London hotels enjoy strong double digit boost to profitability during December

28th January 2010, 7:40am

London hotels enjoyed a strong double digit boost to profitability during December as trading recovered, according to the latest HotStats survey from TRI Hospitality Consulting.

December 2009 was a positive month for the London hotel market as Revenue per Available Room (RevPAR) grew by 10.1%. A 5.9 percentage point increase in London room occupancy levels, to 77.3%, and a 1.7% increase in average room rates, to £112.41, not only boosted the London RevPAR levels for December well beyond those achieved in 2008, but also outperformed the same period in 2007.

The strong hotel performance mirrored the news from the British Retail Consortium that retail sales in London in December were 12% higher on a like-for-like basis than the same period in 2008, with the weak pound and higher levels of discounting attracting visitors from Western Europe, China and the Middle East.

"The strength of the last few months means that in the year as a whole, London hotels suffered a profit fall of just 7.8%. And this was during what is widely seen as the worst recession since the 1930s," said Jonathan Langston, managing director, TRI Hospitality Consulting.

Langston added: "London hoteliers appear to have got the proposition absolutely right with the massive declines in profitability experienced in January 2009 now a distant memory. Anticipated revenue growth in 2010 and a continued watchful eye on costs bode well for the capital's hotels."

Related Articles:

• 02 Nov 2009 - London hoteliers lead the way
• 28 Oct 2009 - London hoteliers boost profits
• 26 Aug 2009 - London Hotel occupancy exceeds 2008 levels
• 24 Aug 2009 - TRI partners with Visit London
• 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

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