 Strong hotel performance in May but challenges remain
22 June 2011: Hotels across the country posted a healthy performance in May, although the sector’s recovery remains fragile outside London.
According to preliminary May figures released today by PKF Hotel Consultancy Services, rooms yield in the capital showed a double digit increase for the second consecutive month, rising by 16.5% to £118.24. This was driven primarily by a 14.8% increase in room rate to £138.50 alongside a 1.5% rise in occupancy to 85.4%.
All hotel classes in the capital recorded an increase in rooms yield, with the luxury hotel segment proving particularly buoyant.
Hotels in the rest of the country reported a 1.3% increase in rooms yield to £45.02. This was the result of a 2.1% increase in occupancy to 74.0%, which more than offset a 0.8% decline in room rate to £60.85.
Hotels in Cardiff, Edinburgh and Manchester were among the best performers, posting rooms yield growth of 17.8%, 10.1% and 8.9% respectively.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented “This is the most positive set of results so far this year, particularly for London. Hotels in the capital have seen rooms yield rise sharply for the second month in a row and the fact that all hotel classes, from basic tourist accommodation through to high end deluxe operations posted strong results demonstrates the resilience of London as a hotel destination.
That said, hoteliers should avoid cracking open the champagne just yet. Significant challenges remain - particularly for operators outside London that are reliant on the challenging MICE (meetings, incentives, conferences and exhibitions) and corporate markets - and skilful revenue management will be required to ensure that this nascent recovery isn’t snuffed out in the coming months.”
ENDS
For further information, please contact: Andy Konieczko, PR Manager, 020 7065 0537, andrew.konieczko@uk.pkf.com
Preliminary data for May 2011
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| UK Regional hotels | 742 | 742 |  |
| Average daily room rate per occupied room | £60.85 | £61.36 | -0.8% |
| Average daily room occupancy | 74.0% | 72.4% | 2.1% |
| Average daily rooms yield per available room | £45.02 | £44.46 | 1.3% |
| Approximate number of rooms per day | 78,900 | 79,150 | |
| London hotels | 142 | 142 | |
| Average daily room rate per occupied room | £138.50 | £120.65 | 14.8% |
| Average daily room occupancy | 85.4% | 84.1% | 1.5% |
| Average daily rooms yield per available room | £118.24 | £101.52 | 16.5% |
| Approximate number of rooms per day | 30,000 | 29,850 | |
Notes to Editors:
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
PKF (UK) LLP is a member firm of the PKF International Limited (PKFI) network of legally independent member firms. The PKFI member firms have around 2,200 partners and more than 21,000 staff in around 125 countries.
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
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.
Final data for April 2011
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| UK Regional hotels | 868 | 868 | |
| Average daily room rate per occupied room | £56.85 | £58.48 | -2.8% |
| Average daily occupancy | 69.4% | 67.7% | 2.4% |
| Average daily rooms yield per available room | £39.44 | £39.63 | -0.5% |
| Approximate number of rooms per day | 101,000 | 100,900 | |
| London hotels | 190 | 190 | |
| Average daily room rate per occupied room | £130.33 | £119.42 | 9.1% |
| Average daily room occupancy | 80.3% | 77.1% | 4.2% |
| Average daily rooms yield per available room | £104.70 | £92.11 | 13.7% |
| Approximate number of rooms per day | 41,700 | 41,600 | |
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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