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Hotels in the UK Post Strong August Results

News August was a positive month for both provincial and London hotels, and the Olympics are, without a doubt, one of the main reasons for that. According to the latest data published by TRI Hospitality, GOPPAR of hotels in London added 90.1% comparing to the same period of 2011, and the same indicator of provincial hotels added 2.3%.

Average room rate also grew and added 40.6%, increasing from £106.87 to £150.28. This caused the growth of RevPAR of 41% and, consequently, the growth of TRevPAR of 39.8%. Of course, the Olympics were the major reason for boost of the London hotel market after quite weak June and July. The growth of RevPAR and GOPPAR in August was so big that it has become the highest growth rate ever recorded by TRI. London hoteliers benefited from not only guestrooms, but also from food and beverage revenue (up 15.1% and 19.8% respectively). The increase of revenue from hiring conference and banquet facilities is even more impressive – up 173.7%. Of course, the performance of hotels in London in August was exceptional, but now the most interesting question is whether this progress will have influence on the rest of the year.

Provincial activity was also positive in August. The occupancy added 0.5% and the average daily rate added 2.3%. This growth helped to make RevPAR grow by 2.9%. Of course, the cities that were involved in the Olympics as a base or a host city for particular events posted the best stats. For instance, hotels in Cardiff, Wales, posted the growth of GOPPAR of 81.3% to £28.65. This is the highest increase of profit in August in the UK after London. Birmingham accommodations also benefited from the fact that the city was used as a training base. The growth of RevPAR in August estimated 13.8%, and GOPPAR added 30.5%. Finally, hotels in Manchester also experienced the growth of GOPPAR and TRevPAR of 35.6% and 8.1% respectively.

However, there are still many large cities that have to face a very challenging situation. Such cities as Glasgow and Edinburg posted decreases in revenues.


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