Hotels recovery still slow

The confidently expected recovery in the UK hotel industry is unlikely to be recorded in the final two months of 2002 or in early 2003, says consultant TRI Hospitality.

According to the latest figures from TRI, the UK hotel industry recorded a 0.8% fall in average room rate in October to £70.39, compared with the same month in 2001.

Occupancy increased by 4.1 percentage points to 76.8% compared with a year earlier, and revenue per available room (revpar) was up by 4.7% to £54.08, compared with £51.64 in 2001.

Figures for the 10 months to the end of October reveal continuing declines, however. Occupancy was down by 0.5 percentage points on 2001 at 72.8%, with room rate down by 3.8% to £68.46 and revpar down by 4.5% at £49.83.

London showed signs of recovery in October, bolstered by a 25.7% increase in overseas visitors. Occupancy in the capital's hotels increased by 14.1 percentage points to 82.2% and revpar increased by 13.8% to £69.94, against £61.45 a year earlier.

Room rate, however, was down by 5.7% to £85.06, compared with £90.19 in 2001.

No change as yet, QMH confirms

Hotel company Queens Moat Houses (QMH) has said it has yet to see any evidence of a sustained recovery in the hotel industry.

In an update for the first 11 months of the year ending 29 December, QMH said that although there had been some early signs of strengthening demand in the UK, trading in Continental Europe had been more difficult.

Occupancy at the group's 42 UK hotels fell by 1.2 percentage points to 74.3% in the first 47 weeks of the year, compared with the same period in 2001. Room rate fell by 3.9% to £57.56, and revenue per available room (revpar) dipped by 2.4% to £42.74.