According to figures released by TRI Hospitality Consulting, efficient cost-cutting strategies and an increase in revenue saw Gross Operating Profit per Available Room (GOPPAR) rise by 23 per cent in December.
The month also saw a 10.1 per cent rise in RevPAR, a 5.9 per cent increase in occupancy to 77.3 per cent, and a 1.7 per cent increase in room rates to £112.41. December’s strong results meant RevPAR at London hotels for 2009 dropped by just 6.4 per cent.
Jonathan Langston, managing director at TRI Hospitality Consulting, said: “London hoteliers appear to have got the proposition absolutely right with the massive declines in profitability experienced in January 2009 now a distant memory. Anticipated revenue growth in 2010 and a continued watchful eye on costs bode well for the capital’s hotels.”
Worse results for regional hotels
Hotels in the regions fared far worse than their peers in the capital, with overall RevPAR for the year down by 10.8 per cent, despite a 1.9 per cent increase in occupancy during December and a 3.2 per cent increase for the first time in 2009 in GOPPAR.
The figures also suggested that hotels in commercially driven destinations saw a major decline in GOPPAR, such as Sheffield (22.7 per cent), Manchester (28.7 per cent) and Liverpool (26.4 per cent). Those in leisure driven destinations however saw a year-end increase in GOPPAR, with Brighton, York and Blackpool seeing a 0.5 per cent, 0.9 per cent and 6.4 per cent increase respectively.