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London hoteliers raised room rates by 8% year-on-year in June due to strong demand and good weather, but rising costs prevented profit margins from growing, according to the latest RSM UK Hotels Tracker.
Average daily rates of occupied rooms in London jumped 8% year-on-year from £243.03 to £262.08 in June, and increased from £137.77 to £144.91 across the rest of the UK.
While traveller demand for hotels remained high, occupancy fell from 87.5% to 84.9% in London year-on-year. Occupancy across the UK remained flat at 83%.
Despite higher rates, gross operating profits were unchanged year-on-year in London at 46.7% in June, while UK margins rose slightly from 41.8% to 42.2%.
Chris Tate, head of hotels at RSM UK, said: “Hoteliers are having to work a lot harder to maintain profits in London and see marginal growth in the UK. The hotel industry has proved to be resilient, helped by strong customer demand, which has allowed them to pass on the increase in costs. However, ever-increasing room rates are not sustainable in the long term.
“The hot weather over summer has provided a boost to the industry and goes a long way in improving consumers’ moods, which all helps towards putting a bit more money in people’s pockets.”
Thomas Pugh, chief economist at RSM UK, added: “Stable occupancy rates in the UK and strong price growth reassure us that consumers have been relatively unfazed by the initial energy shock. That matches the signal from strong retail sales in June as households continue to smooth through higher energy prices allowing hoteliers to pass on costs.”
London hoteliers raised room rates by 8% year-on-year in June due to strong demand and good weather, but rising costs prevented profit margins from growing, according to the latest RSM UK Hotels Tracker.
Average daily rates of occupied rooms in London jumped 8% year-on-year from £243.03 to £262.08 in June, and increased from £137.77 to £144.91 across the rest of the UK.
While traveller demand for hotels remained high, occupancy fell from 87.5% to 84.9% in London year-on-year. Occupancy across the UK remained flat at 83%.
Despite higher rates, gross operating profits were unchanged year-on-year in London at 46.7% in June, while UK margins rose slightly from 41.8% to 42.2%.
Chris Tate, head of hotels at RSM UK, said: “Hoteliers are having to work a lot harder to maintain profits in London and see marginal growth in the UK. The hotel industry has proved to be resilient, helped by strong customer demand, which has allowed them to pass on the increase in costs. However, ever-increasing room rates are not sustainable in the long term.
“The hot weather over summer has provided a boost to the industry and goes a long way in improving consumers’ moods, which all helps towards putting a bit more money in people’s pockets.”
Thomas Pugh, chief economist at RSM UK, added: “Stable occupancy rates in the UK and strong price growth reassure us that consumers have been relatively unfazed by the initial energy shock. That matches the signal from strong retail sales in June as households continue to smooth through higher energy prices allowing hoteliers to pass on costs.”
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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