UK hotels have best year in a decade
UK hotels achieved their highest rooms yield growth rate for a decade in 2006, according to new figures – but growth rates are unlikely to be sustained this year.
The average daily room yield last year in London was 16.8% higher than the 2005 figure of £79.84 – an annual growth rate not seen since 1985.
Adjusted for inflation, the room yield of £93.28 reported by hotels in the capital was the highest since 2000.
“Strong demand for hotel rooms in the capital drove this exceptional performance with both average daily room rate and occupancy rising by 7.2% and 9.0%, respectively,” said PKF hotel consultancy services. There was a similarly strong performance in the regions in 2006 with room yield growth of 4.6% – the highest rate since 1998 – to £52.28 compared to £50 in 2005.
Adjusted for inflation, rooms yield for regional hotels in 2006 is also the highest since 1998. This is due to higher average daily room rate and occupancy – up 2.4% and 2.1% respectively in 2006 compared to 2005, the PKF report said.
“Strong demand for hotel rooms from both domestic and international business travellers was an important driving factor towards this impressive performance, as were the various local events and conferences across the regions that draw in additional leisure visitors,” it said. PKF hotel consultancy services partner Robert Barnard said: “We predicted earlier in the year that 2006 would be an impressive one for UK hotels, but our predictions are conservative compared with the final figures. “Looking forward to 2007, it looks likely that the UK hotel market will see continued growth. To quite what levels however, is dependent on the economy, politics and events worldwide.
“With UK interest rates on the rise and another hike expected, the spectacular growth rates seen this year are likely to be toned down in 2007.”
Preliminary year to date figures for 2006
| Rooms department | 2006 | 2005 | % change |
| UK Regional hotels (501) | |||
| Average daily room rate per occupied room | £71.30 | £69.60 | 2.4 |
| Average daily room occupancy | 73.3% | 71.8% | 2.1 |
| Average daily rooms yield per available room | £52.28 | £50.00 | 4.6 |
| London hotels (173) | |||
| Average daily room rate per occupied room | £114.70 | £106.98 | 7.2 |
| Average daily room occupancy | 81.3% | 74.6% | 9.0 |
| Average daily rooms yield per available room | £93.28 | £79.84 | 16.8 |
by Phil Davies
Phil Davies
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