Flat profit at London hotels

28th January 2009, 11:55am

London chain hotels reported a minimal decline in profitability in 2008, according to the full-year HotStats survey from TRI Hospitality Consulting.

Over 100 full-service branded London hotels reported that income before fixed charges (IBFC) – also known as gross operating profit – dipped by 0.2% from a daily figure of £63.79 per available room in 2007 to £63.69 in 2008.

Total revenue and profit were up by 4 and 3% respectively in the nine months to September.

Meanwhile, in the fourth quarter of 2008, total revenue in London declined by 6% contributing to a 9% fall in profit as the banking crisis and economic slowdown hit hotel demand. Looking at the month of December alone London profit fell by 10.8%.

David Bailey, deputy managing director of TRI, commented on these findings: "The downturn during the fourth quarter in 2008 is confirmed by our December data and points to the challenges that hoteliers face in the coming months. For some hoteliers however, particularly in London, the weak pound stimulated extra inbound demand over Christmas, which at least took some of the sting out of December trading."

In the provinces, the sample of 400 hotels reported a 7.2% fall in profit for the full year to £32.49 per available room. Total revenue decreased by 2.5% to a daily figure of £99.71 per available room.

Related Articles:

• 01 Oct 2009 - European hotels experience a weak August
• 28 Sep 2009 - Holiday makers boost occupancy levels for UK hotels
• 26 Aug 2009 - London Hotel occupancy exceeds 2008 levels
• 18 Aug 2009 - UK hotel general managers remain positive
• 28 Jul 2009 - Occupancy levels hold up at London hotels
• 25 Jun 2009 - Recession has less impact on UK hotels
• 22 May 2009 - London occupancy stays above 80%
• 28 Apr 2009 - Lower hotel room rates keep occupancy high
• 27 Apr 2009 - UK hotel managers are more optimistic
• 24 Apr 2009 - UK hotels experience heavy falls in profit
• 30 Mar 2009 - Mixed performance across key city hotel markets
• 25 Mar 2009 - Profit down by 17% at London hotels
• 03 Mar 2009 - Hotel's revenue and profit continues to fall

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