London hoteliers reported in June their 19th month of year-on-year profitability growth, according to a nationwide survey of the United Kingdom by TRI Hospitality Consulting.
Last month in the capital city, hoteliers recorded a growth in GOPPAR of 17.6% to US$154 (£94) from US$131 (£80), which was primarily driven by a 15.1% increase in RevPAR to US$216 (£132). This represented the highest margin of GOPPAR growth in the capital since September 2010.
The streak kicked in after a tough first six months of 2009 when hotels in London suffered a year-on-year decline in profit per room of 14.1%. However, a growth of 12% in the first half of 2010 on top of the year-to-date growth of 10% in 2011 leaves London hoteliers well ahead of pre-recession performance levels.
“London hoteliers seem to be infallible at the moment. They have now convincingly shrugged off the recession to hit new heights,” said Jonathan Langston, managing director of TRI Hospitality Consulting.
Revenue growth was primarily driven by a 12.6% increase in average room rate to US$241 (£147) from US$215 (£131). While pressure remains on price in the commercial sector across the majority of the U.K., hotels in the capital recorded significant levels of growth in both the corporate and conference segments at 11.2% and 25.5%, respectively.
The survey included 550 full-service hotels.