 London hotel performance dented by August riots
but rest of the country powers ahead
19 September 2011: London hotels reported a drop in occupancy during August, according to preliminary hotel figures released today by PKF Hotel Consultancy Services.
Occupancy in London decreased by 3.2% compared with the same month last year – the first decline in the capital since February. However, a 9.5% rise in room rate meant that room yield still increased by 5.9% to £101.66 from £96.02 in August 2010.
Hoteliers in the regions enjoyed one of their strongest months this year, with a 2.4% increase in occupancy and a 2.5% rise in room rate resulting in rooms yield growth of 4.9% from £49.41 to £51.82. Of the major cities, Manchester and Edinburgh performed particularly well, posting year-on-year rooms yield rises of 8.8% and 10.5% respectively.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented: “The riots appear to have had a negative impact on London hotels as visitors decided to stay away or shorten their breaks in the capital. Although occupancy remained above the important 80% benchmark, the decline in guest numbers bucks the trend seen earlier in the year and only skilful revenue management enabled hoteliers to avoid a drop in yields during their peak season. With London now projecting a much more positive image again, we are optimistic that the challenges have been short term in nature and that normal service will be resumed in September."
“August is an enormously important month for the hospitality sector, so it is encouraging to note that hotels in the rest of the country posted some of their best results to date last month. The data suggest that, despite the dismal weather, families decided to spend the summer season in the UK as they continue to grapple with an uncertain economic outlook and unfavourable exchange rates. The popularity of the ‘staycation’ has endured for another year and, given the lack of any meaningful economic recovery, it is hard to see anything but a continuation of this trend in summer 2012.”
ENDS
For further information, please contact: Andy Konieczko, PR Manager, 020 7065 0537, andrew.konieczko@uk.pkf.com
Preliminary data for August 2011
|
| UK Regional hotels | 460 | 460 |  |
| Average daily room rate per occupied room | £68.50 | £66.86 | 2.5% |
| Average daily room occupancy | 75.7% | 73.9% | 2.4% |
| Average daily rooms yield per available room | £51.82 | £49.41 | 4.9% |
| Approximate number of rooms per day | 68,800 | 68,900 | |
| London hotels | 90 | 90 | |
| Average daily room rate per occupied room | £125.65 | £114.78 | 9.5% |
| Average daily room occupancy | 80.9% | 83.6% | -3.2% |
| Average daily rooms yield per available room | £101.66 | £96.02 | 5.9% |
| Approximate number of rooms per day | 19,250 | 19,150 | |
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
|
| UK Regional hotels | | | |
| Average daily room rate per occupied room | £61.94 | £62.48 | -0.9% |
| Average daily occupancy | 80.2% | 77.5% | 3.5% |
| Average daily rooms yield per available room | £49.68 | £48.44 | 2.6% |
| Approximate number of rooms per day | 102,950 | 102,800 | |
| London hotels | | | |
| Average daily room rate per occupied room | £159.37 | £149.63 | 6.5% |
| Average daily room occupancy | 92.3% | 92.1% | 0.2% |
| Average daily rooms yield per available room | £147.13 | £137.86 | 6.7% |
| Approximate number of rooms per day | 43,000 | 43,050 | |
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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