UK hotels still a long way off 2000 rates
UK hotels have begun to increase room rates in response to a recovery in demand, according to recent surveys, but it will be some time before a return to “the golden days” of 2000. Figures released by TRI Hospitality Consulting suggest that hotels in London recorded occupancy levels of 83.5% in October, and in response room rates increased marginally to an average £86. This rate is still 13.4% below October 2000. Hotels outside London also posted good results in October according to TRI, with occupancy up marginally from the same month last year to 75%, and room rates up 1.6% to an average of £66. TRI Hospitality Consulting managing director, Jonathon Langston said hoteliers can now switch from “survival mode” to “market optimisation”. He added: “The last three years have seen the worst sustained downturn in memory and nobody will pretend that there isn’t still a mountain to climb.” Similar results were presented by accountants and business advisors, PKF. According to its survey, London occupancy rates rose 5.1% in October to 82% and room rates edged up less than 1% to around £100. Outside London the figures are closer to those recorded by TRI. According to PKF regional hotels had an average occupancy of 75% in October and rates moved up 1.6% to £64. Commenting on the results, PKF managing director for hotel consultancy services, Melvin Gold said: “The stronger room rate trend, especially in regional UK hotels, is contrary to the trend so far this year and is perhaps a sign of hoteliers’ confidence showing through in their room rate policies.”
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