Market Reports

UK Chain Hotels Market Review November 2010

- One year on and profitability levels in London are still rising

12 months after London hoteliers recorded a dra- matic  return to profitability growth  the capital continues  to thrive, according  to the latest  Hot- Stats survey from TRI Hospitality Consulting.


Following the massive  decline  in profitability levels experienced by hotels in London  following  the banking  crisis  in October 2008,  November 2009 was the first  month in  which London hoteliers were able to increase  profitability levels. At 7.5%, the margin  of  growth in  November 2009  was a dramatic turning point from the declines experienced during the rest of the year and marked  the beginning of a strong period of trading for London hoteliers.

Room (GOPPAR)  increased by a further 10.7% to £85.38, boosting  the calendar year average to £68, a figure  which is 14.7%  higher  than the year-to- date average  of  2009.  Meanwhile,  Total  Revenue per Available  Room (TrevPAR) grew  by 8.4%  to £168.20 from £155.14 in 2009.

November  is typically a strong corporate  month in the capital,  illustrated  by the above average achieved room rate, at £138.10  against a year-to- date average of £123.95.

“The draw of London as a world-class destination for  business  and leisure  visitors  as well  as major events  is undeniable. Undeterred  by strikes on the Underground, student fees protests  and the heavi- est November snowfall in 17  years,  hoteliers  in London  have once again  recorded significant  in- creases in profitability;  and long  may it continue,” said  David  Bailey,  deputy managing  director,  TRI Hospitality Consulting.

In  addition, major  events  in the capital fuelled  significant  increases in  achieved room rates in  the non-discounted rack rate (+21.6%) and leisure (+19.4%) sectors, due in part  to the World Travel Market exhibition  at ExCeL,  which attracted ap- proximately 27,000 visitors over a four-day period and the success of  the ATP  World  Tour tennis finals at the O2 which  boasted an attendance  of more than 250,000  people  over an eight  day period.


Click here ( Adobe Acrobat PDF file) to download the complete article including graphs.

TRI Hospitality Consulting provides a wide range of services to clients in the hotel sector. It has offices in London, Dubai and Madrid.


For more information contact:

Jonathan Langston, managing director 020 7892 2201

jonathan.langston@trihc.com

David Bailey, deputy managing director 020 7892 2202

david.bailey@trihc.com

Charles Scudamore, director 0207 892 2211

charles.scudamore@trihc.com


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