Survey claims ‘limited effect' of foot-and-mouth disease on hotels

The foot-and-mouth outbreak has been less damaging for British hotels than expected, according to a survey from consultancy PKF this week.

Preliminary data from 567 regional hotels outside London shows occupancy during March was 1.2% up on 2000, which was a good year for the industry.

Average room rates were up by 4% and revenue per available room (revpar) rose by 5.2%.

At 121 London hotels PKF found occupancy dropped from 81.6% to 76.9%, compared with last year. Revpar was down from £88.11 to £85.43, but average room rate rose from £107.89 to £111.04.

Melvin Gold, managing director of hotel consultancy services at PKF, said: "Despite the limited effect to date, we have to recognise the very significant impact of the foot-and-mouth outbreak in some rural areas, and we have great sympathy with those operating businesses in those difficult conditions.

"In addition to the foot-and-mouth crisis, the industry has also had to cope with a downturn in the US economy and an extended period of truly awful weather."

The PKF survey of hotels with a total of 95,500 rooms represents about 20% of the British hotel market.