Economic slowdown continues to affect UK hoteliers

16 December 2008 by
Economic slowdown continues to affect UK hoteliers

UK hoteliers continued to experience the knock on effect of the global economic downturn in November with further declines in room rate, occupancy and room revenue, according to figures by PKF Hotel Consultancy Services.

In London, room rate was down 5.6% on the same period last year from £137.29 to £129.93, while occupancy fell 6% to 79.5%. Revenue per available room (revpar) saw a decline of 11.1% to £103.32.

In the regions, the picture was not much brighter. Room rate was down 2.0% from £76.68 in 2007 to £75.17, while occupancy fell 5.6% to 69.3%. Overall, revpar was down 8% from £56.23 in 2007 to £52.06 in 2008.

Even regions that have hitherto held their own found themselves experiencing losses. For example, revpar in Leeds and Manchester were down 3.1% and 11.3% respectively. Edinburgh continued to have a difficult year and reported losses of 5.3% in occupancy and 6.7% in revpar.

Robert Barnard, partner for Hotel Consultancy Services at PKF, said: "Figures from hoteliers in the last few months have shown they are beginning to feel the inevitable squeeze from the UK, and global, economic downturns.

"In the capital however, looking at the year to date figures, there was some growth to see as room rate is up 4.7% on the same 11 month period in 2007, while overall, revpar was up 3.2% on the same period.

"As there is still no end in sight to the current economic downturn however, it is unfortunately probable that hoteliers will have to endure further knocks in 2009."

UK room rates fall for first time since August 2003>>

Weak pound could boost UK tourism>>
PKF monthly hotel performance update - Industry data>>
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UK hoteliers must look for creative ways to cut costs>>

By Gemma Sharkey

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