 Hoteliers enjoy steady February and March
26 April 2011: Hoteliers across the UK experienced a steady month in February and preliminary figures for March suggest a similar pattern, according to figures released today by PKF Hotel Consultancy Services.
In London, although room occupancy was down in February, by 4.7% from 79.3% in 2010 to 75.6% in 2011, rooms yield increased by 1.7% year on year. This can be attributed to an increase of 6.7% in room rate from £120.28 in 2010 to £128.31 in 2011. Preliminary data for March suggests the capital is heading for a stronger month. Room rate increased 7.4% from £114.53 to £122.98; room occupancy increased 1.5% to 81.8% and rooms yield increased by 9.0% from £92.35 in 2010 to £100.62 in 2011.
In the regions, final figures for February show room rate increasing 1.8% from £59.81 in 2010 to £60.91 this year. Room occupancy did decrease slightly from 65.3% last year to 64.5% this year, but rooms yield was up overall from £39.09 last year to £39.27 this year, an increase of 0.5%. Preliminary figures for March show that room rate is up 1.4% to £61.39, room occupancy stayed flat at 67.0% and rooms yield has increased by 1.3% to £41.13.
March figures for individual cities in the regions, show a relatively mixed picture. Rooms yield has mostly increased, but in some cities this was down to a rate increase, while in others an occupancy increase. For example, in Leeds, room rate declined 0.3% to £62.84, but room occupancy was up 0.8% to 74.6%. This meant rooms yield increased overall by 0.5% to £46.89. Meanwhile in Birmingham, room rate was up 4.2% to £62.47, room occupancy was down 4.0% to 71.7% and rooms yield was up 0.1% to £44.76.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “These are healthy figures for the industry and I expect, particularly for London, that the figures will remain strong over the next few months with the Royal Wedding at the end of April expected to bring in additional visitors to the capital.
“However, the rest of the year is likely to be less settled as the industry continues to be impacted by broader worldwide issues. London should be less affected especially as it benefits from the build up to the Olympic Games and the Champions League Final. The regions however, will more likely have a slower recovery and be dependent on growth in the MICE and corporate markets.”
Preliminary data for March 2011
|
| UK Regional hotels | 847 | 847 |  |
| Average daily room rate per occupied room | £61.39 | £60.55 | 1.4 |
| Average daily room occupancy | 67.0% | 67.0% | 0.0 |
| Average daily rooms yield per available room | £41.13 | £40.62 | 1.3 |
| Approximate number of rooms per day | 95,750 | 95,900 | |
| London hotels | 158 | 158 | |
| Average daily room rate per occupied room | £122.98 | £114.53 | 7.4 |
| Average daily room occupancy | 81.8% | 80.6% | 1.5 |
| Average daily rooms yield per available room | £100.62 | £92.35 | 9.0 |
| Approximate number of rooms per day | 36,450 | 36,200 | |
– 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 February 2011
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| UK Regional hotels | 872 | 872 | |
| Average daily room rate per occupied room | £60.91 | £59.81 | 1.8 |
| Average daily room occupancy | 64.5% | 65.3% | -1.4 |
| Average daily rooms yield per available room | £39.27 | £39.09 | 0.5 |
| Approximate number of rooms per day | 93,000 | 93,200 | |
| London hotels | 188 | 188 | |
| Average daily room rate per occupied room | £128.31 | £120.28 | 6.7 |
| Average daily room occupancy | 75.6% | 79.3% | -4.7 |
| Average daily rooms yield per available room | £97.04 | £95.44 | 1.7 |
| Approximate number of rooms per day | 37,850 | 37,650 | |
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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