Hotels in the UK maintained steady trading in October, according to early figures released today by PKF Hotel Consultancy Services.
London fared marginally better than the regions, with rooms yield up 1.4% from £111.14 in October 2010 to £112.7, driven by a 3.6% increase in room rate from £124.97 to £129.43.
However, performance was affected by a 2.1% fall in occupancy for the third consecutive month.
Hotels in the regions saw rooms yield fall by 0.9%, from £43.37 to £42.99, as a 2.8% decline in room rate from £59.39 to £57.75 more than offset a 1.9% rise in occupancy from 73.0% to 74.4%.
Commenting on the figures, Robert Barnard, partner for Hotel Consultancy Services at PKF, said they demonstrated that the hotel sector was not immune to the challenges facing the economy as a whole, but was holding up well.
"Hotels across the country are operating in an unhelpful trading environment that will not improve any time soon, so it is encouraging to see rooms yield growth in London and an occupancy rate that remains close to 90%.
"Regional hotels usually rely on the meetings, incentives, conferences and exhibitions (MICE) market in the autumn, so this year's figures suggest that the corporate market remains stubbornly subdued.
"This is not the first time that the sector has faced unfavourable economic headwinds. Hoteliers know that they have a fight on their hands and the results we have seen so far suggest they have the right strategies in place to win the battle."
By Janie Stamford
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