London hotels show double digit rise

29th April 2010, 9:16am

London hotels have experienced a massive 17.6% rise in Gross Operating Profit per Available Room (GOPPAR) in March, according to the latest HotStats survey from TRI Hospitality Consulting.

The provinces showed a more modest fall, of 2.5%, compared to previous months on this same measure.

After turbulent weather over the winter period affected UK provincial performance, there were more stable trading conditions in March. Average room rate increased by 0.8% in March to £87.88. Total Revenues per Available Room (TrevPAR) increased by 2.9% to £106.22.

Jonathan Langston, managing director, TRI Hospitality Consulting, said: "Average room rates are now growing, at least in London, and this has helped secure a healthy rise in RevPAR. Hoteliers have also managed to get to grip with their cost structures, which has transformed GOPPAR performance."

Langston added: "Whilst the level of decline in average room rate performance is reducing it is still difficult to predict whether provincial hotel market performance is reaching its low point, or if there are still tough trading conditions ahead – particularly when considering the election is looming and the knock-on-effect on the economy and to the domestic consumer."

Related Articles:

• 25 Nov 2010 - Hotels in provinces suffer in profitability levels, says TRI
• 27 Jul 2010 - Profitability at London hotels is soaring, says TRI
• 28 Jun 2010 - London hoteliers experience highest room occupancy in May
• 25 May 2010 - UK hotel managers are confident about 2010, says survey
• 28 Oct 2009 - London hoteliers boost profits
• 28 Sep 2009 - Holiday makers boost occupancy levels for UK hotels
• 24 Aug 2009 - TRI partners with Visit London
• 28 Jul 2009 - Occupancy levels hold up at London hotels

Click here to submit a comment!

Have your say!

To comment on this article, simply enter your name and email and send us your views. Please note that your comment will appear publicly below this article once it has been processed. For enquiries please email info@eatoutmagazine.co.uk.