 Further strong figures for London hoteliers in November while the regions begin to stabilise
10 January 2011: November was another strong month for hoteliers in London with increases, compared to the same time last year, in room rate, room occupancy and rooms yield. The regions also had a steady month, according to final monthly figures released today by PKF Hotel Consultancy Services.
In London, room rate increased 10.5% from £133.54 in 2009 to £147.54 this year. Occupancy was up 0.3% from 85.8% in 2009 to 86.0% in 2010. Overall, rooms yield was up from £114.51 last year to £126.88 this year, an increase of 10.8%.
Regionally, hoteliers posted a mixed, but mostly positive bag of results. Overall this meant the figures were positive with increases in room rate, room occupancy and rooms yield. Occupancy increased 4.0% from 66.8% to 69.6%; room rate decreased by 0.9% from £63.16 to £63.74; rooms yield increased 5.0% from £42.24 to £44.34.
Of the main UK regional cities, there were no real differences with most posting small overall increases. Edinburgh did not fare quite so well however. Occupancy was down 1.6% to 74.1%, room rate was down 1.9% to 81.73% and rooms yield fell 3.4% to £60.56.
The Northern cities had good months. Manchester’s room occupancy was up 4.7% to 81.3%, room rate was up 2.8% to £81.58 and rooms yield was up 7.6% £66.32. In Leeds, occupancy was up 4.3% to 78.5%, room rate was down slightly by 1.0% to £65.26, but overall rooms yield was up 3.2% to £51.23.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “November appeared to be a generally steady month across the board which is great for the industry. The December figures could be more interesting as the majority of the snow disruption fell into this month. This can be both good and bad for hoteliers, with some losing out on bookings because travellers cannot get to their destination, while others benefit from stranded passengers looking for a bed for the night.
"Looking into 2011, I have mentioned previously that the government’s spending cuts are likely to impact regional hotels, but on the flip side, for London, the royal wedding could provide a welcome boost."
Final data for November 2010
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| UK Regional hotels |  | | |
| Average daily room rate per occupied room | £63.74 | £63.16 | 0.9 |
| Average daily room occupancy | 69.6% | 66.8% | 4.0 |
| Average daily rooms yield per available room | £44.34 | £42.24 | 5.0 |
| Approximate number of rooms per day | 92,150 | | |
| London hotels | | | |
| Average daily room rate per occupied room | £147.54 | £133.54 | 10.5 |
| Average daily room occupancy | 86.0% | 85.8% | 0.3 |
| Average daily rooms yield per available room | £126.88 | £114.51 | 10.8 |
| Approximate number of rooms per day | 39,900 | | |
– ends –
For further information or to speak to Robert, please contact:
Jane Murray, PR, 020 7065 0135, jane.murray@uk.pkf.com
Notes to Editors:
1. 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 in the 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
2. PKF (UK) LLP is a member firm of the PKF International Limited network of legally independent firms. The PKF International Limited network has around 17,600 people operating in 120 countries around the world.
3. 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
4. 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 October 2010
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| UK Regional hotels | | | |
| Average daily room rate per occupied room | £62.41 | £62.93 | -0.8 |
| Average daily room occupancy | 73.8% | 71.1% | 3.8 |
| Average daily rooms yield per available room | £46.06 | £44.75 | 2.9 |
| Approximate number of rooms per day | 98,750 | | |
| London hotels | | | |
| Average daily room rate per occupied room | £139.30 | £123.71 | 12.6 |
| Average daily room occupancy | 88.8% | 87.0% | 2.1 |
| Average daily rooms yield per available room | £123.70 | £107.50 | 15.1 |
| Approximate number of rooms per day | 42,050 | | |
6. Definition of the key terms used in the surveys table are given below:
7. Room occupancy: the ratio of total occupied rooms to total available rooms
8. Average achieved room rate (AARR): rooms revenue divided by the total number of guest rooms occupied during the year.
9. Rooms yield: room occupancy multiplied by the average achieved room rate (also known as RevPar).
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