Published By : 29 Apr 2016 | Published By : QYRESEARCH
Usually, there are no set standards for defining luxury hotels. The hospitality industry accepts the hotel star ratings implemented by critics to define luxury hotels. In general, four-star and five-star hotels are termed as luxury hotels. Luxury hotels are rated in terms of various features such as ease in booking, availability of rooms, amenities in rooms, food, guest activities, and complimentary touches. The objective of rating luxury hotels is to inform travellers about basic facilities that can be expected from the hotels.
Security Concerns and Economic Slowdown in Russia have added to the Woes of Luxury Hotels
Lately, the growing risk of terrorism has emerged as a primary factor affecting the revenue of the leading luxury hotels in London. According to the reports, the priciest hotels in the city were only 65% occupied in the last three months since March. This has been the lowest for the first quarter since the global economic crisis in 2009. The top hotels in London including Savoy and Lanesborough cost round 25,000 pounds per night. While security concerns have led decreased demand for cheaper accommodation as well, luxury hotels are the most badly affected due to corporate clients and wealthy travellers being sensitive to political and security turmoil. The recent terrorist attacks in Paris and Brussels, the risks of the U.K. leaving the European Union, and the economic slowdown in Russia are the major factors playing spoilsport in the growth of the luxury hotels market in the U.K.
Further, there has been an excess of supply in the luxury segment in the hotel market. A newly built InterContinental Hotel and the refurbished Lanesborough hotel have added over 540 rooms in the last one year. Uncertainty in the political scenario has led business travellers to postpone their investments.