23 September 2008

Ã¢â¬ËœSteady yearÃ¢â¬â¢ for UK hotels despite economic turmoil

UK hotels maintained steady occupancy levels, room rate and rooms yield figures in August despite poor weather.

Room rate in the regions was up 1.9% from Ã&#pound;71.49 last year to Ã&#pound;72.84 but occupancy levels were down 2.0%. This meant rooms yield fell slightly on 2007 by 0.2%, according to PKF Hotel Consultancy Services.

Hotels in London saw 4.4% growth in rooms yield on the same time last year. This was largely down to a 5.7% increase in room rate from Ã&#pound;126.42 last year to Ã&#pound;133.68. Occupancy levels dipped marginally, down 1.3%.

Year to date figures show the capital has so far had a good 2008 with rooms yield up 7.2% on 2007, according to the PKF figures.

Birmingham, Cardiff, Leeds and Liverpool all had strong months. In Leeds, rooms yield increased by 6.1% on 2007 Ã¢â¬' a combination of a 4.2% rise in room rate and a 1.8% rise in occupancy.

In Cardiff occupancy was up 4.8% and room rate 6.7%. These rises meant rooms yield jumped from Ã&#pound;48.88 to Ã&#pound;54.69. The increases are likely to be largely because 2007 was a slower year than normal for the city.

Liverpool continued to build momentum as European Capital of Culture as the year develops. Rooms yield was up 16% in August over the same month in 2007.

PKF Hotel Consultancy Services partner Robert Barnard said: Ã¢â¬ÅâœWe are now well over half way through what can only be described, from an economic perspective, as a turbulent year compounded by the events of black Monday, 15 September 2008.

Ã¢â¬ÅâœLooking solely at the UKÃ¢â¬â¢s hotel figures for 2008, however, you would be for forgiven for forgetting about the turmoil as hoteliers across the country have so far experienced a steady year.

Ã¢â¬ÅâœIt is true that there have been some dips in occupancy over the last eight months, but these have been by no means drastic. 2007 was also a very strong year and therefore some losses in 2008 were to be expected.

Ã¢â¬ÅâœLetÃ¢â¬â¢s hope this momentum is maintained, but inevitably there will be some fallout with the markets as they are.Ã¢â¬~

by Phil Davies