London hotels experience healthy spring
UK hotels performed healthily in May with London showing particularly strong growth.
According to PKF Hotel Consultancy Services’ figures for last month, room yields in the capital showed a double digit growth for the second consecutive month.
The yields rose by 16.5% to £118.24, driven mainly by a 14.8% increase in room rate to £138.50 alongside a 1.5% rise in occupancy to 85.4%.
All classes of hotels in the capital showed an increase in rooms yield, with the luxury hotel segment the most buoyant.
Meanwhile, hotels around the rest of the UK reported a 1.3% increase in rooms yield to £45.02. This was the result of a 2.1% increase in occupancy to 74.0%, which offset a 0.8% decline in room rate to £60.85.
PKF says hotels in Cardiff, Edinburgh and Manchester performed the most successfully, posting rooms yield growth of 17.8%, 10.1% and 8.9% respectively.
PKF partner Robert Barnard said: “This is the most positive set of results so far this year, particularly for London. Hotels in the capital have seen rooms yield rise sharply for the second month in a row and the fact that all hotel classes, from basic tourist accommodation through to high end deluxe operations posted strong results demonstrates the resilience of London as a hotel destination.
“That said, hoteliers should avoid cracking open the champagne just yet. Significant challenges remain – particularly for operators outside London that are reliant on the challenging MICE (meetings, incentives, conferences and exhibitions) and corporate markets – and skilful revenue management will be required to ensure that this nascent recovery isn’t snuffed out in the coming months.”
Dinah
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