Business tourism from visitors to London’s conference centres and corporate venues has helped fuel a 19% increase in profitability for London’s hotels sector in September, reports meeting industry site MeetPie.
MeetPie report that a survey from TRI Hospitality Consulting has shown that there was a significant 11.8% rise in corporate and conference demand in London in September, rising from 25.2% in August to 37%. This increased demand helped drive average rooms in the corporate hotels sector by 7.7% and a corresponding 10.7% increase in rates for hotel rooms dedicated to serving conference centres.
This placed the average monthly rate for the conference sector at £152.54, 4.3% above the previous year to date figure of £146.04
“What a difference a year makes,” said Jonathan Langston, managing director of TRI Hospitality Consulting.
“In September 2009 London hoteliers were nursing declines in both volume and price and the outlook heading in to the winter was bleak. But with a 19% increase in GOPPAR [Gross Operating Profit per Available Room], London Hoteliers have regained any losses suffered during the same period last year and once again surpassed the monthly performance of 2008.”
GOPPAR in the capital grew 20.2% in the third quarter of 2010, following previous increases of 8.7% in Q2 and 16.5% in Q1.
The survey also showed the impact of corporate and conference demand on ancillary spend as well as room revenue, with the level of Total Revenue per Available Room (TrevPar) growing an additional £40 between August and September.