The latest HotStats survey by TRI Hospitality Consulting showed that daily profit in London fell almost 16% to £45.62 per available room compared to Q108.
The average room rate fell 5.5% and occupancy was down 3.7 percentage points at 72.9%.
In the provinces, daily profit fell by almost 20% to £21.22 per available room, while the average room rate dropped 5.6% and occupancy 3.8 percentage points to 61.4%.
The UK hotel market is seeing a shift away from high-yielding corporate room lets in favour of leisure bookings.
One central London hotelier commented that her hotel was now busier at weekends than during the week, a reversal of normal trading.
Jonathan Langston, managing director, TRI Hospitality Consulting, said: ‘Despite the expected better performance in March alone caused by comparison with last year’s early Easter, 2009 is shaping up to be a particularly challenging year for UK hoteliers.’
‘As we move further into the recession, we’re continuing to see declines in revenue and profit.
‘However...the first quarter is always the least profitable of the year since it includes January and February, the two quietest trading months.’
Although occupancy is down year-on-year, it is still higher than it was in the recessions of the early 1980s and 1990s, added Langston.
See also:
London hotels no longer most profitable (03/03/2009)
Slide in corporate demand hits UK hotels (25/03/2009)
Downward trend continues at UK hotels (25/02/2009)
Hotels 'better prepared' than in last recession (09/02/2009)