London hoteliers record a 4.7% increase in profit per room in 2011 (United Kingdom)
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London hoteliers record a 4.7% increase in profit per room in 2011 (United Kingdom)
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Category: Europe - United Kingdom - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2012-01-26
A difficult end to the year has not stopped hoteliers in
London recording a second consecutive year of profitability growth, according to the latest HotStats survey
of approximately 550 full-service hotels across the UK
by TRI Hospitality Consulting.
The 4.7% increase in profit per room in the capital in
2011 was primarily due to a 6.1% increase in Revenue
per Available Room (RevPAR), which was led by a 7.0%
increase in the achieved average room rate for London
hotels to £131.03 from £122.45 during the same period
in 2010.
“Despite a challenging economic backdrop, London
hotels have again outperformed expectations by showing profit growth in 2011. While the profit growth was
more moderate than in 2010, it shows that hotels can
buck the economic trends,” said Jonathan Langston,
managing director of TRI Hospitality Consulting.
The 13.9% increase in profitability levels achieved in
2010 was always going to be a hard act to follow, but
London hoteliers have managed to exceed expectations, primarily due to a strong period of operation
during the second quarter of the year.
However, the annual increase for hotels in the capital
was tainted by the 9.2% decline in profit per room in
the city in December, which represented the third consecutive month of year-on-year profit decline for London hoteliers in 2011 and was the greatest monthly
year-on-year drop in this measure for hotels in the
capital since August 2009.
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