Occupancy grows but rates are down

Hoteliers have been working hard to keep hotels full, with occupancies showing a rise in September; but room rates are still below the levels of last year, says a report from consultants TRI Hospitality.

Occupancy for hotel chains across the UK increased by 2.9 percentage points from 75% in September 2001 to 77.9% in September 2002. However, room rates dipped by 3.1% from £71.85 to £69.61, according to the HotStats Chain Hotels Market Review for September 2002.

London hotels continued to take the biggest knock in revenues. While occupancy across London saw a jump of 7.4 percentage points from 75.7% to 83.1%, revenue per room dropped by 9.2% from £91 to £82.65. This produced a revenue per available room (revpar) of £3,215.

"Hoteliers [in London] have had to admit greater volumes of discounted business in order to maintain and then grow occupancy levels," said the TRIreport.

Hotels in the provinces fared better, with occupancy moving up by 1.2 percentage points from 74.8% in September 2001 to 76% in September this year. Room rates dipped by just 0.6% to £64.45. This put revpar for the month at £3,217.

Figures for the provinces, said the report, indicate the start of a growth phase "where hoteliers will soon be able to drive room rates upwards based on returning demand".

by Christina Golding