24 November 2008

UK hotels ââ¬Ëœstill holding their ownââ¬â¢ against recession

UK hotels suffered a slow month in October but the industry is still ââ¬Ëœholding its ownââ¬â¢.

Room rates in London rose 0.1% on last year to Ã&#pound;147.45, but the slowdown in business travel meant occupancy saw a 3.2% decline from 86.5% to 83.8%.

Overall, this meant room yield was down 3.1% from Ã&#pound;127.58 last year to Ã&#pound;123.61 this year.

In the regions, occupancy was down 5.8% on 2007 from 77.2% to 72.7%. 

Room rate also fell 1.5% to Ã&#pound;76.19 which meant rooms yield was therefore down 7.6% on 2007, from Ã&#pound;59.70 to Ã&#pound;55.42.

Room rate increased in some cities and both Liverpool and Leeds bucked the downward trend.

Robert Barnard, partner for Hotel Consultancy Services at PKF Hotel Consultancy Services which conducted the study, said: ââ¬ÅâœThe continued global economic woes mean that the lack of growth experienced by many hoteliers in October, were to be expected.

ââ¬ÅâœIt is important to note that the falls overall were fairly moderate and the industry, while feeling the effects, is still holding its own.

"Occupancy in the capital is still at 83.8%, while in the UK as a whole, the hotels in our survey are at 72.7% of their capacity.ââ¬~

by Phil Davies 

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• Falling Pound
  
  

  Yep falling pound helps but when everyone else is in the same boat I won't be expecting a huge surge in foreign visitors !

  By Chris Sharp, Tuesday, November 25, 2008
• holding their own?
  
  

  I find it odd that a drop in RevPAR is considered to be "holding their own" What we've seen so far is probably just the tip of the iceberg. Objectively the only thing going for the UK hotel sector currently is a falling pound.

  By macy marvel, Monday, November 24, 2008