London drives UK hotel profitability
Added/updated: Tuesday 11 March 2008, Category: News summary
Latest TRI Hospitality Consulting figures show the profitability of UK hotels increased by 2.2% year-on-year in January 2008. Income before fixed charges per available room came to ₤28.97, versus ₤28.35 in January 2007. The revPAR growth was driven entirely by rates, which were 4.6% higher at ₤87.19, as occupancy declined by 0.5pp to 63.6%. ‘January is historically the weakest month of the year for hotels, so despite no change in volume it is encouraging to see London’s hoteliers still pushing rate upwards,’ commented David Bailey, deputy managing director of TRI. Outside London there was little change in profitability, with IBFC per available room of ₤19.14, versus ₤19.16 in January 2007.