Hotel room rate and occupancy rise in February, says BDO
Hotels have seen a boost in rates and occupancy in February, with room yield and rates on the rise, according to the latest figures from business advisory firm BDO.
Increased consumer confidence drove the main improvement, as falling business costs and increased wage growth meant the public was happier to spend. Events such as Valentine's Day and the Six Nations rugby tournament also helped boost trade.
This trend was the same in the regions as in London, with regional hotels having seen an 8.4% rise in average room rate to £57.43, compared to February last year. Occupancy increased by 2.7% to 71.8%, while rooms yield was up 11.4% to £41.22.
The February figures come following the BDO figures for January, which showed the hotel sector was at its strongest since 2010.
Robert Barnard, partner at BDO, explained that strong levels of domestic tourism, cost deflation, and investment in events such as the Six Nations and the hotel industry overall, had helped to "give the sector an incredibly strong start to the year".
He added: "As we emerge strong from the recession and consumers have more cash in their pockets, we expect even further domestic tourism, as well as increased overseas travellers numbers, will help the industry continue to thrive."
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