Hotel managers in London to get profits boost?

09/02/2010 11:12:06

Hotel managers in London are to be boosted by an expected surge in profits over the next two years, according to TRI Hospitality Consulting.

The company has forecast that revenue per available room (Revpar) will increase by 2.5 per cent in 2010 and 3.4 per cent in 2011.

This follows the massive reduction of 6.4 per cent in 2009, largely due to the first three months of the year.

Hotels in the UK are forecast to make a slight loss in Revpar of 1.4 per cent this year, with recovery expected next year as Revpar increases to 3.0 per cent.

Jonathan Langston, TRI Hospitality Consulting managing director, said: "Our research indicates that there is a close relationship between movements in rooms revenue performance and total revenue performance for both UK provincial and London hotels."

He added, though, that hotel managers in London can adjust fixed costs in response to changes in revenue performance quicker than their provincial counterparts.

Recent figures from PKF Hotel Consultancy Services showed that hotel managers in London had a successful festive period, but the situation was bleaker elsewhere in the UK.

Hotel recruitment in the UK

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