For the first time in three quarters, year on year movements in Revpar for both London and provincial hotels are better than the previous month, says Tri Hospitality Consulting (THC).

In a cautious statement, the consultancy says “indicators – rather like the proverbial oil tanker – while proving incredibly slow to turn and face in the other direction may now have turned and be pointing towards improving fortunes.”

The upbeat indicators, according to THC, include the diminishing of the SARS epidemic, tourism threats slowly receding, US economic indicators looking more favourable, stock markets rallying and domestic consumer demands remaining strong – although it believes this may decrease as the housing market tops out.

Hoteliers, both in London and provincial hotels, have reported some limited strengthening in demand and forward order books. However, THC warns this does not suggest demand is buoyant, merely that it may now be increasing rather than decreasing.

THC adds that should this short-term improvement become a trend, it will almost certainly come too late to turn 2003 into a growth year. Details: www.trihospitality.com