London hotels bounce back after riots
The riots, which hit many parts of London and other major cities, contributed to a three per cent drop in hotel occupancy levels. But last month saw a 10.4 per cent increase in profit per room, according the HotStats survey of approximately 550 full-service hotels across the UK published by TRI Hospitality.
“The increase in headline performance levels this month is further evidence, if it was needed, that hoteliers in the capital have put the memory of the crash in the hotel market in September 2008 firmly behind them,” said Jonathan Langston, managing director of TRI Hospitality.
“The growth in headline performance levels this month has clearly been driven by the commercial sector, echoing the recent European Cities Monitor by Cushman & Wakefield which states that London remains the best European city for business.”
Septembers’ increase has contributed to year-to-date profit growth of 8.4 per cent to £69.15 per room. For the month, the £85.64 profit per room at London hotels was 24 per cent above the year-to-date average and 14 per cent above the pre-recession high achieved in September 2007.
Mixed fortunes in the provinces
The survey went on to reveal mixed fortunes for provincial hotels, despite September being the party political conference season.
Hotels in Birmingham, which held the Conservative Party Conference, were able to achieve a 0.4 per cent increase in profit per room for the month to £46.59 from £46.42 during the same period in 2010.
In Liverpool, hotels failed to feel the benefit of the Labour Party Conference, which typically attracts more than 11,000 delegates, as hoteliers suffered a 16.7 per cent decline in profit per room to £28.51.
Overall, while hotels in the provinces once again achieved a positive RevPAR result (+1.9 per cent), this was negated by rising costs which left profit per room two per cent behind the same period in 2010 at £36.64.
In June, BigHospitality reported that full-year profits were forecast to decline in the provinces as inflation and the VAT rise continued to impact public spending.
