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London occupancy stays above 80%

22nd May 2009, 10:02am

Average room occupancy at London chain hotels stayed above 80% in April thanks to strong leisure demand, according to the latest HotStats survey by TRI Hospitality Consulting.

The Easter holidays contributed to high occupancy of 80.4% in the capital.

Jonathan Langston, managing director, TRI Hospitality Consulting, commented on these findings: "Easter is historically a quieter time for branded chain hotels because there are fewer business guests. This year, however, as hoteliers reacted to the downturn in corporate demand, discounted leisure deals kept overall occupancy levels high."

London room occupancy this April compared well to previous Easter months, matching that of March 2008, meanwhile in the provinces, room occupancy was 67.3% this April, which also matched levels reported for the Easter of March 2008.

Looking at the four-month trend this year, the recession appears to be having a greater impact on hotels outside London. Revenue per available room was down by 10.8% in London but minus 13.1% in the provinces.

Daily profit per available room – expressed as income before fixed charges (IBFC) – fell by 23% to £22.06 in the provinces compared to a 17.1% decrease to £46.92 in the capital.

And in the three months to March 2009 the number of overseas visits to the UK fell by 13% to 6.3 million compared to the same period a year earlier, and yet the amount they spent while here edged up slightly to £3.13 billion from £3.128 billion.


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