London hotels saw profits increase for the fifth consecutive month in May, but business visits have seen a slight decline, as travellers are becoming wary of visiting the capital during the Olympic build up, according to the latest HotStats survey.
Visitors to the city are fuelling a consistent year-on-year increase in performance levels, which included a 2.6 per cent increase in gross operating profit per available room (GOPPAR) to £79.86.
However, despite increases in achieved rate in the corporate (+2.5 per cent) and conference (+5.2 per cent) markets, the city’s hoteliers have also seen a four percentage point decline in the proportion of demand attributed to these sectors as business visitors have become more wary about visiting the capital during the Olympics.
In May, room occupancy increased by 1.5 percentage points to 84.1 per cent, and TRI Hospitality Consulting - which compiles the survey - believe leisure demand in the city was boosted by Olympic test events throughout the month, many of which have taken place at the Olympic Park in Stratford.
“Whilst we have yet to see much sun, we are well into the summer of celebration, which London hoteliers have been hoping will drive the demand for hotel accommodation and allow for increases in headline performance levels. So far in 2012, performance records have been consistently smashed, but in the coming months the hotel industry will provide a real barometer of the benefit these events will have on businesses in the capital and beyond,” said Jonathan Langston, managing director at TRI Hospitality Consulting.