London hoteliers recorded a strong performance in June, making it the 19th consecutive month that such businesses in the capital saw profitability rise year-on-year. The HotStats UK Chain Hotels Market Review revealed that gross operating profit per available room and revenue per available room (RevPAR) climbed by 17.6 per cent and 15.1 per cent respectively.
Jonathan Langston, managing director at the company behind the survey TRI Hospitality Consulting, commented: "London hoteliers seem to be infallible at the moment. They have now convincingly shrugged off the recession to hit new heights." In addition to boosting profit and revenue, the industry has also managed to reduce the percentage of its income it spends on payroll, with just 20.4 per cent of the money made being used on this expense in June.
And the picture outside the capital was also a broadly positive one, with provincial hotels recording a 5.3 per cent year-on-year rise in profitability over the same period. Among the cities to perform well were Bristol, Edinburgh and Manchester, which all reported an increase in RevPAR. However, Glasgow, Cambridge and Liverpool were among the metropolises to experience declines in this area.
In a recent report into the state of the UK's leisure industry, Savills noted that it expects to see a "staged recovery" in the sector during 2012. The organisation went on to state that it anticipates hotels will "have the strongest bounceback" next year, with the Olympic Games set to play a key part in driving the industry. And while the international sporting extravaganza may help the figures in 2012, TRI Hospitality Consulting pointed out that a number of major events in the capital - such as Wimbledon, Royal Ascot and Hard Rock Calling - have all played their part in boosting revenue this year.
Overall, Savills asserted that businesses operating in the leisure and hospitality sector have had a "comparatively good recession", adding that consumers have not given up on participating in leisure activities, despite rising costs and lower incomes.
- Tuesday 02 August 2011