In this report we look forward to 2012 and ask which European cities’ hotel sectors are best placed to take advantage of the changing economic order. Are these the cities of the so called ‘old’ Europe or the cities of the fast growing ‘emerging’ economies such as Istanbul and Moscow? What will be driving the growth? What obstacles do they face? Will the glut of new hotel rooms built in the boom years prove difficult to digest?

In this edition we provide in depth analysis of UK hotel performance for the rest of 2011 and 2012, giving our updated view on the realistic impact of the Olympics for hoteliers and what the spectre of the economic outlook will mean for the UK hotel industry.

Balanced growth in occupancy and ADR will result in a 7.6 percent increase in RevPAR in 2011, followed by a 7.0 percent increase in 2012. Activity in the lodging sector has recovered to a similar footing as broader travel and tourism, though a pricing gap is evident. Hospitality business leaders will monitor how pricing unfolds, recognizing that the pace of recovery can change quickly.