UK hotels saw occupancy and rooms yield fall in 2008, according to the latest figures from accountants and business advisers PKF.

Its Hotel Britain 2009 report, based on the performance of 548 hotels with 88,000 rooms across London and the regions, found occupancy dropped 2.5% to 73.9%.

Rooms yield fell from £74.33 in 2007 to £74.10 in 2008, but AARR increased by 2.3% to £100.33 across the UK as a whole.

In London, AARR increased year on year by 3.8% to £140.56 and this pushed rooms yield up by 2.0% to £112.74. Occupancy was down by 1.7% to 80.2%.

Hotels in the regions reported negative growth with rooms yield down 2.4% on 2007 to £53.55.

Occupancy also fell, down 2.9% to 70.5%, but AARR managed a small increase of 0.5% to £75.99.

Two cities bucked the downward trend - York and Liverpool.

Liverpool was European Capital of Culture in 2008 and had the highest occupancy growth of the 23 regional cities in 2008, jumping 6.0% year on year to 77.9%.

York had an equally impressive year and posted one of the highest occupancy levels in 2008, up 3.2% to 80.8%, higher than London hotel occupancy levels.

PKF hotel consultancy services partner Robert Barnard said UK hotels face a challenging year in 2009 due to the deepening economic downturn.

“There is no doubt that there are challenges ahead, but while this 2009 edition of Hotel Britain is the gloomiest yet, there are important positives to remember.

“The UK is hosting a number of international sporting events in 2009 such as The Ashes and the ICC World Twenty20 and these may boost UK visitor numbers.

“Equally, Sterling has dropped to record lows against the Euro and the US Dollar and this should encourage visitors from both Europe and North America who, in the last few years, have avoided the UK due to the strength of Sterling.

“The North American visitor market to the UK may also be buoyed on two fronts by the appointment of new USA President Barack Obama: firstly, because we are no longer in an election year when most Americans tend not to travel; and secondly, by aiding consumer confidence which may encourage people to travel.

“Finally, while the luxury sector is slowing, the budget end of the spectrum is still reporting positive results and both Premier Inn and Travelodge have aggressive development plans for 2009.”

By Bev Fearis