London Games results in record rise in profits for London hotels
The 2012 Games provided an incredible boost to the London hotel market according to the latest survey by TRI Hospitality Consulting.
August witnessed London hotels register a record-breaking 107.3 per cent increase in Gross Operating Profit per Available Room (GOPPAR).
London full-service hotels were in a unique position to increase room prices as average room rates rose by a staggering 48.9 per cent. Combined with an increase in occupancy of 84.1 per cent.
Total revenue per available toom (RevPA) increased by 47.6 per cent as hotels benefitted from hosting corporate Olympic-related events significantly enhancing food, beverage and conference revenues.
August performance provided the much a needed boost to the London hotel market, after a relatively weak June and July.
“The astonishing growth experienced in London for August will almost certainly carry through to a positive outcome for the remainder of 2012; however, when excluding the one-off global event of the Olympics, London hotel market revenue and profit growth is slowing,” said David Bailey, deputy managing director at TRI Hospitality Consulting.
Of the ten cities polled for August, Munich achieved the highest growth in year-on-year RevPAR (+54.7 per cent) and (GOPPAR) (+196.1 per cent). These impressive results were supported by the city hosting the ESC Cardiology Congress, attracting close to 30,000 attendees over a five-day period.
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