 Hotels beat the gloom and enjoy a strong September but
uncertain times are on the way
25 October 2011: Hotels across the country posted a strong set of results in September, according to preliminary hotel figures released today by PKF Hotel Consultancy Services.
Rooms yield in London increased by a healthy 6.8% to £139.08, compared with £130.17 in September 2010, thanks to a 7.5% rise in room rate to £156.04. Occupancy dropped by 0.6% from 89.6% a year ago to 89.1% - the second consecutive monthly decline in the capital since the August riots.
Hoteliers in the regions saw rooms yield grow by 2.1% from £50.60 to £51.66, with a 2.2% increase in occupancy more than offsetting a 0.1% decline in room rate from £64.76 to £64.71. Of the major cities, Liverpool and Edinburgh performed particularly well, posting year-on-year rooms yield rises of 6.6% and 4.7% respectively.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented: “With much of the economy seemingly struggling to keep its head above water, another impressive performance from the hotel sector is undoubtedly good news. Although London remains the engine of growth, it is encouraging to see that the industry is not overly reliant on any single region and that growth appears to be increasingly broad based."
“That said, hotels cannot keep successfully battling the economic headwinds indefinitely. During the final quarter of the year, the industry will need to assess how best to respond to growing concerns about the health of the economy, the uncertain future of the Eurozone, and declining consumer and business confidence both at home and abroad. Skilful revenue management is likely to be essential if hotels are to maintain the same high level of performance that we’ve seen thus far."
“The second consecutive decline in occupancy at London hotels suggests that hoteliers will be watching guest numbers for October with interest, but I doubt that any alarm bells will be ringing whilst occupancy remains close to 90%.”
ENDS
For further information, please contact: Andy Konieczko, PR Manager, 020 7065 0537, andrew.konieczko@uk.pkf.com
Preliminary data for September 2011
| Rooms department | 2011 | 2010 | % change |
| UK Regional hotels | 851 | 851 |  |
| Average daily room rate per occupied room | £64.71 | £64.76 | -0.1% |
| Average daily room occupancy | 79.8% | 78.1% | 2.2% |
| Average daily rooms yield per available room | £51.66 | £50.60 | 2.1% |
| Approximate number of rooms per day | 93,900 | 94,100 | |
| London hotels | 115 | 115 | |
| Average daily room rate per occupied room | £156.04 | £145.20 | 7.5% |
| Average daily room occupancy | 89.1% | 89.6% | -0.6% |
| Average daily rooms yield per available room | £139.08 | £130.17 | 6.8% |
| Approximate number of rooms per day. | 23,000 | 23,000 | |
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 July 2011
| Rooms department | 2011 | 2010 | % change |
| UK Regional hotels | | | |
| Average daily room rate per occupied room | £61.30 | £61.16 | 0.2% |
| Average daily occupancy | 76.5% | 74.0% | 3.4% |
| Average daily rooms yield per available room | £46.91 | £45.26 | 3.6% |
| Approximate number of rooms per day | 99,650 | 99,650 | |
| London hotels | | | |
| Average daily room rate per occupied room | £114.46 | £110.16 | 3.9% |
| Average daily room occupancy | 82.1% | 82.2% | -0.1% |
| Average daily rooms yield per available room | £93.97 | £90.51 | 3.8% |
| Approximate number of rooms per day | 41,950 | 41,900 | |
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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