Regional hotel room rate rises for fist time in 2010

25 August 2010
Regional hotel room rate rises for fist time in 2010

UK hotels had a strong month in July, with both London and the regions experiencing a rise in occupancy and room rates.

Occupancy at London hotels rose to 92%, while the regions saw their first increase in room rate in 2010, preliminary figures by PKF Hotel Consultancy Services have revealed.

In the capital, hoteliers posted strong July figures, with room rate up from £115.17 to £139.49, marking a 21.1% increase compared with last year. Occupancy was also up, by 3.1% to 92.0%, which meant overall rooms yield increased 24.9% in London from £102.76 in 2009 to £128.35 this year.

In the regions, room rate increased marginally by 0.3% to £61.70, marking the first year-on-year increase seen so far this year. Occupancy also rose, by 4.7% to 77.5%, while rooms yield was up 5% to £47.81.

Individual cities in the regions also posted increased room rate in July. Leeds hoteliers posted a 1.3% rise from £60.46 last year to £61.24 this year, while Edinburgh was up 0.5% to £94.63.

Robert Barnard, partner for hotel consultancy services at PKF, said the July figures were heartening for hoteliers across the UK.

"London continues to post positive results, as demand continues to strengthen compared with 2009 and the first year-on-year increase in room rate in the regions is obviously a positive sign," he said.

"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."

Preliminary data for July 2010

UK Regional hotels (797) 2010 2009% change
Average daily room rate per occupied room £61.70 £61.54 0.3
Average daily room occupancy 77.5% 74.0% 4.7
Average daily rooms yield per available room £47.81 £45.54 5.0
Approximate number of rooms per day 93,300 93,500
London hotels (146) 2010 2009 % change
Average daily room rate per occupied room £139.49 £115.17 21.1
Average daily room occupancy 92.0% 89.2% 3.1
Average daily rooms yield per available room £128.35 £102.76 24.9
Approximate number of rooms per day 34,100 34,150

Austerity cuts will hit regional hotels the hardest >>

Global hotel sector shows signs of recovery >>

Occupancy soars in London hotels during first six months >>

By Kerstin Kühn

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