London hotels saw an increase
in revenue and room rates for the month of February 2012, however profits were
impacted by rising costs, according to the latest HotStats survey.
a second consecutive month, growth achieved in Revenue per Available Room
(RevPAR), was as a result of an increase in both room occupancy (+1.1
percentage points) to 75.4 per cent and a 2 per cent increase in room rates to
the report by TRI Hospitality Consulting also found that the 2.5 per cent
year-on-year growth in Total Revenue per Available Room (TrevPAR) achieved by
London hoteliers was negatively impacted by an increase in costs. In the rooms department, direct expenses per
room sold increased by 5 per cent to £13.98, which was primarily a result of
an increase in costs associated with third party travel agents. In the food and
beverage department, beverage costs suffered a year-on-year increase of 0.7
percentage points to 21 per cent of beverage revenue. And energy costs at London hotels went up by a
substantial 0.4 percentage points to 3.4 per cent of total revenue.
is clear from their recent performance levels that there is now a complete
disconnect between the revenue performance of hotels in London
and the rest of the UK.
However, in the same way that London hoteliers have successfully managed
revenue levels throughout the economic downturn, it is now essential that they
manage rising costs, as in the current climate this may be the biggest threat
to continued profitability growth,” said Jonathan Langston,
managing director, TRI Hospitality Consulting.