Flaming June hots up UK hotels' performance figures

The yield on London hotel rooms was 11.5% higher than in 2005 rising from £96.02 to £107.08. This was achieved by a combination of a 5.0% increase in the daily room rate from £117.66 in 2006 to £123.50 and a 6.2% increase in occupancy to 86.7%.

The yield on London hotel rooms was 11.5% higher than in 2005 rising from £96.02 to £107.08. This was achieved by a combination of a 5.0% increase in the daily room rate from £117.66 in 2006 to £123.50 and a 6.2% increase in occupancy to 86.7%.

Visitors from outside the traditional domestic, European, USA and Japanese markets now account for nearly one in four London hotel guests (24.2%) – a 15.8% increase on June 2005 figures.

Performance in the regions was less spectacular but the three main performance indicators of rate, occupancy and yield with percentage rises of 1.0%, 1.3% and 2.3% respectively all contributed towards making June 2006 the best since 2000.

	Robert Barnard, partner for hotel consultancy services at PKF, said: “The June figures continue to reflect the strength and dynamism of the UK hotel market as a whole and the dominance of London as a world-leading centre of business and tourism

”A year on from the tragedy of the London bombings after which hotel occupancy figures plunged, the comeback clearly demonstrates both the resilience of hoteliers and the timeless appeal of the capital as a global destination.”

Visitors from outside the traditional domestic, European, USA and Japanese markets now account for nearly one in four London hotel guests (24.2%) – a 15.8% increase on June 2005 figures.

Performance in the regions was less spectacular but the three main performance indicators of rate, occupancy and yield with percentage rises of 1.0%, 1.3% and 2.3% respectively all contributed towards making June 2006 the best since 2000.

Robert Barnard, partner for hotel consultancy services at PKF, said: “The June figures continue to reflect the strength and dynamism of the UK hotel market as a whole and the dominance of London as a world-leading centre of business and tourism.

”A year on from the tragedy of the London bombings after which hotel occupancy figures plunged, the comeback clearly demonstrates both the resilience of hoteliers and the timeless appeal of the capital as a global destination.”

Preliminary data for June 2006

Rooms department	2006	2005	% Change
UK Regionals Hotel (537)
Average daily room rate per occupied room	£71.34	£70.62	1.0
Average daily room occupancy	76.5%	75.5%	1.3
Average daily rooms yield per available room	£54.59	£53.35	2.3
Approximate number of rooms per day	72,650	73,300
London hotels (178)
Average daily room rate per occupied room	£123.50	£117.66	5.0
Average daily room occupancy	86.7%	81.65%	6.2
Average daily rooms yield per available room	£107.08	£96.02	11.5
Approximate number of rooms per day	38,900	38,850

For further information

Christiane Morris PR consultant, PKF 020 7065 0141

Notes to Editors

1. PKF is one of the UK's leading firm's of accountants and business advisors and specialises in advising the management of developing private and public businesses. The firm has more than 1,500 partners and staff operating in over 25 offices around the country. Principal services include assurance and advisory; consultancy; corporate finance; corporate recovery and insolvency; forensic; and taxation. The firm has particular expertise in advising sectors such as small and medium sized companies; charities; hotels and leisure; medical; professional partnerships; public sector; and technology. The firm’s web site is www.pkf.co.uk.

2. PKF is a member of PKF International, which has more 12,800 people operating in over 100 countries around the world.

3. PKF 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.

4. PKF’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 May 2006

   Rooms department	2006	2005	% Change
   UK Regionals Hotel
   Average daily room rate per occupied room	£69.76	£68.53	1.8
   Average daily room occupancy	74.9%	72.0%	4.1
   Average daily rooms yield per available room	£52.27	£49.34	5.9
   Approximate number of rooms per day	85,850	84,200
   London hotels
   Average daily room rate per occupied room	£116.61	£108.51	7.5
   Average daily room occupancy	82.4%	76.9%	7.1
   Average daily rooms yield per available room	£96.05	£83.45	15.1
   Approximate number of rooms per day	42,550	42,150

6. A PKF Hotline provides free advice to anyone facing financial difficulties. The hotline – 0845 1 22 00 44 – is manned Monday to Friday during office hours. Callers will be automatically directed to a local expert. All calls are charged at local rates.

7. 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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