London hotels affected by economic crisis

Hotel News - 27/10/2008

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In September, the average occupancy rates at hotels in the City and Docklands dropped by over four per cent.

Data collected on over 100 hotels in London showed a drop in profits of nearly 11 per cent, down to £66.66 per room per day.

Average occupancy also dropped from 86.8 per cent to 82.7 per cent for the month, as compared with the same month last year.

“The loss of rack and high-paying corporate bookings contributed to a 1.9% drop in daily achieved average room rate to £118.20. Revenue per room fell by 6.6% to £97.74,” according to figures published in the TRI Hospitality Consulting study.

Jeremy Langston, TRI’s managing director, commented: “September’s events were unprecedented and had a direct impact on some hotels in London’s financial district.”

He went on to say: “With mounting evidence that the credit crisis is now feeding into all aspects of the global economy, competition for business is likely to intensify for all London hotels.”

For hotels located outside the capital, September was the fifth consecutive month of negative growth in both profit and occupancy.

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