London's hotels grow in profitability

The profitability of London’s hotels has seen a year-on-year increase of 19 per cent, according to the latest figures from HotStats.

As reported by Meetpie, the increase was partly fuelled by a growth in demand from attendees of conferences and corporate events: London business visitors accounted for over a third of the market, at 37 per cent. That’s a massive rise on the previous figures, where business guests made up a quarter of visitors.

“What a difference a year makes,” said Jonathan Langston, managing director from the company behind the survey. “In September 2009 London hoteliers were nursing declines in both volume and price and the outlook heading into the winter was bleak. But with a 19 per cent increase in 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.”

According to Air & Business Travel News, hotels in London have managed to boost room rates by 12.5 per cent on average. That translates to a £15 increase on September 2009’s prices. Robert Barnard, a partner of the company behind this second bit of research, said: “The solid figures we have seen over the past few months are at least a good start point if there are to be further bumps in the road ahead.”