Increases in room rates for UK hoteliers

2nd March 2011, 10:33am

Hoteliers across the UK experienced a relatively slow month in terms of room occupancy, but increases in room rate allowed for positive rooms yield figures, according to preliminary monthly figures for January released by PKF Hotel Consultancy Services.

In London, room rate increased 8.3% from £104.41 last year to £113.09 this year. Room occupancy decreased 3.1% from 72.1% in 2010 to 70.0% this year. Overall, this meant a rooms yield increase of 5.0% from £75.36 to £79.12.

In the regions, room rate increased 2.2% from £57.60 in January last year, to £58.87 in January this year. Room occupancy remained flat at 53.8% while rooms yield was up 2.2% to £31.69.

Individual cities, such as Cardiff and Leeds, followed a similar pattern with room occupancy declining, but room rate increasing. In Cardiff, room rate was up 5.3% from £58.43 last January to £61.50 this January. Room occupancy was down 4.7% from 56.5% to 53.9% while rooms yield was up 0.4% to £33.14.

Robert Barnard, partner for Hotel Consultancy Services at PKF, commented: "January is often a slow month following the Christmas rush and occupancy figures usually run at a lower percentage. The declines in room occupancy – mostly across the board – however, are slightly concerning for the industry as it looks towards 2011.
 
"Having said that, room rate increases did counter balance the falls in room occupancy so it was not a bad month for the UK's hoteliers. The government's austerity drive and the cuts to the public sector are likely to have an impact on the industry as we go through 2011, but there are also events such as the Royal wedding in April which will provide a boost for the industry so I do not predict too much of a struggle for the year to come."

Related Articles:

• 31 Jan 2011 - Snow disruption affects UK hoteliers, says PKF
• 29 Sep 2010 - UK hoteliers achieve healthy August, says PKF
• 22 Mar 2010 - London hoteliers achieve healthy growth
• 22 Feb 2010 - Snowfall in January affects many UK hoteliers
• 25 Jan 2010 - Hoteliers cash in on December festivities
• 26 Oct 2009 - London hoteliers continue to fill rooms
• 16 Dec 2008 - UK hoteliers continue to feel pinch
• 01 Sep 2008 - Steady growth for London hoteliers
• 09 Jul 2008 - Hoteliers report steady growth
• 18 Apr 2008 - London hotels report 5.8% rise in room rates
• 01 Feb 2008 - Healthy December for UK hoteliers

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