Lower hotel room rates keep occupancy high

28th April 2009, 11:19am

Lower room rates are helping keep London hotel occupancy high, according to the latest European HotStats survey by TRI Hospitality Consulting.

Out of ten major European cities, London occupancy came top with an average of 76% for the first three months of 2009. Paris, Amsterdam, Vienna and Berlin all had higher average room rates than London, but their occupancies were considerably lower, ranging from just 53.1% in Vienna to 68.8% in Paris.

David Bailey, deputy managing director, TRI Hospitality Consulting, explained: "Price promotions and the low value of sterling are stimulating leisure tourism to London which is providing some compensation for the fall in corporate bookings. The overall damage to hotel profits is less pronounced in the English capital than in most other European cities."

In the first quarter of 2009 compared to the same period a year earlier, the sample of four and five star London hotels reported daily hotel profit down by 9.5%.

Elsewhere profits fell more sharply: in Paris by 30.7%; in Amsterdam by 36.6%; and in Vienna by 47.5%.

Related Articles:

• 20 Sep 2010 - London hotels set to smash occupancy levels by 2011
• 04 Feb 2010 - Confidence amongst hoteliers suffer a slight setback, says TRI
• 28 Jan 2010 - London hotels enjoy strong double digit boost to profitability during December
• 05 Jan 2010 - Occupancy and average room rates soar at London hotels
• 02 Nov 2009 - London hoteliers lead the way
• 01 Oct 2009 - European hotels experience a weak August
• 28 Sep 2009 - Holiday makers boost occupancy levels for UK hotels
• 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%
• 27 Apr 2009 - UK hotel managers are more optimistic
• 24 Apr 2009 - UK hotels experience heavy falls in profit
• 30 Mar 2009 - Mixed performance across key city hotel markets
• 25 Mar 2009 - Profit down by 17% at London hotels
• 03 Mar 2009 - Hotel's revenue and profit continues to fall
• 25 Feb 2009 - Hotel profits fall by almost one third
• 28 Jan 2009 - 64% of hotel managers concerned for 2009
• 28 Jan 2009 - Flat profit at London hotels
• 15 Dec 2008 - TRI nominated for 2009 Hotel Report Awards
• 28 Nov 2008 - A snippet of facts found this week
• 27 Nov 2008 - UK hotel profits fall by 9%
• 24 Oct 2008 - London hotels hit by credit crisis
• 10 Jun 2008 - UK hotels continue to rise in room rates
• 04 Mar 2008 - London hotels achieve profit increase
• 27 Feb 2008 - TRI wins Advisor of the Year title

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