London hotels achieved double-digit growth in profits in 2004 to reverse three years of decline, according to the latest figures from TRI Hospitality Consulting.
Its survey of 510 chain hotels found that total profit per available room in the capital soared by 13.9% last year to average £17,646. Provincial hotels increased profit per available room by 3.2% to average £11,951.
“These figures clearly show that a strong recovery in the hotel industry began last year,” said Jonathan Langston, managing director at TRI. "Hoteliers are not just doing more business, they are making more money in the process.
“The provincial recovery is more modest but the downturn had much less of an impact outside London.”
Hotels in London increased revenue per available room (revpar) by 12.6% to £71.24, thanks to a 7.3% rise in room rate to £88.07 and a 3.8 percentage-point increase in occupancy to 80.9%.
Revpar rose by 4% to £45.09 in the provinces, where hotels lifted room rates by 2.5% to £63.72 and occupancy by 1 percentage point to 70.80%.
While the 2004 results might be flattered by comparison with the weak performance of 2003, TRI remains confident that 2005 will bring significant further growth. It has upwardly revised its revpar forecasts for the year to 9% growth in London and 5% in the provinces.
by Angela Frewin
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