UK hotels continue to rise in room rates

10th June 2008, 12:58pm

UK chain hotels have experienced an overall rise in room sales and profit during the four months to April, according to the latest figures by TRI Hospitality Consulting.

Daily income before fixed charges (IBFC) was up 3.3% to £37.43 per available room. Meanwhile Occupancy and average room rates also saw a significant rise.

IBFC also rose by 7.6% to £57.07 per available room in London hotels. Average occupancy increased by 0.9 percentage points to 78.5%, therefore fuelling the growth of 5.9% to £113.27.

Jonathan Langston, managing director of TRI, commented on these findings: "From hotelier's point of view the first sign of an economic slowdown is a drop in occupancy and there is clearly no such sign in the London hotel market. While demand continues to rise London's hoteliers will keep pushing up rates, resulting in growth in room sales and profit."

And in the provinces, daily IBFC fell by 0.7% to £27.17 per available room. With no change in average occupancy at 67%, rate growth at 2% did not match consumer price inflation, which increased from 2.5% in March to 3% in April.

Average room rate also increased by 2% to £72.63, during the four months to April.

Weblink:

www.trihospitality.com

Related Articles:

• 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%
• 28 Apr 2009 - Lower hotel room rates keep occupancy high
• 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

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