Hotels in London enjoy 2nd running month of profit growth

Hotels in the capital city enjoyed further profit growth in May, with improvements being seen in revenue per available room (RevPAR), occupancy and average room rate.

According to the latest HotStats survey, which are based on a sample of 625 full-service hotels across the UK, London figures were up from May 2012, with RevPar growing by 2.6 per cent to hit £127.20, the average room rate now sitting at £149.51, and room occupancy also rising to 85.1 per cent.

In its report, HotStats suggested that these rises could be linked to a nice profit conversion for businesses, even though food and utility costs are still rising in this tough economic climate.

Regionally, hotels were also performing very well. Occupancy and average room rate were up one per cent to 74.4 per cent and £70.47 respectively, whilst RevPAR saw a 2.4 per cent rise to £52.40. All of this is undoubtedly good news for the hospitality sector across the UK, with increased profits and customer demand creating a wider availability of hospitality jobs. The big success story of the report was Edinburgh, with room profits seeing a dramatic increase of 14.1 per cent.

These statistics are in conjunction with another hotels survey by BDO, which highlighted that even though it recorded a slight decline in room rate for London sites in May, there were still rises of 1.9 per cent and one per cent in occupancy and RevPAR. The BDO report also revealed gains for regional businesses too.

Robert Barnard, a partner at BDO, said: “"It is encouraging to see operators across the country posting year-on-year growth in rooms yield. Hotels in London in particular will be relieved that they are back in the black after several difficult months."

Berkeley Scott is a specialist recruitment agency providing hotel management solutions.

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