London hotel rates up 2.6 per cent in November but driving profit an issue
London hotels saw a 2.6 per cent increase in average room rate in November 2019, according to the latest data from HotStats.
Rates increased year-on-year in the capital to £186.53 during the month, with occupancy down by 1.5 percentage points to 82.3 per cent.
Across the United Kingdom as a whole, occupancy was 78.5 per cent and average room rate was £123.43 in November.
A spokesperson for HotStats said: “Revenue growth hasn’t been an issue for UK hoteliers this year. It’s driving profit that has them frustrated.
“In a tale that is becoming all too common for the region, RevPAR (revenue per available room) at UK hotels was up in November, but profit against the same time last year was negative. RevPAR grew slightly 0.3 per cent year-on-year, while GOPPAR (gross operating profit per available room) was down 1.8 per cent year-on-year, illustrating the sometimes incongruous relationship between revenue and profit.”
The divergent revenue and profit picture across the UK in November was also seen in Birmingham, where both RevPAR and TRevPAR (total revenue per available room) were up year-on-year, 3.6 per cent and 1.1 per cent, respectively, against a resulting year-on-year decrease in GOPPAR of 1.5 per cent.
Occupancy in the city was higher than in London, at 83.6 per cent, with average room rate sitting at £94.27, almost half that of the capital.
In mainland Europe, hotels are generating revenue and keeping more of it. November marked the third consecutive month of year-over-year GOPPAR gains for hotels in the region.
GOPPAR was up 4.8 per cent in the month over the same time last year, but is still down 1.3 per cent year-to date, indicative of a previously listless profit performance, despite RevPAR that is up 1.2 per cent.
In November, RevPAR was up 4.2 per cent year-on-year, buoyed by a 1.9 per cent increase in average rate and a 1.6-percentage-point uptick in occupancy to 72.5 per cent.
Published Date: 07/01/2020