Hotel Performance Strong in July
The latest hotel performance indicators reveal that the UK hotel industry is booming in London and holding its own in the regions.
Figures from PKF Hotel Consultancy Services show a 0.6% rise in room occupancy, a 6.1% rise in room rate and 6.7% RevPAR increase for London hotels. This paints a healthy statistical picture of hotel performance in the capital with room occupancy standing at 92.5%, rate at £163.01 and rooms yield holding strong at a robust £150.80.
“The capital in particular has benefited from the official summer season, and possibly some staycations, with tourists checking into London,” explained PKF partner Robert Barnard. “Unfortunately the August figures may reflect a different picture as the riots which occurred during the month could have a negative impact on hotel bookings.
Regional Hotel Performance
Regional hotels have also posted strong results and recorded year-on-year increases. Room rate was up 1.6% from £67.05 in 2010 to £68.13 in 2011. Room occupancy was up 1.8%, from 77.9% last year to 79.3% this year, while rooms yield is up 3.4% overall to £54.04.
Hotel Performance in Other Key Cities
Looking at individual cities, Manchester had another strong month with room rate increasing by 2.6% to £67.37, room occupancy increasing 5.7% to 82.5% and rooms yield up an impressive 8.5% to £55.58.
Edinburgh had a slower month with room occupancy down 1.0% on the same time last year, but at 91.1%, occupancy is still strong for the city and reflects Edinburgh’s on going attraction for tourists, particularly as it gears up to the festival in August. Room rate was up slightly, by 0.4% to £86.52, but overall rooms yield was slightly down on last year from £79.33 to £78.85.
Finally, Leeds had a steady month with room rate increasing 0.7% to £59.69, room occupancy falling slightly by 0.1% to 77.6% and rooms yield therefore up marginally by 0.6% to £46.30.
Pundits are less secure about hotel performance results in August, which was a difficult month for hoteliers – especially with the nationwide riots.
Continuing uncertainty for the global economy may also be a factor which affects the figures for August, as well as the coming months, but it is too early to say for certain at this stage.