 Snow disruption affects UK hoteliers both positively and negatively
31 January 2011: The heavy snow experienced across much of the UK in December appears to have adversely affected occupancy levels for many hotels across the country. However, increases in room rate meant yield was mostly protected and the airport hotels experienced increases across the board, according to preliminary monthly figures released today by PKF Hotel Consultancy Services.
In London, room rate increased by 9.9% from £123.25 in 2009 to £135.42 in 2010. Occupancy was down however, by 2.8%, from 76.7% to 74.6%. Overall, rooms yield managed an increase of 6.8% from £94.57 last year to £100.98 this year.
In the regions, room rate was up 2.6% to £61.29, but occupancy was down 2.5% from 58.9% in December 2009 to 57.4% this December. Overall, this meant rooms yield was up 0.1% from £35.19 in 2009 to £35.21 this year.
In Edinburgh, where the snow was particularly bad in December, hoteliers had a rough ride. Occupancy was down 12.7% from 67.8% last year to 59.2% this year – most likely because visitors could not get to into the city while residents had little choice but to stay at home and indoors for a large part of the month. Room rate did increase by 1.8% to £82.74, but rooms yield was down by 11.1% to £49.00.
The snow disruption had the opposite effect for the airport hotels at Gatwick and Heathrow where stranded passengers were desperate for rooms. At Gatwick, occupancy was up 15.5% to 73.6% compared to 63.7% in December last year. Room rate was also up, by 14.3% to £69.19 and rooms yield therefore jumped 32.1% to £50.93.
At Heathrow, the picture was similar with room rate up 13.8% to £75.97, occupancy up 10.6% to 79.5% and rooms yield up 25.9% to £60.42.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “December proved that heavy snowfall can be both good and bad for hoteliers. The airport hotels had a good month due to the closure of runways, while cities like Edinburgh, had a bad month due to peoples’ inability to visit the city.
“Overall, the figures for both London and the regions were not dramatically down, but occupancy did take a slight hit. Looking at the year to date figures for 2010, London had a strong recovery year with rooms yield increasing by 12.1% to £109.02. In the regions, the figures were also positive by the end with a 1.5% increase in yield to £42.86, but recovery here was slower than the capital.”
Preliminary data for December 2010
|
| UK Regional hotels | 841 | 841 |  |
| Average daily room rate per occupied room | £61.29 | £59.75 | 2.6 |
| Average daily room occupancy | 57.4% | 58.9% | -2.5 |
| Average daily rooms yield per available room | £35.21 | £35.19 | 0.1 |
| Approximate number of rooms per day | 96,750 | 96,500 | |
| London hotels | 188 | 188 | |
| Average daily room rate per occupied room | £135.42 | £123.25 | 9.9 |
| Average daily room occupancy | 74.6% | 76.7% | -2.8 |
| Average daily rooms yield per available room | £100.98 | £94.57 | 6.8 |
| Approximate number of rooms per day | 41,400 | 41,600 | |
– 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 November 2010
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| UK Regional hotels | 836 | 836 | |
| Average daily room rate per occupied room | £64.11 | £63.50 | 1.0 |
| Average daily room occupancy | 69.5% | 66.8% | 4.0 |
| Average daily rooms yield per available room | £44.56 | £42.45 | 5.0 |
| Approximate number of rooms per day | 92,750 | 92,850 | |
| London hotels | 190 | 190 | |
| Average daily room rate per occupied room | £147.31 | £133.30 | 10.5 |
| Average daily room occupancy | 86.0% | 85.7% | 0.3 |
| Average daily rooms yield per available room | £126.66 | £114.32 | 10.8 |
| Approximate number of rooms per day | 40,000 | 40,400 | |
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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