 Economic woes dampen hotel performance
22 December 2011: Hotels across the country experienced a slowdown in November but just about maintained the upper hand in their battle against the economic headwinds, according to preliminary hotel figures released today by PKF Hotel Consultancy Services.
Rooms yield in London remained flat at around £117.50, as a 2.0% increase in room rate to £139.20 from £136.48 in November 2010 was cancelled out by a corresponding decline in occupancy from 86.0% a year ago to 84.4%.
In the regions, a 0.9% rise in occupancy from 69.7% to 70.4% was more than offset by a 3.1% drop in room rate from £62.77 to £60.85. The result was a 2.2% fall in rooms yield to £42.83, compared with £43.78 twelve months ago.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented: “These figures are unlikely to bring much festive cheer to the sector. However, when viewed against a backdrop of plunging business and consumer confidence, lacklustre retail sales for much of the last quarter and the ongoing concerns about the future of the euro, these results suggest that hoteliers are battling the storms more successfully than many other parts of the economy.
“Looking at the positives, it is encouraging to note that London hotels have successfully managed room rates whilst maintaining occupancy at above 80%. Occupancy in the regions has increased slightly, albeit at the expense of room rate.
“Let’s be honest: the sector is facing a challenging operating environment that is unlikely to improve significantly anytime in the near future. However, hotel managers appear to have learnt the lessons from 2008-9 and are much better equipped to respond effectively this time around.”
Ends
For further information, please contact: Andy Konieczko, 020 7065 0537, andrew.konieczko@uk.pkf.com
Preliminary data for November 2011
| Rooms department | 2011 | 2010 | % change |
| UK Regional hotels | 793 |  | |
| Average daily room rate per occupied room | £60.85 | £62.77 | -3.1% |
| Average daily room occupancy | 70.4% | 69.7% | 0.9% |
| Average daily rooms yield per available room | £42.83 | £43.78 | -2.2% |
| Approximate number of rooms per day | 82,600 | | |
| London hotels | 160 | | |
| Average daily room rate per occupied room | £139.20 | £136.48 | 2.0% |
| Average daily room occupancy | 84.4% | 86.0% | -1.9% |
| Average daily rooms yield per available room | £117.52 | £117.50 | 0.0% |
| Approximate number of rooms per day | 34,400 | | |
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 (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.
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 October 2011
| Rooms department | 2011 | 2010 | % change |
| UK Regional hotels | | | |
| Average daily room rate per occupied room | £60.78 | £62.07 | -2.1% |
| Average daily occupancy | 74.8% | 73.6% | 1.6% |
| Average daily rooms yield per available room | £45.45 | £45.72 | -0.6% |
| Approximate number of rooms per day | 102,850 | | |
| London hotels | | | |
| Average daily room rate per occupied room | £142.07 | £138.25 | 2.8% |
| Average daily room occupancy | 86.9% | 88.8% | -2.2% |
| Average daily rooms yield per available room | £123.46 | £122.81 | 0.5% |
| Approximate number of rooms per day | 42,700 | | |
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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