Strong Hotel Performance in June
“London has had another fantastic month with performance returning to the sorts of levels that we used to see prior to 2007,” said partner for Hotel Consultancy Services at PKF, Robert Barnard.
“Increases in room rate have largely driven the growth, but occupancy shouldn’t be ignored as it nudges the 90% mark. The economic backdrop is still challenging so hoteliers should not get too comfortable yet. However, with the Olympics only a year away now, there is scope for some level of on going optimism.”
Looking at the cumulative year-to-date figures, the first six months of the year show similarly strong figures for London. Room rate is up 11.2% from £115.77 to £128.73 and occupancy has risen 0.3% to 80.5%. Rooms yield has increased 11.5%, from £92.87 in the first 6 months of last year to £103.57 in the same period this year.
Hotel Performance in the Regions
In June in the regions, room rate rose 0.6% to £63.58; occupancy increased 5.4% to 78.8%. Rooms yield was therefore driven up by 5.9% from £47.30 last year to £50.10.
The regional cumulative figures for the first six months of 2011 show an increase, but not quite as strong as for London hotels. Room rate is so far up 0.3% from £59.98 to £60.18, room occupancy has increased 1.5% on the same period last year, and rooms yield grew 1.8% from £40.13 to £40.85.
“In the regions, it was heartening to see another steady month,” continued Barnard. “As the holiday season begins to start in earnest, and with many households still under pressure from increasing petrol and food prices, hoteliers in the regions will be crossing their fingers for staycations to once again boost their summer figures.”
Manchester posted an impressive performance thanks in part to the Unison National conference and an international medical conference during June. Room rate was up 8.5% to £79.28, room occupancy increased 10.6% to 83.7% and rooms yield grew an impressive 20.0% to £66.37 compared to £55.33 last year.
Edinburgh also had a strong month, with room rate increasing 8.1% to £95.58, room occupancy rising 5.7% to a stellar 91.7% and rooms yield growing 14.2% to £87.05.