Hotels in London experienced a 17 per cent increase in their profitability
in May, compared with the same month in 2010, new figures have revealed. The latest HotStats survey of the UK hotel chains market carried out by TRI Hospitality Consulting cited major events in the capital as helping to boost the sector.
The RHS Chelsea Flower Show, a state visit by US president Barack Obama and the Champions League Final at Wembley allowed hoteliers to increase the average room rate from 99.01 GBP last year to 112.93 GBP in 2011, the research revealed.
Managing director of TRI Hospitality Consulting Jonathan Langston commented: "The economy of London and strength of the local hotel market appears undeterred by happenings not only in the rest of the UK, but across Europe and the rest of the world." Investors may be keen to look into the potential returns available from the capital's hospitality sector.
According to the report, London hotels saw their gross operating profit per available room grow by 16.9 per cent year-on-year, while profitability in the industry was further boosted by cuts to payroll levels. Meanwhile, secondary revenue streams - such as from food and drink sales and meeting room hire - also rose.
These findings are backed up by those of PKF Hotel Consultancy Services, which published data earlier this week showing that room yield for hotels
in London had experienced double-digit growth in May for the second consecutive month. Robert Barnard, partner at the firm, described the figures as "the most positive set of results so far this year".
He went on to point out that performance had improved across every category of hotel, from budget accommodation to high-end establishments, which "demonstrates the resilience of London as a hotel destination". However, Mr Barnard stressed that "significant challenges remain" for the industry and urged hoteliers to do all they can to foster growth in the sector.
- Monday 27 June 2011