London hotels enjoying a boost from foreign shoppers

Hotel News - 01/07/2010

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Shoppers from China, the Middle East and France, keen to exploit favourable exchange rates and good weather, have been flooding into the UK. The wave of tourists has helped London hotels get back to the levels of activity and profitability they enjoyed before ash from the Icelandic volcano brought European air travel to a halt in April.

Thanks to all the foreigners shopping in London, gross operating profit per available room, or goppar, was up 10.7 per cent in May, to £66.44. Over the same period, revenue per available room, or revpar, rose nine per cent, to £98.88. Occupancy in London hotels expanded by 1.9 points, to 83.31 per cent, the best it has been this year. However, the most useful improvement was the increase in the average price for a hotel room, which hit £119.06, an increase of 6.6 per cent, and a fundamental reason for the handy rise in revenues.

May also turned out to be a good month for hotels in the regions, giving them their first month of increased profitability this year. Regional goppar rose 2.2 per cent, to £32.64. At £50.52, revpar in the regions was up by 5.3 per cent, its first increase in ten months.

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