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Hotels in London Post Good Results While UK Province Suffers

According to the new data presented by TRI Hospitality Consulting hotels in London posted strong results in May 2012, while UK provincial hotels were not so positive and optimistic. London accommodations feature the fifth consecutive month with strong level of profit and this is only the beginning as this summer the city hosts the Olympics. According to London hoteliers May stats were mostly boosted by leisure travellers. The gross operating profit per available room (GOPPAR) added 2.6% to £79.86 (US$123.86). May occupancy was 1.5% higher (84.1% in total) and this is mainly the achievement of the leisure sector, the share of which increased by 3.1% to 21% in total. At the same time the share of business travellers visiting the city fell down as many of them try to avoid visiting the city in the Olympics season. The only business travel segments, which posted growth, are corporate and conference travellers. They added 2.5% and 5.2% respectively. While Olympic Games will surely attract many leisure visitors to London, the consequences for business travel are yet unclear.

At the same time provincial UK hotels fail to maintain their profit levels again. May was no exception – hotels posted a decline in profit of 2.9%. April is traditionally a good month for provincial hotels as it attracts leisure visitors, and May is good for corporate travel. However, this year corporate visitors were not as optimistic as in May 2011. Commercial sector posted a decline of 2.4%, boosted mainly by corporate and residential conference declines. On the contrary, provincial UK hotels reached the growth of RevPAR despite decreasing profit. The growth of revenue of 2.3% (£51.78 or US$80.31) was the result of increased average room rates.

17.07.2012

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