 London hoteliers enjoy boost from royal wedding
20 May 2011: London’s hotels enjoyed a strong April, thanks largely to the royal wedding and the extended holiday period created by the three bank holidays at the end of the month.
According to preliminary April figures released today by PKF Hotel Consultancy Services, rooms yield in the capital increased by 14.2% to £95.08, compared with £83.29 in April 2010. This was driven primarily by a 10.1% increase in room rate to £117.79, with only a slight increase in occupancy of 3.7% from 77.8% to 80.7%.
Hotel in Edinburgh and Cardiff also performed strongly, with rooms yield rising 16.0% and 8.2% respectively.
The rest of the country fared less well, with rooms yield declining by 0.6% to £37.25 from £37.48 for the same period a year ago. This can be attributed to a 2.6% decline in room rate to £53.61, which more than offset a 2.0% increase in occupancy from 68.0% to 69.5%. Manchester and Birmingham were amongst the hardest hit cities, seeing rooms yields drop 6.3% and 19.0% respectively.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “These results show that London’s hotels were able to make the most of the royal wedding and the extended holiday period through effective revenue management. With occupancy already at very high levels, there is only limited scope to increase client numbers so the focus turns to managing prices in response to market conditions."
"The numbers suggest that hoteliers have got this balance just about right. Looking ahead, we expect hoteliers in London to benefit from the Champions League Final at the end of the month and the build up to the Olympic Games. The regions, however, will more likely have a tougher time and continue to be dependent on growth in the MICE (meetings, incentives, conferences and exhibitions) and corporate markets, both of which remain challenging.”
ENDS
For further information, please contact: Andy Konieczko, PR Manager, 020 7065 0537, andrew.konieczko@uk.pkf.com
Preliminary data for April 2011
|
| UK Regional hotels | 753 | 753 |  |
| Average daily room rate per occupied room | £53.61 | £55.05 | -2.6% |
| Average daily room occupancy | 69.5% | 68% | 2% |
| Average daily rooms yield per available room | £37.25 | £37.48 | -0.6% |
| Approximate number of rooms per day | 81,750 | 81,900 | |
| London hotels | 139 | 139 | |
| Average daily room rate per occupied room | £117.79 | £107.02 | 10.1% |
| Average daily room occupancy | 80.7% | 77.8% | 3.7% |
| Average daily rooms yield per available room | £95.08 | £83.29 | 14.2% |
| Approximate number of rooms per day | 29,850 | 29,800 | |
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 network of legally independent firms. The PKF International Limited network has around 17,600 people operating in 120 countries around the world.
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 March 2011
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| UK Regional hotels | 870 | 870 | |
| Average daily room rate per occupied room | £62.05 | £61.18 | 1.4 |
| Average daily room occupancy | 67.1% | 67.2% | -0.2% |
| Average daily rooms yield per available room | £41.60 | £41.12 | 1.2% |
| Approximate number of rooms per day | 99,250 | 99,450 | |
| London hotels | 189 | 189 | |
| Average daily room rate per occupied room | £130.65 | £122.47 | 6.7% |
| Average daily room occupancy | 82.1% | 80.5% | 1.8% |
| Average daily rooms yield per available room | £107.21 | £98.70 | 8.6% |
| Approximate number of rooms per day | 42,200 | 41,850 | |
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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