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 >>

TagsTrends and Hotels
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