London hotel profits soar in June

By Chris Druce

26-Jul-2010 - Last updated on 14-Dec-2010 at 13:28 GMT

London hotels such as the Stafford saw profits rise in June

Profitability at London hotels has soared as room rate surged past its previous peak of two years ago in June, according to the latest HotStats survey

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

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.