 
Overall RevPAR will be up slightly year on year, which we projected this time last year; however, as no-one expected such rate growth over the period of the Games, looking at the full year, excluding August, I suspect performance will be marginally down on expectations. Before we become too pessimistic, occupancy for the full year will again be above 80% for the capital, and is forecast to be similar next year. 
 
It is not only hotel guests that have been flocking to London. There have also been some interesting acquisitions. Development opportunities at Admiralty Arch, Leicester Square, Bankside and InterContinental Westminster have all transacted. It is very exciting to see such high profile properties transacting, and that hoteliers are prepared to purchase sites for future openings. 
 
In recent weeks, we have seen the first very tentative steps back into the debt market of some more UK banks. Nothing dramatic, but more have funds to lend next year than in 2012. That must be a good sign. 
 
Governments across Europe, including the UK are warning of continuing austerity and tough times for years to come, so I doubt we will see any dramatic growth or recovery. A slow and steady growth would be very acceptable to many. Unfortunately hoteliers have seen costs rise, particularly in the past six months, often wiping out any growth in revenue. 
 
Thank you for granting my wish from last year for increased bank debt, it will be much appreciated and protect investments and jobs in the industry. There is some significant loan refinancing expected next year, so please could we ask once again for your influence in encouraging financiers to release debt funding. I also requested an improvement in confidence, both from investors and guests looking to book rooms. Again, thank you for granting my wish (to a degree), but again, more of the same for 2013 would be much appreciated. 
 
All that remains is to wish you and the whole hotel industry and very happy, peaceful and successful Christmas on behalf of all at HVS. 
 
Tim

www.hvs.com