UK Chain Hotels Market Review | October 2006 | TRI Hospitality Consulting
Room rates in London increased by 10.5 per cent during the month of October, according to the latest figures from TRI Hospitality Consulting’s HotStats survey. This led to a 14.6 per cent rise in room revenue per available room as the capital’s hoteliers continue to enjoy the strong trade experienced during the year so far.
The rate hike in London took it well beyond the £100 barrier, reaching £109.93 compared to £99.48 in the same month a year ago. “It’s been a bumper year for London hotels with even the security scare during August failing to halt the rise,” said Jonathan Langston, managing director of TRI Hospitality Consulting.
October was also a good month outside of the capital with an above inflation room revpar increase of 5.2 per cent. This was almost entirely due to the increase in average room rate, which was up 4.1 per cent to £71.99. Occupancy, by contrast, was up just 0.8 percentage point to reach 76.4 per cent. In London the occupancy increase was more pronounced, up 3.0 points to hit 83.7 per cent, but the bulk of the room revpar rise was still caused by rising room rates.
Looking at the year so far, the first 10 months of 2006 showed a 13.5 per cent increase in room revpar in London to £83.52. But occupancy was the more important contributor, with a 4.8 point increase to 83.2 per cent. Room rate was up 6.9 per cent to just break through the £100 mark to hit £100.37.
The provinces showed almost static occupancy growth, up just 0.2 points to 72.2 per cent and rate up 3.4 per cent to £69.99, leading to a revpar rise of 3.7 per cent to £50.50. “There has been an element of catch-up in London over the summer months with regard to occupancy as the decline due to the bombings in July 2005 worked through. Now, however, rate is the principal driver of revpar rises both in the capital and in the provinces,” said Langston.