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Hotels in London Feature Negative Growth in June
June was quite an unsuccessful month for hotels in London, while many other European destinations feature growth. All preparations and anxieties associated with Olympics and the growth of accommodation cost made London less attractive for visitors in June. At the same time such countries as Berlin, Amsterdam and Dublin feature a sustainable growth for the month. This information is posted in the latest report by TRI Hospitality Consulting.
In June the level of GOPPAR (gross operating profit per available room) of hotels in London fell by 7.7%. This is the first month starting from December 2011 with such a big decline. The drop is mostly the result of decline in room occupancy of 5.2% to the level of 83.3%. It also made TrevPAR fall by 3.6% to €240.66 (US$294.71).
As weather conditions were fine during June, strong pound is also one more reason for the bigger number of travellers choosing other places to rest. This helped many other European cities. For example, hotels in Berlin were showing very strong performance in June. Here the increase of profit per room estimated €77.02 (US$94.32). GOPPAR grew thanks to the increase of average room rate by 16%, and occupancy was 1.5% up. This helped to increase TrevPAR to the level of €176.34 (US$215.95).
The increase of room rates and revenue in Berlin was reached mainly because of corporate and residential conference segments. Among the largest sources were such large events as EULAR medical event that attracted more than 16,000 participants. In 2011 the event took place in May.
Other European cities with sufficient growth of GOPPAR in June 2012 are Amsterdam (+7.3%), Vienna (+10.3%), Istanbul (+14.3%), and Budapest (+22.6%). Hotels in Dublin feature the largest increase with the growth of profit per room of 26.9%.
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