Hotels in London recorded the worst performance of 2012 for
the month of June with the Jubilee bank holiday, transport worries and fears of
high accommodation prices all having an impact on business and conference
visitors to the capital.
The latest HotStats survey by TRI Hospitality Consulting showed that profit per
room at London hotels declined by 9.3 per cent in June to £85.87 and
Total Revenue per Available Room (TrevPAR) dropped by 5 per cent to £165.83.
The drop in achieved room rate was only 0.8 per cent, but it was the first time
in 32 months there had been a decline, from £149.34 to £148.18.
The 2.1 percentage point increase in demand from the leisure sector, driven in
part by the first week’s play at Wimbledon,
was not enough to offset the decline in business demand due to the double bank
holiday over the Diamond Jubilee and pre-Olympic travel anxieties.
The residential conference sector was the worst hit with a 0.9 percentage point
decline in demand combined with a 6.7 per cent decline in the achieved sector
rate, from £183.40 to £171.19.
“Although the Jubilee festivities enabled London to look busy in
June, the city was primarily filled with day visitors, with everyone else
choosing to escape to the country or overindulging on street party tea and
scones,” said David Bailey, deputy managing director at TRI.
Hotels around the UK also
suffered from a reduced volume of business due to the extended Jubilee bank
holiday, with hotels in the regions struggling to increase Revenue per
Available Room (RevPAR) in June as they have successfully done in most other