UK hoteliers hold own despite gloomy weather and economic turmoil

Hotels across the UK have maintained steady occupancy levels, room rate and rooms yield figures despite the gloomy weather across the country, according to preliminary August figures from PKF Hotel Consultancy Services.

In London, hotels achieved 4.4% growth in rooms yield on the same time last year. This was largely down to a 5.7% increase in room rate from £126.42 to £133.68. Occupancy levels only dipped marginally, down 1.3% on 2007, and year-to-date figures show the capital has so far had a good 2008 with rooms yield up 7.2% on 2007.

The UK regions, however, experienced a mixed August. Overall, room rate was up 1.9% from £71.49 in 2007 to £72.84 this year and occupancy levels were down 2.0%. This meant rooms yield fell slightly on 2007 by 0.2%.

Birmingham, Cardiff and Leeds all had strong months, as did European Capital of Culture, Liverpool. In Leeds, rooms yield increased by 6.1% on 2007 – a combination of a 4.2% rise in room rate and a 1.8% rise in occupancy.

Liverpool continues to build momentum as European Capital of Culture as the year develops. In August, rooms yield was up 16.0% on 2007.

Robert Barnard, partner for Hotel Consultancy Services at PKF said, ‘We are now well over half way through what can only be described, from an economic perspective, as a turbulent year compounded by the events of black Monday, 15 September 2008.

‘Looking solely at the UK’s hotel figures for 2008, however, you would be forgiven for forgetting about the turmoil as hoteliers across the country have so far experienced a steady year. It is true that there have been some dips in occupancy over the last eight months, but these have been by no means drastic. 2007 was also a very strong year and therefore some losses in 2008 were to be expected.

‘Let’s hope this momentum is maintained, but inevitably there will be some fallout with the markets as they are.’

PKF’s hotel trends surveys feature a broad range of hotels from across the country, mainly in the 3 to 4 star categories and featuring rather more chain-operated hotels than those run independently. While a fair number are in rural areas, there is a predominance of hotels in towns and cities.

• Average achieved room rate: rooms revenue divided by the total number of guest rooms occupied during the period
• Rooms yield: room occupancy multiplied by the average achieved room rate.

See www.pkf.co.uk for more information on PKF and UK hotel industry performance.