London hotel profits soar in June

Data from TRI Hospitality Consulting revealed an increase of 15.8 per cent in revPAR to £114.95 at hotels in the capital in the month, driven by an 11.2 per cent jump in achieved average room rate to £131.23.

Room occupancy, driven by events such as Wimbledon and the half a million tennis fans it attracts in June, was up 3.4 percentage points at 87.5 per cent.

These factors and a slight decrease in payroll led to a 14.9 per cent increase in profitability, this resulted in a gross operating profit per available room (goppar) of £80.07.

The results echo a report from PKF Hotel Consultancy Services claiming London hotels were now ‘firmly’ in recovery mode​. 

Forward momentum halted in the Provinces​
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​A growth in revPAR of 1.3 per cent to £52.39 in the month of June was not enough to prevent a return to year-on-year profitability decline for provincial hoteliers with goppar slipping 3.5 per cent to £34.19.