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Record breaking summer for UK hotels

31 October 2006
Record breaking summer for UK hotels

UK hotels have enjoyed their best summer's performance since the millennium, according to sector analysts PKF.

London did particularly well in June, July and August with luxury (average room rate £150 to £200), first class (average room rate £100 to £150) and boutique hotels enjoying revenue per available room (revpar) growth of 20.1%, 22.6% and 21% respectively compared with 2005.

First class and boutique hotels also achieved the highest increase in occupancy during the year with average occupancy up 17.7 percentage points for first class and 13.9 percentage points for boutique.

European and American tourist numbers in the capital were up during the summer, but trips by Japanese tourists fell.

Despite this, it remained enough to boost revpar at tourist hotels (£75 average room rate) by 7% in June, 21.8% in July and 32.4% in August.

Robert Barnard, partner at PKF, said: "The significance of breaking through the performance markers set in the millennium year cannot be underestimated. Hotel Britain has had to weather some extremely difficult trading conditions since that time but it has come through with fling colours."

Regional hotel performance improved at more modest levels compared with London, but Aberdeen, Bournemouth and Heathrow and Slough had a great summer, also.

PKF monthly hotel performance update >>
Hotels achieve record results in June >>

UK hotel market now worth £3.65b >>

By Chris Druce

E-mail your comments to Chris Druce](mailto:chris.druce@rbi.co.uk?subject=Record-breaking summer for UK hotels) here.

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