 UK hoteliers survive difficult 2009
01 April 2010: UK hoteliers survived a difficult year in 2009 where large reductions in average achieved room rate (AARR) reflected the state of the UK economy, according to Hotel Britain 2010, PKF’s definitive guide to the performance and prospects of the UK hotel industry.
The report reviews the performance of 559 hotels representing over 93,449 rooms across both London and the regions.
 |
 | According to Robert Barnard, Hotel Consultancy Services Partner at PKF Accountants & business advisers, the global economic downturn and UK recession created a difficult backdrop for the industry in 2009. It was this, coupled with a year of largely bad weather and the apprehension of a swine flu pandemic that were key influencers for hoteliers in 2009.
Robert said, “The UK hotel industry was braced for another difficult year at the beginning of 2009 as the global economic downturn continued to affect both business and leisure travellers. |
“This largely played out to be true, particularly when it came to AARR where hoteliers had no choice but to reduce their rates in order to attract visitors. However, despite the mostly negative results for 2009, over the last five years UK hotels have achieved a positive compound annual growth rate (CAGR) in rooms yield (also known as revenue per available room or REVpar), up 2.2%, demonstrating the strength of the industry in recent times.
“London remains resilient, although this was the first year for the capital to report a decline in rooms yield. Overall for 2009, occupancy was up 1.1% on 2008 to 81.1%. The fall in rooms yield, by 4.7% to £108.74, was as a result of the 5.7% drop in AARR to £134.09. However it should be noted that this is still a relatively high AARR.
“Looking towards 2010, there is still a high level of uncertainty within the industry as economic recovery is expected to be relatively slow plus it is an election year, the result of which is very close to call. London, as a top business and leisure destination continues to attract visitors, especially as the pound remains relatively weak against the euro and the US dollar.
“For the same reason, there is a certain amount of hope in the regions, as it means many UK families are likely to decide to holiday in the UK again this year.”
2009 Hotel Performance
UK hotels saw rooms yield fall 8.2% from £75.97 in 2008 to £69.73 in 2009. Occupancy was also down – it dropped 2.2% to 72.9% – while AARR decreased by 6.2% to £95.68 across the UK as a whole.
In London, AARR decreased year on year by 5.7% to £134.09, occupancy was up 1.1% to 81.1% and rooms yield was down 4.7% to £108.74.
Hotels in the regions were hit hard and rooms yield was down 12.2% from £55.16 in 2008 to £48.42 in 2009. This was a result of an 8.4% drop in AARR to £70.80 and a 4.2% fall in occupancy from 71.3% in 2008 to 68.4% in 2009.
The ‘staycation’ trend did boost figures for some regional destinations as UK tourists chose to holiday in their home country. Visitor numbers for Blackpool were at their highest for 20 years over the 2009 Easter Bank Holiday weekend. Year on year, occupancy was up 9.5% from 67.1% in 2008 to 73.4% in 2009. AARR did fall – by 5.2% to £64.64 – but the high levels of visitors still meant rooms yield was up 3.8% to £47.47 in 2009.
In Windermere, occupancy was up 1.8% to 64.0%; AARR was down 0.5% to £85.78 and rooms yield was up 1.3% to £54.92.
Hotel Britain 2010 costs £300 via PKF’s website at www.pkf.co.uk/hotelbritain
-ends-
For further information or to arrange an interview with Robert Barnard:
Jane Murray, PR – 020 7065 0135
Notes to Editors
- Hotel Britain is compiled from the responses of a representative cross section of 559 hotels representing 93,449 rooms. 152 of these hotels are located in the capital and 407 are spread across the rest of the country. It is the most comprehensive guide to the performance and prospects of Britain’s hotel industry.
- 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
- Definition of the key terms 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).
- PKF 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, 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 network of legally independent firms. The PKF International Limited network has around 17,600 people operating in 120 countries around the world.
|