Hotels in London are benefiting from increased demand from business visitors to the capital.
Whilst the Gross Operating Profit per Available Room (GOPPAR) fell by 4.1 per cent for provincial hoteliers in October, in London the GOPPAR rose by 16 per cent.
Hotels in the capital are benefiting from an increase in demand from those within the business sector. In 2009, the demand helped grow the achieved rate by more than 8 per cent to £153.62 from £141.93. There was also growth of around 16 per cent in the rate in the conference sector from £121.98 to £141.93.
The strong demand within the business sector has led London hoteliers to record the second highest room occupancy levels of the year, as businessmen and women look for somewhere to stay when attending business events at conference centres in the capital.
David Bailey, deputy managing director of TRI Hospitality Consulting, told Meetpie: “Following the levels achieved during this month in 2009, it did not seem conceivable in the current environment that room occupancy in London could grow any further, yet the return of the business visitors has allowed hoteliers in the city to boost midweek volume.”
“While leisure demand remains strong, we recognise that months such as this, when occupancy reaches 87.8 per cent, represents a high watermark for room occupancy levels in the capital,” he added.