15 December 2008

UK hotels face further woes in economic downturn

Hotels in the UK face further knocks in 2009 due to the impact of the economic downturn.

A report by PKF Hotel Consultancy Services shows that UK hoteliers continued to suffer from the knock-on effect in November.

They saw further declines in room rate, occupancy and rooms yield.

And there appears to be no respite, with hotel consultancy services partner Robert Barnard saying: Ã¢â¬ÅâœAs there is still no end in sight to the current economic downturn, it is unfortunately probable that hoteliers will have to endure further knocks in 2009.Ã¢â¬~

November figures show the room rate in London down 5.6% on the same period last year from Ã&#pound;137.29 to Ã&#pound;129.93, while occupancy fell 6% to 79.5%.

This meant rooms yield declined by 11.1% to Ã&#pound;103.32.

The demonstrations in Thailand, which closed many of the countryÃ¢â¬â¢s airports, could be in part to blame for the capitalÃ¢â¬â¢s losses, but largely the falls are due to a lack of business travellers to the city as companies across the globe look to cut costs, according to PKF.

In the regions, room rate was down 2% from Ã&#pound;76.68 in 2007 to Ã&#pound;75.17 while occupancy fell 5.6% to 69.3%. Overall, rooms yield was down from Ã&#pound;56.23 to Ã&#pound;52.06, a drop of 8%.

Barnard said: Ã¢â¬ÅâœFigures from hoteliers in the last few months have shown they are beginning to feel the inevitable squeeze from the UK, and global, economic downturns. November was unfortunately no different

Ã¢â¬ÅâœIn the capital however, looking at the year to date figures, there was some growth to see as room rate is up 4.7% on the same 11 month period in 2007, while overall, rooms yield was up 3.2% on the same period.Ã¢â¬~

by Phil Davies