Hotel Performance: Recovery in Full Swing
New hotel performance data reveals that recovery is now in full swing, despite the current economic climate.
Hotel performance held up throughout April according to data released by PKF Hotel Consultancy Services. Hotels both in and out of London recorded strong RevPAR growth and modest occupancy growth.
Strong Hotel Performance
London recorded a 9.7% year-on-year increase in rooms yield from £94.86 to £104.06, as a 5.6% rise in room rate from £117.53 to £124.11 was reinforced by a 3.9% improvement in occupancy from 80.7% to 83.9%
Hotels in the regions, which had suffered during a difficult winter season, also posted strong results. Rooms yield rose by 3.7% to £39.27 in April 2012 compared with £37.86 a year ago. This was the result of a 3.5% increase in room rate from £54.04 to £55.93 and a 0.2% improvement in occupancy from 70.0% to 70.2%.
“This is a stellar set of results, particularly at a time when most of the economy remains in the doldrums,” said PKF partner, Robert Barnard. “We may have seen even stronger performance if not for it being one of the coldest and wettest April’s on record.”
“It is encouraging to see London coming close to posting double digit rooms yield growth as it begins to gear up for the Diamond Jubilee, Olympics and Paralympics. What makes this all the more impressive is that we are comparing against April 2011, when the capital was buoyed by the Royal Wedding.”
Elsewhere, it looks like regional hoteliers have successfully emerged from a very challenging winter season. Pressures are likely to remain as many such operators rely on the meetings, incentives, conferences and exhibitions (MICE) market, which continues to flatline. But they are unquestionably making the best of a very tricky situation.