Hotel Analysis Data Reveals Strong Performance in May
The latest UK hotel analysis data reveals that the recovery remains strong in London, with other areas lagging behind.
The UK’s key cities performed well in May, many posing increases in room rate and occupancy – however, the capital remains the strongest performer.
Hotel Analysis: London
According to preliminary May figures released today by PKF Hotel Consultancy Services, rooms yield in London showed a double digit increase for the second consecutive month, rising by 16.5% to £118.24. This was driven primarily by a 14.8% increase in room rate to £138.50 alongside a 1.5% rise in occupancy to 85.4%.
All hotel classes in the capital recorded an increase in rooms yield, with the luxury hotel segment proving particularly buoyant.
Hotel Analysis: The Regions
Hotels in the rest of the country reported a 1.3% increase in rooms yield to £45.02. This was the result of a 2.1% increase in occupancy to 74.0%, which more than offset a 0.8% decline in room rate to £60.85.
“This is the most positive set of results so far this year, particularly for London,” explained PKF partner Robert Barnard, “Hotels in the capital have seen rooms yield rise sharply for the second month in a row and the fact that all hotel classes, from basic tourist accommodation through to high end deluxe operations posted strong results demonstrates the resilience of London as a hotel destination.”
However, significant challenges remain – particularly for operators outside London that are reliant on the challenging MICE and corporate markets – and skilful revenue management will be required to ensure that this nascent recovery isn’t snuffed out in the coming months.