 Wintry weather does not affect UK hotel growth
25 February 2008: Hotels across the UK achieved steady growth in January despite the wintry conditions, although this was mainly due to increases in room rates, according to the preliminary monthly figures for January released today by PKF Hotel Consultancy Services.
London hotels had a good month achieving 3.7% growth in rooms yield from £86.18 last year to £89.40 this year. This was driven by an increase of 5.3% in room rates as occupancy dropped slightly from 72.0% last year to 71.0% this year.
In the regions, there was a 3.4% increase in the average room rate from £69.97 last year to £72.34 this year. As in London occupancy saw a small dip, down 1.7% on 2007, but overall there was a 1.6% growth in rooms yield from £42.86 to £43.55.
Liverpool’s tenure as European Capital of Culture in 2008 appears to have kick started the year for its hotels. The city saw a 2.0% growth in rooms yield in January, from £45.65 last year to £46.55 this year. This was down to a 1.8% growth in room rate and a 0.2% growth in occupancy.
Leeds also had a good January and bucked the trend seen in the rest of the country as it was growth in occupancy that drove the figures up. Hotels saw a 4.2% rise in occupancy and an overall 3.8% rise in rooms yield, from £43.17 to £44.82.
On the flip side, Birmingham dropped 4.2% in rooms yield on last year and Cardiff was more stark with a 7.5% drop. However, with other cities on the rise, the overall regional figures remain positive given the economic conditions.
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 | Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “January was a good month for hoteliers with overall growth seen across the whole of the UK.
“Despite a slight dip in occupancy in both London and the regions, average room rates and average rooms yields have continued to grow.” |
“Equally, the UK regional hotels have had a good year and the Manchester and Birmingham figures illustrate that, again, the December figures rounded the year off strongly. Cardiff did not have such a good month and the opening of the new Wembley stadium earlier in the year is likely to be the biggest factor affecting the city’s numbers.
“However, overall for the year Cardiff, and the regions as a whole, have recorded healthy growth – Cardiff achieved a 3.4% rise in rooms yield for the whole of 2007, while the regions as whole achieved a 3.7% rise in rooms yield.“
Preliminary data for January 2008
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| UK Regional hotels (532) | | | |
| Average daily room rate per occupied room | £72.34 | £69.97 | 3.4 |
| Average daily room occupancy | 60.2% | 61.2% | -0.7 |
| Average daily rooms yield per available room | £43.55 | £42.86 | 1.6 |
| Approximate number of rooms per day | 77,500 | 76,050 | |
| London hotels (185) | | | |
| Average daily room rate per occupied room | £125.92 | £119.55 | 5.3 |
| Average daily room occupancy | 71.0% | 72.0% | -1.0 |
| Average daily rooms yield per available room | £89.40 | £86.18 | 3.7 |
| Approximate number of rooms per day | 41,250 | 41,300 | |
-ends-
For further media information, please contact:
Jason Gowar, PR Manager, 020 7065 0573, jason.gowar@uk.pkf.com
Jane Murray, PR Executive, 020 7065 0135, jane.murray@uk.pkf.com
For general enquiries please contact our switchboard on 020 7065 0000
Notes to Editors:
- PKF is a leading firm of accountants and business advisers with more than 1,800 partners and staff operating in 23 offices in the UK mainland firm, 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 of PKF International which is an association of legally independent firms with more than 14,650 people operating in 119 countries around the world.
- PKF 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’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 December 2007
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| UK Regional hotels | 595 | 595 | |
| Average daily room rate per occupied room | £70.33 | £68.13 | 3.2 |
| Average daily room occupancy | 63.2% | 63.2% | 0.0 |
| Average daily rooms yield per available room | £44.43 | £43.06 | 3.2 |
| Approximate number of rooms per day | 86,800 | 86,850 | |
| London hotels | 201 | 201 | |
| Average daily room rate per occupied room | £127.47 | £119.79 | 6.4 |
| Average daily room occupancy | 73.5% | 73.4% | 0.1 |
| Average daily rooms yield per available room | £93.74 | £87.99 | 6.5 |
| Approximate number of rooms per day | 43,250 | 43,250 | |
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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