UK Chain Hotels Market Review November 2010
One year on and profitability levels in London are still rising
12 months after London hoteliers recorded a dramatic return to profitability growth the capital continues to thrive, according to the latest Hot-Stats survey from TRI Hospitality Consulting.
Following the massive decline in profitability levels experienced by hotels in London following the banking crisis in October 2008, November 2009 was the first month in which London hoteliers were able to increase profitability levels. At 7.5%, the margin of growth in November 2009 was a dramatic turning point from the declines experienced during the rest of the year and marked the beginning of a strong period of trading for London hoteliers.
This month, Gross Operating Profit per Available Room (GOPPAR) increased by a further 10.7% to £85.38, boosting the calendar year average to £68, a figure which is 14.7% higher than the year-todate average of 2009. Meanwhile, Total Revenue per Available Room (TrevPAR) grew by 8.4% to £168.20 from £155.14 in 2009.
November is typically a strong corporate month in the capital, illustrated by the above average achieved room rate, at £138.10 against a year-todate average of £123.95.
In addition, major events in the capital fuelled significant increases in achieved room rates in the non-discounted rack rate (+21.6%) and leisure (+19.4%) sectors, due in part to the World Travel Market exhibition at ExCeL, which attracted approximately 27,000 visitors over a four-day period and the success of the ATP World Tour tennis finals at the O2 which boasted an attendance of more than 250,000 people over an eight day period.
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.