London hotels experience slow down in growth

25th February 2011, 9:39am

Whilst London hotels showed a Rooms Revenue per Available Room (RevPAR) increase of 3.3% in January, Gross Operating Profit per Available Room (GOPPAR) remained stable, according to the latest HotStats survey from TRI Hospitality Consulting.

Jonathan Langston, managing director, TRI Hospitality Consulting, commented: "After the strong bounce-back in 2010, it was almost inevitable that London hotels' profit performance would be subdued in what is usually a tough trading month for hotels. It will be interesting to see if this continues throughout the year on the back of an excellent 2010 in London."

Whilst London average room rate increased by 8.8%, occupancy performance for the month decreased by 3.6 percentage points, resulting in a RevPAR increase of 3.3%.

And whilst the London three and four-star hotel market RevPAR performance increased by 2.3% and 1.7% respectively, five-star hotels increased RevPAR performance by 3.7%.

Meanwhile provincial hotels experienced tough trading conditions.

Langston concluded: "In January 2010, the provinces had to deal with adverse weather conditions. This year, an increase in VAT and inflation has resulted in cutbacks in consumer spend," commented Langston.

"With much of the cost saving strategies implemented last year, provincial hoteliers are now reliant on a pick-up in market conditions. It is inappropriate to call a year on the basis of January numbers, and it will be interesting to see how provincial performance evolves in what could be a bumpy 2011."

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
• 24 Aug 2009 - TRI partners with Visit London
• 23 Feb 2009 - TRI Hospitality Consulting wins hotel report award
• 15 Dec 2008 - TRI nominated for 2009 Hotel Report Awards
• 04 Mar 2008 - London hotels achieve profit increase

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