One year on and profitability levels in London are still rising
12 months after London hoteliers recorded a dra- matic return to profitability growth the capital continues to thrive, according to the latest Hot- Stats survey from TRI Hospitality Consulting.
Following the massive decline in profitability levels experienced by hotels in London following the banking crisis in October 2008, November 2009 was the first month in which London hoteliers were able to increase profitability levels. At 7.5%, the margin of growth in November 2009 was a dramatic turning point from the declines experienced during the rest of the year and marked the beginning of a strong period of trading for London hoteliers.
Room (GOPPAR) increased by a further 10.7% to £85.38, boosting the calendar year average to £68, a figure which is 14.7% higher than the year-to- date average of 2009. Meanwhile, Total Revenue per Available Room (TrevPAR) grew by 8.4% to £168.20 from £155.14 in 2009.
November is typically a strong corporate month in the capital, illustrated by the above average achieved room rate, at £138.10 against a year-to- date average of £123.95.
“The draw of London as a world-class destination for business and leisure visitors as well as major events is undeniable. Undeterred by strikes on the Underground, student fees protests and the heavi- est November snowfall in 17 years, hoteliers in London have once again recorded significant in- creases in profitability; and long may it continue,” said David Bailey, deputy managing director, TRI Hospitality Consulting.
In addition, major events in the capital fuelled significant increases in achieved room rates in the non-discounted rack rate (+21.6%) and leisure (+19.4%) sectors, due in part to the World Travel Market exhibition at ExCeL, which attracted ap- proximately 27,000 visitors over a four-day period and the success of the ATP World Tour tennis finals at the O2 which boasted an attendance of more than 250,000 people over an eight day period.
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TRI Hospitality Consulting provides a wide range of services to clients in the hotel sector. It has offices in London, Dubai and Madrid.
For more information contact:
Jonathan Langston, managing director 020 7892 2201
jonathan.langston@trihc.com
David Bailey, deputy managing director 020 7892 2202
david.bailey@trihc.com
Charles Scudamore, director 0207 892 2211
charles.scudamore@trihc.com
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