London hotels are ‘back on track’, according to TRI Hospitality Consulting, seeing revenue per available room (revPAR) improve by 6.4% year-on-year to £85.74 in November.
The growth was driven by a 3.9% increase in average room rate to £103.33 – the first time it has broken through £100 in 2005 – and a 1.9 percentage point rise in occupancy to 83%.
Outside the capital growth was slower, with provincial hotels reporting revPAR up 4.4% at £50.56. Average rate increased by 3.4% to £69.16, but occupancy was near flat at 73.1% (+0.7pp).
This resulted in UK-wide Nov05 revPAR of £61.70, a year-on-year increase of 5.1%, with rate up 3.7% at £80.93 and occupancy up 1pp at 76.2%.
However, the year-to-date figures show the effects of the 7/21 July terrorist incidents on London’s hotels, as despite a strong first half revPAR in the capital was just 1.9% higher than in the corresponding eleven months of 2004 at £73.82, with a 2.1pp decline in occupancy to 77.5% offsetting a 4.6% rise in rate to £95.26.
Provincial hotels fared better, seeing YTD revPAR improve by 3% to £47.91, driven by a 3.3% rise in rate to £67.11 as occupancy slipped 0.2pp to 71.4%.
David Bailey, TRI director, commented: ‘London hotels will finish 2005 at a higher level than they started but the final increase must be seen as a disappointment compared to what was hoped for a year ago. On the other hand, the swift recovery has demonstrated that London is a robust and resilient market for the hotel business.’
For the UK as a whole, YTD revPAR was 2.8% ahead at £56.16, with room rate increasing by 3.9% to £76.58 but occupancy falling 0.8pp to 73.3%.