London’s hotels have not suffered the immediate post-Olympics slump in demand which affected other host cities after previous Games.
The city saw occupancy levels rise by 3.1 percentage points to 89.5 per cent in September compared to the same month last year – although average room rates dipped by 3 per cent from £142.07 in September 2011 to £137.87 last month, according to the latest Hotstats report from hotel data firm TRI Hospitality Consulting.
TRI’s managing director Jonathan Langston said: “While there were rumours of a potential post-Olympic slump as experienced in previous host cities, which appeared even more plausible if you take the challenging economic environment into account, London hoteliers have responded with the strongest September occupancy performance recorded since Hotstats began capturing data for the London full-service hotel market.”
Properties in London benefited from higher occupancies which helped revpar to grow by 0.6 per cent to an average £123.33.
“As always, London continues to exceed expectations,” added Langston. “Despite the initial slump in headline performance figures during June and July, the strong start to the year in addition to the performance in August and September has almost guaranteed that year-on-year performance for London hotels in 2012 will be up on 2011.”
There was also a rise in occupancy for UK hotels outside London with a 2.5 percentage point rise to 79.5 per cent during September. Although average room rates were down by 3.2% to £72.11 for the month while Revenue per available room: A common metric used by the hotel industry to indicate performance. was flat at £57.31 year-on-year.
“Unfortunately there appears to be no respite for provincial hoteliers and we anticipate that profit levels will continue to erode as food prices are set to soar with adverse weather conditions over the summer having blighted UK harvests,” said Langston.