Dorchester group’s average daily rate boosted by ‘surge in demand’ for luxury hotels

The Dorchester group said it saw “strong increases” in average daily rates across its hotel portfolio during 2022.

In the UK, the group owns the Dorchester hotel in London, while Coworth Park in Ascot and 45 Park Lane in London are its leased properties.

Writing in its full-year accounts for 2022, the group's directors said its hotels were boosted by the “surge in demand” for the luxury accommodation sector from leisure travellers.

They said the recovery in the corporate, meetings and incentives side of the business was slower but “steadily improving”.

Occupancy across its hotels grew to 51%, up from 33% in 2021, but still remained below pre-pandemic levels. Profit before tax also fell from £26.8m in 2021 to £17.1m in 2022.

Despite this, average room rate increased from £829 to £1,042, while revenue per available room (revpar) jumped from £273 to £531.

The group said it will “continue to pursue opportunities to grow the hotel portfolio either through organic growth, acquisitions or through third-party contracts" as it has done in London, Tokyo and Dubai.