London hotels achieved high occupancy levels in July, while provincial properties enjoyed their first year-on-year growth in room rate for 2010, according to preliminary figures from business advisors PKF.
The capital’s hotels boosted revenue per available room (revpar) by 24.9% in July to £128.35, thanks to a 21.1% hike in average room rate (to £139.49) and a 2.8 percentage point lift in occupancy, to 92%.
Regional room rate rose by 0.3% to £61.70, the first year-on-year advance in 2010. This combined with a 3.5 percentage point increase in occupancy (to 77.5%) to improve revpar by 5%, to £47.81.
“The July figures for hoteliers across the UK are heartening. London continues to post positive results, as demand continues to strengthen compared to 2009,” commented Robert Barnard, partner for Hotel Consultancy Services at PKF.
“Meanwhile in the regions, the first year on year increase in room rate is obviously a positive sign. However, the autumn spending review due to be announced on 20 October could mean business travel is again affected. At the same time, I would expect the meetings incentive conference and events industry to start picking up again.”
PKF’s hotel survey spans a range of hotels across the country, although there are more chain-operated hotels than independents and more town and city hotels than country and rural properties. Most hotels fall into the three- to four-star brackets except in London, where they range from three to five stars.
DEFINITION OF TERMS
Occupancy: the ratio of total occupied rooms to total available rooms Average room rate: rooms revenue divided by the total number of guest rooms occupied during the year Revpar: room occupancy multiplied by the average achieved room rate