UK hotels market "has reached turning point"

London occupancy rates slipped by 0.3 percentage points to 82.7% in July, against 82.9% in the same month last year. Average room rate rose by 0.2% from £109.47 to £109.71.

This resulted in overall revenue per available room (revpar) of £90.68, compared with £90.80 in July 2001 - a drop of just 0.1%.

In regional hotels occupancy climbed to 75.6%, an increase of by 0.2 percentage points on July 2001. Average room rate edged up by 0.1% from £63.09 to £63.15, while revpar rose by 0.3% from £47.59 to £47.73.

The survey found that the marginal occupancy rise in the regions was largely influenced by the Commonwealth Games. This boosted revenue in Manchester, the host city, by 15.1%.

The survey concludes that this uplift on previous months gives a strong indication that the market has reached a turning point.

"There's a real chance that the remainder of 2002 will see a gradual upturn, leading to more favourable conditions in 2003," said Melvin Gold, managing director of hotel consultancy services at PKF.