Profitability grew by 9.5% in London hotels but fell by 1.2% in the provinces during August 2010, according to the latest HotStats report from Tri Hospitality Consulting.
The capital's hotels increased both occupancy and average room rate while reducing payroll costs to achieve a gross operating profit per available room (goppar) of £48.81.
However, this still falls short of 2008 levels, following the 13.4% fall in goppar reported in August 2009.
"Despite the strong performance, August was the first month since the ash cloud-related declines back in April that the London market has not regained the losses experienced in 2009," commented Jonathan Langston , managing director at Tri.
He anticipated a hardening of variables from 2009 as the year progressed.
Although occupancy and room rates edged ahead in the regions compared to August 2009, a rise in the cost of labour reduced hotel profitability to £25.34.
Leisure destinations such as Bath and Brighton fared much better than cities that relied on the commercial sector, such as Manchester and Newcastle.
Bath hotels were able to boost goppar by 6% to £48.92 while those in Newcastle saw profitability slump by 33.2% to £3.30.
Annual HotStats hotel performance data
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|JULY 2010 |
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|MAY 2010 |
|APRIL 2010 |
|MARCH 2010 |
|FEBRUARY 2010 |
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|DECEMBER 2009 |
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