Coldest August in years fails to freeze UK hotel growth

24 September 2007 by
Coldest August in years fails to freeze UK hotel growth

UK hotels achieved improved year-on-year performance last month, even though it was the coldest August since 1994, research revealed today.

London hotels achieved a 10.7% increase in revenue per available room (revpar) from £89.46 to £99.02. This was fuelled by a 9.3% increase in room rate to £117.75 and a modest increase of 1.3% in occupancy to 84.1%, according to consultancy PKF.

The Edinburgh Festival ensured that hotels in the Scottish capital had a good month with 91.5% occupancy and a 5.2% increase in room rate generating a revpar increase of 6.5% on the August 2006 figures to £111.12.

Birmingham also had a good August with a 19.5% uplift in revpar from £24.98 in 2006 to £29.85.

In contrast, Cardiff hotels' flat year continued with a small drop in occupancy to 75.9%, a 2.8% drop in room rate to £58.20 and an overall drop in revpar of 4.1% to £44.16. Revpar in Leeds also fell 3.4% to £42.84.

Robert Barnard, partner for hotel consultancy services at PKF, said: "London hotels bounced back in August albeit as a result of a hefty increase in room rate rather than a significant increase in the number of visitors.

"The strength of the pound against the US dollar continued to shorten the time that US visitors stay in the capital but did not deter visitors from Japan and the rest of the world.
"With the exception of Edinburgh, there was a drop off in the number of visitors to regional hotels but hoteliers did well to compensate by putting up their room rates by 3.9%."

Industry data: PKF Monthly Hotel Performance Update >>

Industry data: PKF Hotel Britain 2007 >>

July a good month for hotels despite weather >>

Bad weather does not dampen UK hotel market >>

By Daniel Thomas

E-mail your comments to Daniel Thomas]( August in years fails to freeze UK hotel growth) here.

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TagsFinance and Hotels
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