Search
The Caterer

Strong June results for London hotels, boosted by comparison to last year's pre-Olympic slump

24 July 2013 by
Strong June results for London hotels, boosted by comparison to last year's pre-Olympic slump

Hotels in London received a boost in business in June with total revenue per available room (trevpar) increasing 10.9% year-on-year, according to the latest HotStats survey of UK chain hotels.

However, last month's figures were in comparison to the results of June 2012 which suffered from the pre-Olympic business slump, the Queen's Diamond Jubilee and government warnings around transport, resulting in a decline in trevpar of 5%.

The HotStats survey is based on data collected from 624 hotels with an average number of 177 bedrooms.

Occupancy for June 2013 grew back to 88.9%, the level of June 2011, with average room rate (ARR) increasing by 3.9% year-on-year to £163.29 and revpar growing by 12.3% to £145.25.

Full-service hotels also benefitted from a surge in food and beverage revenues with profits in those departments rising by 18.8% per available room to £15.80 which is 30% above the calendar year's average.

The combination of increased revenues and enhanced profitability of London hotels secured a third consecutive month of profit growth with total gross operating profit (goppar) rising by 12.5% in June compared to last year and 2% compared to June 2011.

Meanwhile, goppar in provincial hotels rose by 9.4% in June and 3.6% for the calendar year to date.

Occupancy increased by 1.5 percentage points to 68.6%, while ARR for the first half of the year increased by 1.7% to £69.42 and revpar rose by 3.9% compared to the first half of 2012. Growth in food revenues was up by 2.3% and beverage by 1.3%.

The increase in goppar was achieved despite higher utility and other costs.

Poor start to 2013 for London hotels >>

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.