Hoteliers ‘a long way' from new successes…

UK hoteliers are still experiencing tough trading conditions and are a long way from clawing their way back to the heights of 2000, according to the latest figures from consultancy PKF.

Hoteliers in London reported a 1.4 percentage point increase in occupancy in June, to 78.9%, but this was at the expense of average room rate, which fell by 5.5% to £100.18, compared with £106 in June 2002.

Revenue per available room (revpar) fell by almost 4% to £79.07.

But comparing the figures with those from 2002 made them appear even worse, as two bank holidays and the Queen's jubilee celebrations in June last year led to a massive 14.6% decline in revpar to £82.21.

Outside London, hoteliers fared a little better, with occupancy creeping up by 2.7 percentage points to 73% and room rate increasing by 0.7% to £62.37 during the month. Revpar was up by 4.5% on the figure for June 2002, to £45.52.

Again, when compared with declines experienced last year, the figures reveal that the UK hotel industry has failed to recoup the losses suffered in 2002. Revpar in June last year was down by more than 7% on 2001.

Melvin Gold, managing director of hotel consultancy services at PKF, said: "I think that it's going to be a real struggle to see much of an upturn this year. We are now looking to 2004, which I hope will be a better year so the industry can put three pretty tough years behind it."

Gold added that last week's strikes by British Airways staff at Heathrow airport would constrain demand further in July, and that the industry was unlikely to see trading reach its peak until 2006.

By Angela Frewin