Despite a three percentage point decline in room occupancy, profitability levels remained stable forLondon hoteliers in February, according to the latestHotStats survey from TRI Hospitality Consulting.
The 0.4% increase in Gross Operating Profit perAvailable Room (GOPPAR) to £54.30 was drivenby a 7.4% increase in Achieved Average RoomRate (ARR) to £122.60. As a result of the movementin room occupancy and average room rate,Revenue per Available Room (RevPAR) at Londonhotels grew by 3.3% to £91.39.
Whilst the business mix remained broadly similar this month against the same period last year, Londonhoteliers were able to increase achieved averageroom rate levels across all sectors, with thestandout increase made in the conference sector,with a growth of 15.8% to £146.53 from £126.53.Furthermore, in contrast to the same period lastyear, when corporate rates declined by 0.4%, thismonth London hoteliers were able to increase theaverage rate in this sector by 6% to £131.36.
Although the decline in room occupancy levels at London hotels appears to illustrate a drop in thenumber of visitors to the capital, it is more likelythat hoteliers have successfully managed volume inorder to leverage rate and achieve RevPARgrowth. Major events such as London FashionWeek will have helped by continuing to drive demandfor accommodation in the capital. This month (February 2011), the real success for Londonhoteliers has been to maintain profitability levelsagainst the high watermark achieved in February2010, when GOPPAR soared by 12.4% duringthe capital’s resurgence.
TRI Hospitality Consulting provides a wide range of services to clients in the hotel sector. It has offices in London, Dubai and Madrid.