 Robust June returns London hotels close to pre-recession levels while regions continue to gain strength ahead of holiday season
26 July 2011: Hotel figures for London showed solid growth in June, while regional hotels also had a positive month according to preliminary hotel figures from PKF Hotel Consultancy Services released today.
The figures in the capital were particularly strong in June, returning to close to pre-recession levels. Room rate was up 14.2% from £132.55 last year to £151.35 this year. Occupancy reached almost 90%, with a rise of 1.8% from 88.2% to 89.8%. Overall, this drove an impressive rooms yield increase of 16.2% from £117.01 to £135.91.
Looking at the cumulative year-to-date figures, the first six months of the year show similarly strong figures for London. Room rate is up 11.2% from £115.77 to £128.73 and occupancy has risen 0.3% to 80.5%. Rooms yield has increased 11.5%, from £92.87 in the first 6 months of last year to £103.57 in the same period this year.
In June in the regions, room rate rose 0.6% to £63.58; occupancy increased 5.4% to 78.8%. Rooms yield was therefore driven up by 5.9% from £47.30 last year to £50.10.
The regional cumulative figures for the first six months of 2011 show an increase, but not quite as strong as for London hotels. Room rate is so far up 0.3% from £59.98 to £60.18, room occupancy has increased 1.5% on the same period last year, and rooms yield grew 1.8% from £40.13 to £40.85.
Manchester posted an impressive performance thanks in part to the Unison National conference and an international medical conference during June. Room rate was up 8.5% to £79.28, room occupancy increased 10.6% to 83.7% and rooms yield grew an impressive 20.0% to £66.37 compared to £55.33 last year.
Edinburgh also had a strong month, with room rate increasing 8.1% to £95.58, room occupancy rising 5.7% to a stellar 91.7% and rooms yield growing 14.2% to £87.05.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented:
"London has had another fantastic month with performance returning to the sorts of levels that we used to see prior to 2007. Increases in room rate have largely driven the growth, but occupancy shouldn’t be ignored as it nudges the 90% mark. The economic backdrop is still challenging so hoteliers should not get too comfortable yet. However, with the Olympics only a year away now, there is scope for some level of on going optimism.
"In the regions, it was heartening to see another steady month. As the holiday season begins to start in earnest, and with many households still under pressure from increasing petrol and food prices, hoteliers in the regions will be crossing their fingers for staycations to once again boost their summer figures."
Ends
For further information, please contact: Andy Konieczko, 020 7065 0537, andrew.konieczko@uk.pkf.com
Preliminary data for June 2011
|
| UK Regional hotels | 828 | 828 |  |
| Average daily room rate per occupied room | £63.58 | £63.23 | 0.6 |
| Average daily room occupancy | 78.8% | 74.8% | 5.4 |
| Average daily rooms yield per available room | £50.10 | £47.30 | 5.9 |
| Approximate number of rooms per day | 92,400 | 92,400 | |
| London hotels | 153 | 153 | |
| Average daily room rate per occupied room | £151.35 | £132.55 | 14.2 |
| Average daily room occupancy | 89.8% | 88.2% | 1.8 |
| Average daily rooms yield per available room | £135.91 | £117.01 | 16.2 |
| Approximate number of rooms per day | 33,800 | 33,800 | |
Notes to Editors:
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.
Final data for May 2011
|
| UK Regional hotels | | | |
| Average daily room rate per occupied room | £62.66 | £62.54 | 0.2 |
| Average daily occupancy | 73.8% | 72.6% | 1.6 |
| Average daily rooms yield per available room | £46.24 | £45.41 | 1.8 |
| Approximate number of rooms per day | 98,150 | 98,200 | |
| London hotels | | | |
| Average daily room rate per occupied room | £149.49 | £128.34 | 16.5 |
| Average daily room occupancy | 84.4% | 83.7% | 0.9 |
| Average daily rooms yield per available room | £126.19 | £107.38 | 17.5 |
| Approximate number of rooms per day | 41,850 | 41,700 | |
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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