28 September 2009

UK hotels suffer poor August

UK hotels suffered a poor August mainly to a slump in room rates.

Preliminary monthly figures from PKF Hotel Consultancy Services show that in London, room rate was down seven per cent on the same month last year from £109.77 to £102.07.

Occupancy also dropped, by 2.3%, from 83.7% last year to 81.8% this year. Rooms yield was down 9.2%, from £91.96 to £83.53.

Rooms yield in the UK regions was down 11% from £49.57 to £44.10. This was largely as a result of an eight per cent decline in room rate from £66.19 in 2008 to £60.91 in 2009. Occupancy also dropped, by 3.3%, from 74.8% to 72.4%.

Year to date figures for both London and the regions painted a similar picture with rooms yield down 7.7% from £96.04 to £88.63 and 13.3% from £48.76 to £42.27 respectively.

Edinburgh was able to achieve growth in occupancy in August from 88.9% last year to 91.3% this year. But room rate was down 7.1% which dragged down the city’s overall performance. Rooms yield was down 4.7% to £102.61.

Leeds and Liverpool were also able to increase occupancy, but again yield was pulled down by the drops in room rate. Room rate in Leeds was down 8.4% to £58.26 while occupancy rose 3.0% to 73.7% on the same month last year. Rooms yield was down 5.7% to £42.93.

Liverpool room rate was down compared to August 2008. It fell 21.2% from £70.91 to £55.86. Occupancy rose by 7.6%, but rooms yield was down 15.3% from £48.51 to £41.11.

PKF hotel consultancy service partner Robert Barnard said: "This year was always going to be a tough one for hoteliers and therefore these figures are not hugely surprising.

"It is heartening to see that occupancy rates are creeping back up in many of the cities - Edinburgh in particular had an astonishing month achieving 91.3% occupancy - and Liverpool managing a 7.6% increase was particularly impressive given the 2008 figures were already boosted as a result of the city’s status as European Capital of Culture. On the flip side, this explains why Liverpool’s room rate is down so dramatically.

"But, ultimately, if hoteliers can continue to draw in visitors, they will be in a better position to slowly increase room rate as soon as the economic situation allows them to."

by Phil Davies