Blue Skies Up Ahead: Q3 2014 Hotel Data Review

High occupancy has ruled the roost in the last quarter, as UK hoteliers in London and regions reaped the rewards of the rise in tourism. Visit our interactive Data Centre to dig deeper into the numbers, in partnership with BDO.

NOTE: This article was originally published in the Q4 2014 edition of Hotel Industry Magazine.

July saw occupancy in regional hotels increase by 3.0% to 82.9% as the Commonwealth Games in Glasgow and the British Open in Liverpool brought an influx of spectators. And despite an increase in supply with a number of high-end hotel openings, London continued to perform well with a high occupancy rate at 86.1%.

As occupancy was high, room rate in the regions increased by 11.1% to £64.30 and in London by a 1.3% increase to £139.23.

occ-q3-14

Regional rooms yield stood at £53.28, up 14.4% and yield in the capital increased 0.3% to £119.88.

Increased foreign tourism in London meant that hotels in the capital went on to achieve the highest occupancy rate for the month of August since 1999.

Occupancy figures for the UK’s capital increased by 2.3% in August 2014, to 87.2%, while room rate was up 3.0% to £133.90. As a result, rooms yield grew by 5.3% to £116.76.

Regional hotels also had a strong month with rooms yield up 11.7% to £52.22 when compared to the previous year.

revpar-q3-14

Occupancy remained high at 81.7%, an increase of 3.8%. The strong demand also contributed in pushing room rate up 7.7% to £63.95.

In September, UK hotels performance was boosted by good weather, a healthy mix of corporate and sporting events, and also the NATO Summit in Wales.

Strong demand was the main driver of results with regional hotels experiencing a 4.7% increase in occupancy to 83.7%. This helped to push average room rate up by 9.9% to £64.99, and resulted in double digit rooms yield growth (up 15.1% to £54.39).

London also saw demand continuing to grow (up 2.9% to 89.1%) in spite of the recent increase in new supply. Rooms yield for the capital was up 2.2% to £119.84 despite room rate being fairly stable at £134.48 (-0.6%).

rate-q3-14

Strong occupancy is great news for the hotels sector and the knock-on effect on room rate hints at growth in the year ahead. UK hoteliers can feel confident about the health of the industry, as the figures continue to show an upward trend.

NOTE: This article was originally published in the Q4 2014 edition of Hotel Industry Magazine.

BDO

T: 0207 893 2143
W: www.bdo.co.uk

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