 UK hoteliers experience further falls in March
20 April 2009: Hotels across the UK experienced further falls across occupancy, room rate and rooms yield in March, according to monthly figures released today by PKF Hotel Consultancy Services.
Direct year on year comparisons are hard to make when Easter falls in different months, which is the case between 2008 and 2009, but nonetheless the figures suggest that the economic downturn continued to affect the capital. Occupancy was down 1.3% on the same period last year, room rate was down 1.7% and, overall, rooms yield was down 3.0% from £92.54 last year to £89.80 in 2009.
Year to date figures paint a similarly downward trend with rooms yield in London down 7.2% to £83.82 since the beginning of the year.
In the regions, the year to date figure showed an 11.9% drop in rooms yield since January – a combination of a 6.6% drop to 61.6% in occupancy and a 6.0% drop in room rate from £77.14 to £72.75.
Year on year figures for the UK regions as whole, show that occupancy, room rate and rooms yield were all down on the March 2008 figures. Occupancy fell 4.2% to 65.4%, room rate dropped from £76.92 to £73.39 and rooms yield was down 8.6% to £47.99.
Leeds and Cardiff both had strong months however. Leeds was buoyed by a 4.1% increase in rooms yield from £52.20 last year to £54.35 this year. This was largely down to a 4.4% hike in occupancy which can most likely be put down to business conferences and the International Jazz Festival which the city played host to in March.
In Cardiff, again it was an increase in room occupancy – up 5.8% to 79.4% – that was the main driver behind the 3.2% rise in rooms yield. The Six Nations rugby games, held at the Millennium Stadium in the city, explain this increase.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “A true picture of how hoteliers fared in March is difficult to glean due to the fact that Easter fell in a different months between 2008 and 2009. The Easter break affects city hotels because there is always less business travel over the holiday period and as a result, many business conferences are deliberately postponed and this affects occupancy numbers.
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 | Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “With the global economy as it is, there is no doubt that 2009 is going to be a challenging year for hoteliers and therefore the figures for January and February are to be expected. |
“With the Easter break falling in March last year, the figures for the same month this year will inevitably be stronger. Most hoteliers did experience falls however and these could have been worse if it were not for the change in the Easter dates, therefore the global economic crisis has clearly taken hold of the hospitality sector.”
Preliminary data for March 2009
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| UK Regional hotels (333) | | | |
| Average daily room rate per occupied room | £73.39 | £76.92 | -4.6 |
| Average daily room occupancy | 65.4% | 68.2% | -4.2 |
| Average daily rooms yield per available room | £47.99 | £52.52 | -8.6 |
| Approximate number of rooms per day | 51,600 | 51,450 | |
| London hotels (105) | | | |
| Average daily room rate per occupied room | £115.88 | £117.92 | -1.7 |
| Average daily room occupancy | 77.5% | 78.4% | -1.3 |
| Average daily rooms yield per available room | £89.80 | £92.54 | -3.0 |
| Approximate number of rooms per day | 27,000 | 26,950 | |
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For further information or to speak to Robert, please contact:
Jane Murray, PR Executive, 020 7065 0135, jane.murray@uk.pkf.com
Notes to Editors:
- 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 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 more than 14,650 people operating in 119 countries around the world.
- 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.
- 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 February 2009
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| UK Regional hotels | 471 | 471 | |
| Average daily room rate per occupied room | £71.08 | £76.01 | -6.5 |
| Average daily room occupancy | 64.0% | 69.6% | -8.0 |
| Average daily rooms yield per available room | £45.52 | £52.91 | -14.0 |
| Approximate number of rooms per day | 65,550 | 66,800 | |
| London hotels | 173 | 173 | |
| Average daily room rate per occupied room | £127.42 | £135.15 | -5.7 |
| Average daily room occupancy | 74.9% | 77.0% | -2.8 |
| Average daily rooms yield per available room | £95.44 | £104.11 | -8.3 |
| Approximate number of rooms per day | 34,900 | 36,250 | |
Definition of the key terms used in the surveys table 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).
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