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
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.
