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Hotels in London are Ahead of the Rest of the UK

London hoteliers can be calm as hotels in the capital of the UK show positive results the second year in a row. Even though the results of the rest of the UK for 2011 are not very encouraging, London hotels show improvements in profitability. These are the results of the latest study by HotStats that have covered 550 accommodations all over the UK.

The increase of RevPAR of 6.1% in 2011 helped hotels in London to reach the increase of profit of 4.7%. Another factor for bigger profits are the greater average room rates in London hotels – nowadays the average room rate here estimates £131.03 (US$203.96) (compare it to the same period of 2010 - £122.45 (US$190.62)). The annual result of London accommodations could be much better, but a large decrease in profit of 9.2% in December 2011 made its impact on the yearly statistics. December 2011 followed the two consecutive month decline in profits. The result of December 2011also became the greatest year-on-year drop starting from August 2009.

The situation with provincial UK accommodations is even less optimistic. Even though in 2011 hotels in the UK province gained the increase of occupancy and growth of RevPAR of 1.5%, the total profit of provincial hoteliers went down and declined by 3.2%.

If we look at the structure of growth in average room rate for the UK hotels except for London accommodations, we will see that only particular segments show improvements. These are group (+ 2.6%), rate (+2.8%), and leisure (+0.2%) segments. At the same time such traditional sources of profit for hoteliers as corporate and conference segments show decreases (-0.3% and -1.3% respectively).

However, experts stay positive about the UK province despite quite a poor performance in 2011. Even though the total stats show decline, hotels in such primary UK locations as Edinburg, Manchester, and Brighton finished year with positive results. It’s clear the provincial hoteliers in the UK face various challenges, but there is a chance for recovery in 2012.

10.02.2012

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