UK hotels experience heavy falls in profit

24th April 2009, 9:42am

The UK chain hotel industry experienced heavy falls in profit and revenue during the first quarter of 2009, according to the latest HotStats survey by TRI Hospitality Consulting.

In London, daily profit fell by 15.7% to £45.62 per available room compared to the same three months a year earlier. Room revpar decreased by 10.1% to £77.58 due to a 5.5% drop in average room rate and occupancy down by 3.7 percentage points to 72.9%.

In the provinces, IBFC fell by 19.9% to £21.22 per available room in the first quarter. Room revpar was down by 11.1% to £42.58, the result of a 5.6% drop in average room rate and occupancy down by 3.8 percentage points to 61.4%.

Jonathan Langston, managing director of TRI said: "Despite the expected better performance in March alone caused by comparison with last year's early Easter, 2009 is shaping up to be a particularly challenging year for UK hoteliers."

The UK hotel market is currently experiencing a shift in its business mix away from high-yielding corporate room lets in favour of leisure bookings. One central London hotelier commented that her hotel was now busier at weekends than during the week, a reversal of normal trading.

"Although down year-on-year, relative to the recessions of the early 1980s and 1990s, today's occupancy remains higher," said Langston.

Related Articles:

• 05 Jan 2010 - Occupancy and average room rates soar at London hotels
• 26 Nov 2009 - The London hotel market records second highest occupancy performance in 2009
• 11 Nov 2009 - Confidence amongst UK hotel general managers at a high
• 02 Nov 2009 - London hoteliers lead the way
• 28 Oct 2009 - London hoteliers boost profits
• 01 Oct 2009 - European hotels experience a weak August
• 28 Sep 2009 - Holiday makers boost occupancy levels for UK hotels
• 26 Aug 2009 - London Hotel occupancy exceeds 2008 levels
• 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%
• 28 Apr 2009 - Lower hotel room rates keep occupancy high
• 27 Apr 2009 - UK hotel managers are more optimistic
• 30 Mar 2009 - Mixed performance across key city hotel markets
• 03 Mar 2009 - Hotel's revenue and profit continues to fall
• 25 Feb 2009 - Hotel profits fall by almost one third
• 23 Feb 2009 - TRI Hospitality Consulting wins hotel report award
• 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
• 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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