London hotels enjoyed a 7% rise in average room rate last year, according to new figures released today (January 27).
The HotStats survey by hotel analysts TRI Hospitality Consulting found London properties had their second consecutive year of profit growth in 2011.
The 7% increase follows a an average room rates rise of 13.9% in 2010.
The 2011 increase included a 4.7% rise in proft per room and a 6.1% increase in revenue per available room (revPAR).
The rise in average room rates saw prices jump from £122.45 to £131.03.
The analysts said while 2010 was always going to be a “hard act to follow”, London hoteliers had “managed to exceed expectations, primarily due to a strong period of operation during the second quarter of the year.”
But if the year went well, TRI said the month of December was less good and saw a 9.2% fall in profit per room.
This, it said, was the thrid consecutive month of year onyear decline for London properties.
It was also the “greatest monthly year-on-year drop in this measure for hotels in the capital since August 2009.”
Jonathan Langston, managing director of TRI, said: “Despite a challenging economic backdrop, London hotels have again outperformed expectations by showing profit growth in 2011.
“While the profit growth was more moderate than in 2010, it shows that hotels can buck the economic trends.”
But hotels in the UK regions saw their profts fall for a fourth consecutive year.
While Revenue per available room: A common metric used by the hotel industry to indicate performance. rose by 1.5%, overal profit dropped by 3.2% during the year.
Langston said the regional properties had been hit by bad weatehr at the start of the year and then the timing of the Royal Wedding and Easter.
He said there had also been a drop in corporate business which was down 0.3%, and from conferences, down 1.7%.
The TRI survey covered 550 full service hotels throghout the UK.