Profitability at London hotels is soaring, says TRI

27th July 2010, 9:41am

Profitability at hotels in the UK capital is booming, according to the latest HotStats survey from TRI Hospitality Consulting.

A year-on-year increase in revenue per available room (RevPAR) of 15.8% in the month of June has led to a 14.9% increase in gross operating profit per available room (GOPPAR) at London hotels.

The strong RevPAR growth in London was led by an increase in achieved average room rate of 11.2%, to £131.23.

The overall rate increase was primarily due to a 22% uplift in achieved rates in the nondiscounted rack rate market segment and the leisure sector. As a result, London hoteliers recorded the highest room occupancy levels of the year in June, at 87.5%, an increase of 3.4 percentage points against 2009.

Jonathan Langston, managing director, TRI Hospitality Consulting, said: "Hotel managers in London have put on a stunning performance in the first six months of the year. Were it not for the major disruptions caused by mother nature in January and April, the capital's hotels may have ended the first six months ahead of the headline performance levels achieved prior to the economic downturn in 2008."

Meanwhile hotels in the provinces have struggled to gain momentum in 2010 and the first half of the year ended with an overall decline in GOPPAR of 2.9%. And the positive rooms revenue movement for provincial hoteliers in June was not enough to drive a year-on-year increase in the first six months of 2010 and RevPAR remained flat at £45.49.

Related Articles:

• 24 Aug 2011 - London hoteliers achieve room occupancy of 92.4% in July
• 25 Feb 2011 - London hotels experience slow down in growth
• 27 Jan 2011 - TRI Hospitality Consulting reports profit growth in London
• 25 Nov 2010 - Hotels in provinces suffer in profitability levels, says TRI
• 29 Apr 2010 - London hotels show double digit rise
• 02 Nov 2009 - London hoteliers lead the way
• 28 Oct 2009 - London hoteliers boost profits
• 01 Oct 2009 - European hotels experience a weak August
• 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

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