In June, hoteliers in London grew TrevPar by 10.9% year-on-year, bouncing back from revenue and profit declines in the same month last year, according to the latest HotStats survey of approximately 625 full- service hotels across the UK. Pre-Olympic effects, the Queen’s Diamond Jubilee and governmental warnings around transport led to a decline in total revenues per available room (TrevPar) of 5% in June 2012.
RevPar up 12.3%
With occupancy growing back to the level of June 2011 at 88.9% and average room rate (ARR) increasing by 3.9% year-on-year to £163.29, the increase in revenue per available room (RevPar) was 12.3% equalling £15.89. Additional revenue per available room of £3.27 derived from food (+7.5%) and beverage (+9.6%) sales and meeting room rental (+15.0%) led to a total revenue growth of £19.16 per available room. June 2013’s performance boosted the calendar year to date TrevPar up from £147.51 in May to £155.67 in June.
6% increase in profit per room let
Thanks to a rooms departmental operating profit conversion rate of 80.9% on average in London’s full service hotels, hoteliers in this month’s performance review were able to make the most of their rooms revenue growth leading to an increase of 6% in rooms department profit per room let. The major drivers of this profitability boost were lower payroll levels than last year and a decline in travel agent commission paid.
Food & beverage departments in London’s full-service hotels also experienced double digit profit growth: F&B departmental operating profit rose by 18.8% per available room to £15.80 which is 30% above the calendar year’s average.
The combination of June’s surge in total revenue and enhanced profitability in hotels in London secured a third consecutive month of profit growth with GOPPAR rising by 12.5% in June compared to last year and 2% compared to June 2011.
London last 3 months year-on-year change
HotStats London Main KPls
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