UK Chain Hotels Market Review - February 2011

Profitability remains stable for London hoteliers despite occupancy declines

Despite a three percentage point decline in room occupancy, profitability levels remained stable for London hoteliers in February, according to the latest HotStats survey from TRI Hospitality Consulting. The 0.4% increase in Gross Operating Profit per Available Room (GOPPAR) to £54.30 was driven by a 7.4% increase in Achieved Average Room Rate (ARR) to £122.60.

Whilst the business mix remained broadly similar this month against the same period last year, London hoteliers were able to increase achieved average room rate levels across all sectors, with the standout increase made in the conference sector, with a growth of 15.8% to £146.53 from £126.53.

Furthermore, in contrast to the same period last year, when corporate rates declined by 0.4%, this month London hoteliers were able to increase the average rate in this sector by 6% to £131.36.

About HotStats

HotStats, a Duetto company, is a global data benchmarking company offering specialized performance analysis and a benchmarking tool that helps analyze financial and operational data from a diverse range of hotels globally. This provides hotel owners, operators, and investors with valuable insights into the financial performance of their properties against their competition – an invaluable resource for weighing options and evaluating investment opportunities. For a quick demo, email us at [email protected] or visit www.hotstats.com.

Markets & Performance Markets & Performance Europe United Kingdom

HotStats provides a unique profit and loss benchmarking service to hoteliers from the UK, Europe and the Middle East, which enables monthly comparison of hotels’ performance against their competitors. It is distinguished by the fact that it provides in excess of 100 performance metric comparisons covering 70 areas of hotel revenue, cost, profit and statistics providing far deeper insight into the hotel operation than any other tool.