Hotel performance in the capital has surpassed 2008 levels to see a rise of almost 14 per cent in gross operating profit per available room (GOPPAR).
That’s according to the latest full year results from TRI Hospitality Consulting, which monitors the performance of hotels in London. It revealed that average room rate in London grew by 8.9 per cent, and revenue increased by 11.6 per cent.
The news suggests that when it comes to choosing places to host corporate events, London comes out on top. That’s because businesses guests helped drive up the profitability of the capital’s hotels in 2010, and look set to do the same this year.
Profitability of provincial hotels didn’t fare so well, with GOPPAR falling by 1.4 per cent. That’s despite the modest 1.5 per cent increase in room revenues that provincial hotels charged.
“Although the Provincial hotel performance is subdued, it is still creditable given the underlying economic conditions in the last year,” said Jonathan Langston, managing director of TRI Hospitality Consulting. “In contrast, the London performance is astonishing and surpassed 2008 levels, which bodes well for the next 12 months, particularly as the city still has growth associated with the Royal Wedding and Olympic Games to look forward to.”