UK hotels experience slowdown in September
In the regions, there was a similar story as occupancy dropped 3.4% from 78.9% to 76.3%, while room rate was down 0.3% on September 2007. In turn, rooms yield dropped from £60.72 in 2007 to £58.49 this year.
Cardiff experienced the largest falls in the survey with rooms yield down 15.9% from £66.26 last year to £55.73 this year. The main factor behind the drop was the 14.6% fall in room rate, occupancy only fell 1.5%. The falls can be explained in part because last year Cardiff played host to a number of the Rugby World Cup matches which boosted the city’s hotels.
In contrast, both Manchester and Liverpool achieved growth in rooms yield – Liverpool by 2.4% and Manchester by 2.7%. This is probably a reflection of Liverpool’s 2008 status as European Capital of Culture bringing visitors to both the cities’ hotels.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “The decreases that hoteliers experienced this month are not surprising given the current turmoil in the markets which is undoubtedly affecting business travel.
“However, it should also be noted that hoteliers did have a particularly strong September in 2007 and this goes some way to explaining some of the decreases.“Overall, it is important to note that despite the drops, occupancy levels, as well as room rate and rooms yield figures, are still fundamentally healthy due to two strong years of growth in 2006 and 2007 and hoteliers are therefore in a good position to weather the current climate.”
Preliminary data for September 2008
- PKF is a leading firm of accountants and business advisers with more than 1,800 partners and staff operating in 23 offices in the UK mainland firm, a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk.
- PKF (UK) LLP is a member of PKF International Limited, and association of legally independent member firms which does not accept any responsibility or liability for the actions or inactions on the part of any individual member firm or firms. Individual member firms do not accept responsibility or liability for actions or inactions on the part of any other individual member firm or firms.
- PKF has been providing hotel consultancy services since the early 1970s and, in that time, has undertaken thousands of assignments throughout Europe, the Middle East and Africa and further a field. Services include: market evaluation and financial feasibility studies; operational and profit improvement reviews; asset management; business valuations; international property services; corporate strategy and planning; litigation support. PKF’s web site features regular articles from the firm’s hotel consultancy services experts on industry topics – the address is .
- PKF’s hotel trends surveys feature a broad range of hotels across the country although mainly in the 3 – 4 star categories and featuring rather more chain operated hotels than those operated independently. While there are a fair number of hotels in country and rural areas, there is a predominance of hotels in towns and cities. In London, supply featured is mainly in the 3 –5 star categories.
Final data for August 2008