London hoteliers achieve room occupancy of 92.4% in July

24th August 2011, 12:33pm

With one year to go until London welcomes athletes to the 2012 Olympic Games, hoteliers in the capital have been breaking records of their own this month as room occupancy levels reached a massive 92.4%, according to TRI Hospitality Consulting's latest HotStats survey.

Not only did hoteliers in London achieve a 0.6 percentage point year-on-year increase in room occupancy following the staggering 91.8% achieved during the same period in 2010, but room rates also soared.

At £148.65 the achieved average room rate for the month is the highest recorded. This is 0.6% above the previous high, which was achieved last month. 

Meanwhile hotels in the Provinces are back under pressure this month as year-on-year profitability levels declined by 3.7%.

On a positive note, hotels in the provincial UK were able to achieve an increase in RevPAR for the sixth month of the year. A 0.7 percentage point increase in room occupancy to 77.7%, resulting in levels approximately nine percentage points above the year-to-date average of 69%, in addition to a 0.7% increase in average room rate put RevPAR levels ahead of the same period last year.

Jonathan Langston, managing director of TRI Hospitality Consulting, said: "This is way beyond forecast expectations, but who would have predicted a year-on-year increase on a plus 90% occupancy? But that's what London is all about at the moment. There is a buzz across the capital as millions of people are coming to see what the 2012 Olympic city has to offer."

"Whilst the overall picture for hotels in the Provinces is not encouraging, pockets of positivity still remain. That said, with inflation levels currently at 5% and utility costs widely reported to be set for increases of up to 25%, growth in profitability levels for Provincial hoteliers is going to become even more of a challenge."

Related Articles:

• 25 Feb 2011 - London hotels experience slow down in growth
• 25 Nov 2010 - Hotels in provinces suffer in profitability levels, says TRI
• 27 Jul 2010 - Profitability at London hotels is soaring, says TRI
• 23 Feb 2009 - TRI Hospitality Consulting wins hotel report award
• 09 Feb 2009 - UK hotels face most challenging conditions in 17 years
• 15 Dec 2008 - TRI nominated for 2009 Hotel Report Awards
• 10 Jun 2008 - UK hotels continue to rise in room rates
• 27 Feb 2008 - TRI wins Advisor of the Year title

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