Recovery in London occupancy levels

27 May 2002 by
Recovery in London occupancy levels

Occupancy in London hotels fell by just 1% to 71% last month compared with April 2001.

It was the smallest fall since January last year, indicating that the darkest days of foot-and-mouth and 11 September have passed, according to consultant PKF.

There was no change in year-on-year occupancy outside London, which stood at 69%.

Average daily room rate in the capital was down by 5% to £103.31, leading to a fall in revenue per available room of 6% to an average £73.64 a day.

Outside London, average daily room rate increased by 3% to £63.53. Revenue per available room was also up by 3% to £43.75.

Melvin Gold, managing director of hotel consultancy services at PKF, said: "Whilst this isn't news to shout from the rooftops, hoteliers will be relieved to see some upturn after a disappointing few months.

"April was always expected to be a stronger business month, after most of Easter falling in March. Nevertheless, it provides some cheer and something to build on. The Jubilee and the Commonwealth Games give hoteliers a marketing focus."

Gold added that bank holidays always cause a drop in revenue from corporate guests, but he believed the Jubilee would have a far-reaching positive impact on the volume of leisure business, not just over the coming weekend, but throughout the rest of the year.

PKF surveyed 559 three- and four-star hotels outside London, and 109 three- to five-star hotels in the capital.

by Ben Walker

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