Room occupancy in London hotels hit a staggering 94.1%, with year-on-year profits growing by 31.3% in July, according to the latest figures.
As reported by Meet Pie, the latest HotStats survey suggests that the record-breaking levels of occupancy is a result of booming tourist numbers. The demand for hotels in capital is such that it is outstripping rival cities in Europe. In fact Paris, which is London’s closest rival, has a 50% lower gross operating profit per available room than London.
Bolstered by the capital’s plethora of high quality event venues, attracting thousands of business visitors to the city, London hotels have achieved the highest priced room rates since November 2007.
“The weight of this record-breaking achievement by London hoteliers cannot be praised enough,” said Jonathan Langston, managing director of TRI Hospitality Consulting, who conducted the survey. “Although volume is necessary to achieve high room occupancy levels, the management of demand to fill the empty bedrooms during shoulder and low periods is also essential.”
Low payroll costs have also been thanked for the incredible business year seen by hotels in the capital. In Paris, payroll costs are over a third of the total revenue of Parisian hotels; in London it’s just 20%. The difference in profit conversion between the two cities has now reached over 20%.