Slow October for UK hoteliers
In the regions, occupancy was down 5.8% on 2007 from 77.2% to 72.7%. Room rate also fell 1.5% to £76.19 which meant rooms yield was therefore down 7.6% on 2007, from £59.70 to £55.42.
On a positive note, Liverpool still managed to make impressive gains due to its status for the year as European Capital of Culture. Room rate was up 1.2% from £81.98 to £82.93 while occupancy managed a 3.9% increase to 83.9% for the city. Overall, rooms yield jumped 5.1% from £66.26 last year to £69.61 this year.
Leeds was another northern city to experience some growth as rooms yield was up 0.6% on last year from £59.00 to £59.36.
On the flip side, Cardiff experienced more falls with a 9.4% drop in occupancy and a 16.8% decrease in room rate. As in September, the falls can be explained in part due by the Rugby World Cup matches which Cardiff played host to in 2007, boosting the city’s hotels significantly.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “The continued global economic woes mean that the lack of growth experienced by many hoteliers in October, were to be expected.
“It is important to note that the falls overall were fairly moderate and the industry, while feeling the effects, is still holding its own. Occupancy in the capital is still at 83.8%, while in the UK as a whole, the hotels in our survey are at 72.7% of their capacity.”
Preliminary data for October 2008
- PKF (UK) LLP 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, incorporating 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 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, an association of legally independent member firms with more than 14,650 people operating in 119 countries around the world.
- PKF (UK) LLP 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 www.pkf.co.uk/hotelcons.
- PKF (UK) LLP’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 September 2008
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