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London drives UK hotel performance
UK chain hotels recorded an overall increase in room sales and profit during the four months to April, according to latest data.
Daily income before fixed charges (IBFC) – also known as gross operating profit – was up by 3.3% to £37.43 per available room, the result of occupancy holding up and a continued upwards push on average room rate.
The good overall performance was largely due to London hotels in the sample of 515 properties nationwide, which saw IBFC growth of 7.6% to £57.07 per available room, according to the latest HotStats survey of UK chain hotels by TRI Hospitality Consulting.
The provinces experienced a “much more challenging†environment, with daily IBFC failing by 0.7% to £27.17 per available room.
TRI managing director Jonathan Langston said: “From the hoteliers’ point of view, the first sign of an economic slowdown is a drop in occupancy and there is clearly no such sign in the London hotel market. While demand continues to rise London’s hoteliers will keep pushing up rates, resulting in growth in room sales and profit,â€
But, turning to other parts of the UK, he added: “Thankfully we have not seen an overall fall in average occupancy, but the stresses and strains that exist in certain regional markets are apparent from the data.
“Unless average occupancy starts to improve, the ability to push rates will remain weak, resulting in negative profit growth.â€
by Phil Davies
Phil Davies
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