30. August 2010 
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London hoteliers on a high after record breaking room occupancy
Room occupancy levels achieved a staggering 94.1% in London as year-on-year profit conversion levels grew by 31.3% in July, according to the latest HotStats survey from TRI Hospitality Consulting.
“The weight of this record breaking achievement by London hoteliers cannot be praised enough. Although volume is necessary to achieve high room occupancy levels, the management of demand to fill the empty bedrooms during shoulder and low periods is also essential,” said Jonathan Langston, managing director of TRI Hospitality Consulting.
TRI has been publishing the performance of the European hotel market on a monthly basis for the last ten years, but this is the first time that London, or any market in its European sample, has achieved such a remarkable room occupancy. Following the 92.2% room occupancy in July 2009, there did not appear to be any opportunity for further growth in the market during the same period this year, but at 94.1% it is clear that London hoteliers have more effectively distributed latent demand across shoulder and low periods this time around.
“The achievement is particularly impressive considering that our data is recorded from a sample of almost 50 hotels in London. Although some hotels would undoubtedly have achieved below average room occupancy levels, it is conceivable that a number of hotels in our sample achieved a room occupancy closer to 100%” added Langston.
The capacity of London was stretched in July due to significant levels of demand derived from the flocks of tourists, the recovering commercial sector as well as Middle Eastern families escaping the searing heat of their home countries. And this year, London hoteliers had the added bonus of demand generated by the biennial Farnborough Air Show.
In addition to the record breaking room occupancy, at €206.24, hotels in our London sample, which is primarily comprised of properties operating in the four and five-star sector, recorded the highest achieved average room rate since November 2007. As a result, the London hotel market achieved a year-on-year growth in Revenue per Available Room (RevPAR) of 26.2% to €194.06.
“The weight of this record breaking achievement by London hoteliers cannot be praised enough. Although volume is necessary to achieve high room occupancy levels, the management of demand to fill the empty bedrooms during shoulder and low periods is also essential,” said Jonathan Langston, managing director of TRI Hospitality Consulting.
TRI has been publishing the performance of the European hotel market on a monthly basis for the last ten years, but this is the first time that London, or any market in its European sample, has achieved such a remarkable room occupancy. Following the 92.2% room occupancy in July 2009, there did not appear to be any opportunity for further growth in the market during the same period this year, but at 94.1% it is clear that London hoteliers have more effectively distributed latent demand across shoulder and low periods this time around.
“The achievement is particularly impressive considering that our data is recorded from a sample of almost 50 hotels in London. Although some hotels would undoubtedly have achieved below average room occupancy levels, it is conceivable that a number of hotels in our sample achieved a room occupancy closer to 100%” added Langston.
The capacity of London was stretched in July due to significant levels of demand derived from the flocks of tourists, the recovering commercial sector as well as Middle Eastern families escaping the searing heat of their home countries. And this year, London hoteliers had the added bonus of demand generated by the biennial Farnborough Air Show.
In addition to the record breaking room occupancy, at €206.24, hotels in our London sample, which is primarily comprised of properties operating in the four and five-star sector, recorded the highest achieved average room rate since November 2007. As a result, the London hotel market achieved a year-on-year growth in Revenue per Available Room (RevPAR) of 26.2% to €194.06.
