Hotels in London show 20.6% leap in occupancies

The hotel market continued to bounce back in October with a hike in occupancy levels, although room rates remain depressed.

In the latest report from consultant PKF, covering three- and four-star hotels, London showed the biggest recovery after last year's post-11 September slump, with a 20.6% leap in occupancy to 77.2% in October. This gave a rooms yield increase of 19.8% to £79.95, but a 0.7% dip in the average room rate to £103.51.

Outside London, hotels achieved a smaller boost in occupancy levels by 2.9% to 74.7%, compared with a 4.1% drop in October 2001. Average room rated edged up by just 0.6% to £62.71 against a drop of 2.3% last year. Rooms yield was up 3.5% to £46.87.

Although the figures for October show a continuing recovery, the pace is slow.

"With the current uncertain global political and economic situation it's difficult to predict just when we will see a return to the figures achieved by the UK and London hotels in the late 1990s," said Melvin Gold, managing director of hotel consultancy services at PKF.

by Christina Golding