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Hotels in the UK Face Declines in Profits

According to the latest research performed by HotStats, hotels in the UK face declines in profits for the second time this year. This time the decline concerns not only accommodations in province, but also London hotels.

In November 2011 provincial UK hotels continued their negative trend and this caused the impact on the profit which dropped by 6%. Declines in occupancy and weak demand from the side of commercial sector make experts see no reason for growth in the nearest future. Hotels in London also showed decline in occupancy of 1.9%. Of course, this doesn’t add much optimism to local hoteliers, but the occupancy in London remains high – 82.6%.

Despite the decline in occupancy, hotels in the capital faced only a small decline in RevPAR – 0.2%. This is the result of growth of room rates – in November room rates grew up by 3.4% in leisure and by 1.4% in corporate segments. London hotel market is known as one of the strongest markets in Europe and worldwide, so experts believe such slight decline will not have much influence in final statistics for 2011. London hotels showed very strong performance in 2010, and this year may follow its trend.

Nowadays average room rate in provincial UK hotels estimates £69.47. Corporate and conference sectors are main contributors into this situation, as the declines here estimate -2.5% and -2.4% respectively.

28.12.2011

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