European Chain Hotels Market Review - July 2011
The staggering room occupancy this month followed a room occupancy of 91.9% during the same period in 2010 and fuels anticipation for hoteliers at the prospect of what the shape of demand may be during the same period in 2012 when it is estimated that 380,000 international visitors will require hotel accommodation in or around the UK capital during the event.
The volume of demand in London also allowed hoteliers to leverage room rate to achieve a 4.5% year-on-year increase to €204.12, contributing to a 4.8% increase in Revenue per Available Room (RevPAR) to €188.07.
Whilst the strength of demand for hotel accommodation in London may be attributed to the timing of Ramadan this year, which has meant that Middle Eastern visitors who typically come to London during the summer in search of a more temperate climate have primarily travelled during July, industry commentators have also suggested that there may a higher volume of Middle Eastern visitors than usual due to political uncertainty in the Arab world as well as demand displaced from Paris due to the banning of the burka in France.
That said, hoteliers in Paris are unlikely to be concerned with the reduction in the number of Middle Eastern visitors to the French capital as they recorded a RevPAR increase of 11.1% in July, on the back of a 9.5% increase in average room rate to €211.13.
In addition to the regular spectacle associated with the arrival of the Tour de France in the capital at this time of year, Hotels in London achieve a stunning room occupancy of 92.1% in July the 9th edition of the Paris Film Festival helped hoteliers to achieve a 14.5% increase in profit per room to €92.23.
“Their status amongst the most popular visitor destinations in the world means hotels in London and Paris are wellpositioned to achieve strong headline performance levels during the summer period. When these periods of trading are positively impacted by events such as the timing of Ramadan it is not unusual for occupancies to be in excess of 85%, but at more than 90% hoteliers in London are setting the bar extremely high for themselves,” said Jonathan Langston, managing director, TRI Hospitality Consulting.
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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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