Hotels in provinces suffer in profitability levels, says TRI

25th November 2010, 8:13am

Hotels in the Provinces have suffered the biggest drop in year-on-year profitability levels since January 2010, according to the latest HotStats survey from TRI Hospitality Consulting.

Despite a 1.6% increase in revenue per available room (RevPAR) to £51.60 from £50.77, the TRI survey revealed that gross operating profit per available room (GOPPAR) actually fell back by 4.1% for provincial hoteliers during October to £32.89 from £34.31.

This is the greatest margin of decline since the 18.9% drop at the beginning of the year.

However, visitors to the Ryder Cup helped to boost profitability for hotels throughout Wales and South West England. Profitability levels increased by 13.3%.

Leading Cardiff hoteliers commented: "2010 has, in general, been a tough year and remains challenging with fewer major events in the city than normal and little or no large city conferences; and new supply continues to materialize.

"The Ryder Cup gave the city an excellent boost in demand levels and above average room rates, but the outlook for 2011 is gloomy, business confidence remains low and the additional impact of any public sector cuts will be felt next year."

Meanwhile hoteliers in the capital have succeeded significantly. David Bailey, deputy managing director, TRI Hospitality Consulting, said: "Following the levels achieved during this month in 2009, it did not seem conceivable in the current environment that room occupancy in London could grow any further, yet the return of the business visitor has allowed hoteliers in the city to boost midweek volume.

"And while leisure demand remains strong, we recognise that months such as this, when occupancy reaches 87.8 per cent, represent a high watermark for room occupancy levels in the capital."

Related Articles:

• 24 Aug 2011 - London hoteliers achieve room occupancy of 92.4% in July
• 27 Jan 2011 - TRI Hospitality Consulting reports profit growth in London
• 27 Jul 2010 - Profitability at London hotels is soaring, says TRI
• 29 Apr 2010 - London hotels show double digit rise
• 04 Feb 2010 - Confidence amongst hoteliers suffer a slight setback, says TRI
• 28 Oct 2009 - London hoteliers boost profits
• 26 Aug 2009 - London Hotel occupancy exceeds 2008 levels

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