 Room rate increases push up rooms yield for UK hoteliers
02 March 2011: 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 today 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.
In Leeds, room rate was up 4.6% to £61.27, room occupancy was down 0.4% and rooms yield was up 4.2% to £37.32.
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."
Preliminary data for January 2011
|
| UK Regional hotels | 836 | 836 |  |
| Average daily room rate per occupied room | £58.87 | £57.60 | 2.2 |
| Average daily room occupancy | 53.8% | 53.8% | 0.0 |
| Average daily rooms yield per available room | £31.69 | £31.01 | 2.2 |
| Approximate number of rooms per day | 99,150 | 99,350 | |
| London hotels | 146 | 146 | |
| Average daily room rate per occupied room | £113.09 | £104.41 | 8.3 |
| Average daily room occupancy | 70.0% | 72.1% | -3.1 |
| Average daily rooms yield per available room | £79.12 | £75.39 | 5.0 |
| Approximate number of rooms per day | 31,800 | 31,900 | |
– 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 December2010
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| UK Regional hotels | 847 | 847 | |
| Average daily room rate per occupied room | £61.63 | £60.17 | 2.4 |
| Average daily room occupancy | 57.3% | 58.6% | -2.3 |
| Average daily rooms yield per available room | £35.32 | £35.30 | 0.1 |
| Approximate number of rooms per day | 96,900 | 97,700 | |
| London hotels | 189 | 189 | |
| Average daily room rate per occupied room | £135.38 | £123.22 | 9.9 |
| Average daily room occupancy | 74.6% | 76.7% | -2.8 |
| Average daily rooms yield per available room | £100.97 | £94.57 | 6.8 |
| Approximate number of rooms per day | 41,450 | 41,650 | |
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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