London hotel revPAR on rise - TRI

Occupancy and rates also increase 

The total revenue per available rooms (TrevPAR) in London rose in September according to the latest HotStats survey by TRI hospitality Consulting.

The analysts said gross operating profit per available room in the UK capital was 43% higher in September than in August.

TRI said gross profit per available room has now increased by £54.85 so far this year.

Occupancy on London hotels rose to 83.4%, 1.3% higher than in September 2008.

Jonathan Langston, TRI's managing director, said: "The strong volume achieved in the capital, continuing cost control and softer comparables in 2008 have combined to stem declines in profitability."

He said that occupancy in September 2008 dropped after the collapse of Lehman Brothers and the subsequent banking crisis.

But "business travellers are now returning".

This had helped average room rates in London rise by 13% in September compared with August, largely a leisure visitors' month.

But average rates are still 4.8% below September 2008 levels.

TRI said UK regional hoteliers were still relying on "heavy" discounting to drive up occupancy.

It said the average room rate of £70.50 for September was 8.8% lower than last year.

Provincial hoteliers continue to rely on heavy discounting in order to drive volume.

"Strengthening occupancy levels in the provinces and strong volume in the capital are a sign of increased UK and Eurozone consumer confidence and a pick up in business demand after the summer holiday months," Mr Langston said.

www.trihospitality.com