By +Eric Jafari
London hotels are feeling the impact of the end of
the summer's euphoria, according to the latest figures
from HotStats. In November, declines were noted across all headline
performance measures, with profit per room falling by 5.6 per
In the survey of approximately 560 full-service hotels across
the UK, the penultimate month of 2012 was identified as being even
worse than November 2011, which experienced a profit per room fall
of 2.4 per cent. However, the greatest drop in gross operating
profit per available room came in June, at 5.6 per cent, throwing
questions about the true impact of the Olympics and Jubilee on the
hotel sector's summer performance.
Other headline variables have not been able to offset November's
poor performance either. Despite a 1.4 per cent year-on-year
increase in food and beverage revenue to £35.50 per available, a
two per cent total revenue per available room was noted, with a
three per cent decline in room revenue and a 7.1 per cent drop in
meeting room hire revenue per available room.
A 0.1 percentage point increase in the proportion of demand for
residential conference sector units occurred in November, but this
was still weaker than the year previous, with rates declining by
7.9 per cent to £148,660 over the year. Falls were also noted in
the nondiscounted best available rate (-7.2 per cent), leisure
(-2.6 per cent) and groups/tours (-6.7 per cent). This contributed
to the average room rate decrease of 2.7 per cent.
Jonathan Langston, managing director of TRI Hospitality
Consulting, stated: "Not even a three per cent increase in the
number of visitors to WTM (world travel market), to almost 29,000
trade visitors, was enough to save face for hotels in London and
the drop in achieved average room rate for November was the
greatest year-on-year margin of decline in this measure in
"London hotels suffer second worst profit decline of 2012.
Although volume remained strong in the city and hotels in London
are undoubtedly on course to achieve a third consecutive year of
profit growth, it is unlikely that hoteliers will be popping
champagne corks as they look to more challenging times ahead."
17 January 2013
London Hotel Performance