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Hotels in London Increase Their Profits in April
April was definitely a good month for hotels in London as they reached first increase of gross operating profit in 2013!
Even though there was a sudden small decrease in occupancy of 0.2%, good ADR level (average daily rate) of £135.29 brought RevPAR (revenue per available apartment) down by 0.2% as well, making April profit rise by 1.6%. The growth was mostly reached thanks to the growth of revenues from beverages by 6.3% and the growth of food sales (+3.3%). Comparing to April 2012, TrevPar (total revenue per available apartment) added 0.8%.
Conference segment has also made its contribution to success of hotels in London in April. The growth of this segment estimated 2.3% to £159 in total. On the other hand, the contribution of the segment decreased. If in April 2012 it was 17.9%, on this year’s April the contribution estimated just 16%. The rate of the segment has not changed significantly and fluctuates around £150.
Even though April was a successful month for hotels in London, just one month is not enough to offset the figures of the first quarter of 2013. The beginning of the year was not very optimistic for London accommodations because of the decrease of GOPPAR of 4.9%. The decrease is mostly caused by falling revenues and growing operating costs, so it will be not easy to find a solution for the problem.
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