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Hotels in London Show Better Results Than the Rest of the Country

News STR Global and Whitebridge Hospitality have analyzed data starting from 2000 and till our days. According to it, hotels in London have been more profitable than accommodations in the rest of the country over 11 years.

In order to perform the study, the researchers have selected a consistent sample of hotels with the total number of guestrooms exceeding 31,000. Over the last 10 years London hotels keep staying on the same level with inflation, showing the negative growth rate of just 0.2% per year. At the same time regional hotels of the country feature the decline of profit margins by as much as 11.6%.

The occupancy also shows the dominance of London hotels. In 2000 the occupancy estimated 82%, and in 2010 it already reached 85%. During this period the occupancy managed to fell to 75% in 2003. Regional hotels showed the occupancy of around 75% in 2000, and in 2010 the occupancy was already around 65%. The ADR levels are also very different for the capital and the province. In London it estimates around £120, while in the province – only £70.

This analysis shows that London has always been and remains the main destination point of the country.


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