London hotels saw a 1.5 per cent year-on-year rise in occupancy to 85 per cent in October 2009, as the margin of decline in RevPAR decreased to its lowest level since July 2008.
According to the latest HotStats survey by TRI Hospitality Consulting, increasing occupancy levels in the capitals’ hotels coupled with a year-on-year decrease in average room rate of less than 5 per cent, has resulted in a reduced margin of decline in RevPAR of 3.2 per cent for the month.
Furthermore, the year-on-year margin of decline in Gross Operating profit per available room (GOP PAR) fell to 4.5 per cent for October, despite hoteliers struggling to manage payroll costs as effectively as September 2009.
London hotels' performance 'encouraging'
Jonathan Langston, managing director of TRI Hospitality Consulting, said: “Although we are dealing with softer comparables in the fourth quarter of 2008, the continued improvements in headline performance in London are encouraging.”
A decline in UK residents’ overseas holidays (down 15 per cent in the nine months to September 2009), together with the popularity of prime tourism locations such as Bath, Brighton and Plymouth, has resulted in a decreased year-on-year GOP PAR margin decline of 10.5 per cent in October.
Last month, business advisory firm Deloitte reported that a surge in domestic tourism was counter-balancing an eight per cent decline in overseas visitors for the eyar-to-date.