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Wonderful June for Hotels in London

Without a doubt, June was a good month for hotels in London as they managed to increase their total revenue per available room (TrevPar) by almost 11%, putting to an end June declines. This information is kindly presented by HotStats that has surveyed 625 hotels across the country.

In July 2013, occupancy grew back to the level of June 2011 – 88.9%. With average room rate (ARR) also increasing by 3.9% to £163.29, the increase of revenue per available room (RevPAR) also added 12.3% and estimated £15.89. The increase of revenues from food estimated +7.5%, while revenues from selling beverages added 9.6%. With the growth of meeting room rental by 15%, London hotels managed to get additional revenue of £19.16 per available room. Thanks to that, June performance overcame May results, with Trevpar growing from £147.51 to £155.67.

Hotels in London were also able to reach operating profit conversion rate of 80.9%, therefore, getting the most of their guestrooms in June. Full-serviced hotels in the UK capital have additionally benefited from a decline in agent commission and lower payroll levels. Food & beverage departments are another revenue bringer for hotels in London. In June their results were 30% above the month’s average. In total, June was the third consecutive month of profit growth for hotels in the capital. Comparing to June 2012, gross operating profit per available room (GOPPAR) in June 2013 was 12.5% higher, and 2% higher if compared to June 2011.

08.08.2013

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