Reports are now showing that hotels in London have seen a major improvement in performance in December. Despite this good news for the capital, the properties outside of London continue to go downhill.

The hotel in London actually saw an increase of 23 percent in gross operating profit per available room. Occupancy levels also increased by 5.9 percent last month to an average of 77.3 percent. Jonathan Langston, the managing director at TRI Hospitality Consulting, said that London hoteliers appear to have gotten the proposition absolutely right with the massive declines in profitability experienced in January of 2009. Now these big declines in profitability are a simple distant memory to the capital.

Despite this, Langston did warn that hotels in London would need to keep a watchful eye on their costs in 2010. Hotels outside the capital were still suffering with a 2.2 percent decline in revenue per available room in December.

Mr Langston said that the loss of business in some of the UK’s major cities has had a massive impact on the profitability of their hotels. Following the boom year in markets such as Manchester and Liverpool, under performance and oversupply has led to huge declines in profitability. The gross operating profits per available room dropped by 22.7 percent in Manchester last year and 26.4 percent in Liverpool.

Around the global, not just in the UK, hotels have been suffering. Of course, experts are quick to point out that it’s not just the hotel industry that is having a hard time. They go on to say that any business that is related to the travel industry has been having a hard time fighting off this downturn in demand. The companies that have remained profitable are the best of the best.

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Filed under Business & Finance, Hotel Chains, Travel News, UK News

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This entry was posted on Monday, February 1st, 2010 at 9:17 am and is filed under Business & Finance, Hotel Chains, Travel News, UK News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.