High occupancy fuels revpar growth in London hotels

28 October 2004
High occupancy fuels revpar growth in London hotels

Average room rates in London hotels exceeded £90 in September for the first time since the terrorist attacks of 2001, according to the latest figures from Tri Hospitality Consulting.

The 6.7% rise in room rates to £91.19 fuelled a 7.7% increase in revenue per available room (revpar) to £78.22.

London hoteliers have been able to push up average room rates because they are now running close to full capacity. However, occupancy grew more slowly in September, by 0.8 percentage points to 85.8%.

A similar pattern emerged in the provinces. Revpar grew by 5.3% to £51.40 on the back of a 4.4% rise in room rate to £66.87 and a small increase in occupancy, which advanced by 0.7 percentage points to 76.9%.

Over the first nine months of the year, revpar surged ahead by 14.8% to £69.54 among London hotels. This growth stemmed from a 7.8% rise in room rate to £86.59 and occupancy levels that were 4.9 percentage points ahead of last year at 80.3%.

"A sharper rise in profitability can now be expected because increases in rate drive profits faster than increases in occupancy," said Tri managing director Jonathan Langston.

by Angela Frewin

Buy this week's Caterer magazine for more industry news and analysis

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking