Revpar boost brings optimistic start to new decade for London hotels
Revenue per available room (revpar) in the capital grew in November 2009 by 7.6% year-on-year to £102.59, according to TRI Hospitality Consulting.
It is the first revpar growth since August 2008. Occupancy rose for the third successive month by 4.7% to 84% and gross operating profit per available room improved by 7.5% to £74.69.
However, hotels in the regions performed less well in November, with revpar falling by 8.3% to £48.73.
TRI's November 2009 figures were based on data from 480 chain hotels, of which 115 were in London.
"November is historically a strong month for branded chain hotels because of the high number of business and conference guests," said Jonathan Langston, TRI managing director.
Meanwhile, the business advisory firm Deloitte, has confirmed that hotels in London saw revpar rise out of the red during the final quarter of 2009, up 5.5% to £110.
Occupancy was the key driver of growth in the capital, up 5.8% to 82.9%. Average room rates, which lag occupancy in recovery, fell 0.2%, to £133.
Deloitte's figures for hotels in the regions mirror the decline reported by TRI Hospitality Consulting, with revpar falling 7.7% to £44 in the final quarter. Both occupancy and average room rates continued to fall, down 1.1% and 6.7% respectively.
"With sterling still weak against a basket of currencies, London seems set to continue on a fast track to recovery," said Marvin Rust, hospitality managing partner at Deloitte.
"What is most worrying about the performance in the regions is that occupancy is still falling, an indication that 2010 will continue to be tough outside the capital.
"Although the first half of 2010 may show signs of recovery in occupancy, it is important to note that this may only be a ‘technical bounce' and the real recovery, at best, is unlikely to be before the second half of this year."
RevPAR slumps by 27.7% at London hotels >>
RevPAR drops by 17.2% in the provinces >>
By Janet Harmer
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