London hotels have ‘shrugged off recession’
According to the latest HotStats survey of 550 UK hotels by TRI Hospitality Consulting, London hoteliers saw an increase in gross operating profit per available room (GOPPAR) of 17.6 per cent to £94.12 for the month of June – the highest GOPPAR growth margin in the capital since the start of the recession in September 2010.
RevPAR for the period stood at £132.05, a 15.1 per cent increase on the same period last year, which was driven by a 12.6 per cent rise in average room rate to £147.81.
Jonathan Langston, managing director of TRI Hospitality Consulting, said: "London hoteliers seem to be infallible at the moment. They have now convincingly shrugged off the recession to hit new heights.
"Whilst the ONS has reported another quarter of limited economic growth in the UK, the growth in revenue and profitability at London hotels has been leveraged by the multi-national origin of both business and leisure visitors to the capital.
“Added to which, the packed summer season of events in the city continued with accommodation demand derived from major events including Wimbledon, Hard Rock Calling, Taste of London and Royal Ascot.”
Profitable provinces
Similarly, the provincial hotel market also recorded a 5.3 per cent increase in profitability levels for June – the first time since January 2011.
While overall performance for the provincial hotel sector was strong, with a 5.5 per cent increase in revPAR, some city markets continued to suffer.
“Despite the growth in June, year-to-date profit per room levels remain approximately 1.7 per cent behind the same period in 2010 and whilst we are keen to toast the successes of provincial hotel performance and hope that June is the catalyst for a return to growth, we are all too aware that it is entirely possible that the strong performance this month may just be a blip in the right direction,” added Langston.
