 A happier month for some UK hoteliers, but many still feel the strain
25 January 2010: Hoteliers in London and Edinburgh were able to cash in on December festivities, but many of the rest of the UK’s hotels were not so lucky, according to preliminary monthly figures for December released today by PKF Hotel Consultancy Services.
In London, Christmas and New Year festivities meant occupancy increased year on year by 5.3%, from 72.8% in 2008 to 76.7% in 2009. Room rate rose by 1.9% from £115.11 in 2008 to £117.27 this year, while rooms yield was up 7.3% from £83.82 to £89.93.
Looking at the year to date, 2009 was a difficult year for the capital, but occupancy did manage to increase in comparison to the 12 months of 2008, increasing 1.2% from 80.1% in 2008 to 81.2% in 2009. Overall, rooms yield was down however, from £97.11 to £92.91 – a fall of 4.3%.
In the regions, occupancy was able to creep up in December by 0.1% from 59.0% last year to 59.1% this year. Room rate fell year on year, from £64.39 last year to £60.24 this year and this meant rooms yield was down 6.3% on December last year.
For the year overall, it was tough for regional UK hoteliers. Occupancy was down 5.1% on the 2008 figures, from 71.0% to 67.4%. Room rate was down 7.8% from £68.85 to £63.47 and rooms yield was down 12.6% on the 2008 figures, from £48.91 to £42.77.
Cardiff, Leeds and Manchester were able to achieve increases in occupancy in December, but their room rates all decreased year on year which meant rooms yield was down. It is also likely that the occupancy increases simply reflected the recovery from decreases in December 2008.
Edinburgh hoteliers had a good year and month however. In December, occupancy was up 9.2% on December 2008 from 61.9% to 67.7%. Room rate fell 2.1%, but rooms yield was up 6.9% to £53.82.
Year to date figures show Edinburgh’s occupancy is up 2.2% to 75.3% on 2008. Rooms yield was down for the year, but this is not surprising given the economic climate and the necessary reductions hoteliers have made to room rates.
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 | Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “2009 was a challenging year for UK hoteliers. The December figures show that the market is still tough for many UK hoteliers and the increases that were gained should in part be put down to the recovery from the badly affected 2008 December figures.
The global and UK economies are not out of the woods yet, but over the course of 2010 I would hope to see trade pick up in response to a gradual recovery in global travel as the year develops.
The extreme weather over January will affect the figures for this month, although this may be for the positive as those stranded may have had no option but to check in to a hotel for the night.” |
Preliminary data for December
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| UK Regional hotels (735) | | | |
| Average daily room rate per occupied room | £60.24 | £64.39 | -6.5 |
| Average daily room occupancy | 59.1% | 59% | 0.1 |
| Average daily rooms yield per available room | £35.61 | £38.02 | -6.3 |
| Approximate number of rooms per day | 83,150 | 82,700 | |
| London hotels (152) | | | |
| Average daily room rate per occupied room | £117.27 | £115.11 | 1.9 |
| Average daily room occupancy | 76.7% | 72.8% | 5.3 |
| Average daily rooms yield per available room | £89.93 | £83.82 | 7.3 |
| Approximate number of rooms per day | 32,800 | 32,400 | |
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For further information or to speak to Robert, please contact:
Jane Murray, PR Executive, 020 7065 0135, jane.murray@uk.pkf.com
Notes to Editors:
- PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk.
- PKF (UK) LLP is a member firm of the PKF International Limited network of legally independent firms. The PKF International Limited network has around 15,000 people operating in 120 countries around the world.
- PKF (UK) LLP has been providing hotel consultancy services since the early 1970s and, in that time, has undertaken thousands of assignments throughout Europe, the Middle East and Africa and further a field. Services include: market evaluation and financial feasibility studies; operational and profit improvement reviews; asset management; business valuations; international property services; corporate strategy and planning; litigation support. PKF’s web site features regular articles from the firm’s hotel consultancy services experts on industry topics – the address is www.pkf.co.uk/hotelcons.
- PKF (UK) LLP’s hotel trends surveys feature a broad range of hotels across the country although mainly in the 3 – 4 star categories and featuring rather more chain operated hotels than those operated independently. While there are a fair number of hotels in country and rural areas, there is a predominance of hotels in towns and cities. In London, supply featured is mainly in the 3 –5 star categories.
5. Final data for November 2009
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| UK Regional hotels | 794 | 794 | |
| Average daily room rate per occupied room | £64.95 | £70.01 | -7.2 |
| Average daily room occupancy | 67.3% | 69.3% | -2.8 |
| Average daily rooms yield per available room | £43.73 | £48.52 | -9.9 |
| Approximate number of rooms per day | 59,400 | 89,200 | |
| London hotels | 203 | 203 | |
| Average daily room rate per occupied room | £139.36 | £135.06 | 3.2 |
| Average daily room occupancy | 85.7% | 80.0% | 7.1 |
| Average daily rooms yield per available room | £119.47 | £108.12 | 10.5 |
| Approximate number of rooms per day | 42,250 | 42,050 | |
Definition of the key terms used in the surveys table are given below:
Room occupancy: the ratio of total occupied rooms to total available rooms
Average achieved room rate (AARR): rooms revenue divided by the total number of guest rooms occupied during the year.
Rooms yield: room occupancy multiplied by the average achieved room rate (also known as RevPar).
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