Hotel Performance: Figures Reveal Stable Hotel Performance
After the turbulence of recent years, it seems that the UK hotel industry has stabilised with RevPAR, Occupancy and Rate data remaining steady.
New figures from PKF Hotel Consultancy Services highlight the stability of February and March – news that will be welcomed by UK hoteliers looking for sure signs of a recovery in the industry.
Hotel Performance: London
In London, although room occupancy was down in February, by 4.7% from 79.3% in 2010 to 75.6% in 2011, rooms yield increased by 1.7% year on year. This can be attributed to an increase of 6.7% in room rate from £120.28 in 2010 to £128.31 in 2011. Preliminary data for March suggests the capital is heading for a stronger month. Room rate increased 7.4% from £114.53 to £122.98; room occupancy increased 1.5% to 81.8% and rooms yield increased by 9.0% from £92.35 in 2010 to £100.62 in 2011.
Hotel Performance: Regions
In the regions, final figures for February show room rate increasing 1.8% from £59.81 in 2010 to £60.91 this year. Room occupancy did decrease slightly from 65.3% last year to 64.5% this year, but rooms yield was up overall from £39.09 last year to £39.27 this year, an increase of 0.5%. Preliminary figures for March show that room rate is up 1.4% to £61.39, room occupancy stayed flat at 67.0% and rooms yield has increased by 1.3% to £41.13.
“These are healthy figures for the industry and I expect, particularly for London, that the figures will remain strong over the next few months with the Royal Wedding at the end of April expected to bring in additional visitors to the capital,” explained PKF partner, Robert Barnard.
“However, the rest of the year is likely to be less settled as the industry continues to be impacted by broader worldwide issues. London should be less affected especially as it benefits from the build up to the Olympic Games and the Champions League Final. The regions however, will more likely have a slower recovery and be dependent on growth in the MICE and corporate markets.”
Hotel Performance: Individual Cities
March figures for individual cities in the regions, show a relatively mixed picture. Rooms yield has mostly increased, but in some cities this was down to a rate increase, while in others an occupancy increase. For example, in Leeds, room rate declined 0.3% to £62.84, but room occupancy was up 0.8% to 74.6%. This meant rooms yield increased overall by 0.5% to £46.89. Meanwhile in Birmingham, room rate was up 4.2% to £62.47, room occupancy was down 4.0% to 71.7% and rooms yield was up 0.1% to £44.76.