Hotels across the country rebounded from a challenging winter season in March, according to preliminary figures released today by PKF Hotel Consultancy Services.

Rooms yield in London grew by an impressive 5.5% to £105.26 from £99.73 in March 2011. This was driven by a 7.6% rise in room rate to £131.93, compared with £122.65 a year earlier, which more than offset a 1.9% decline in occupancy from 81.3% to 79.7%.

In the regions, a 3.1% rise in occupancy from 66.8% to 68.9% resulted in a 1.5% increase in rooms yield to £41.52, compared with £40.89 twelve months ago. Room rate fell by 1.5% over the period, from £61.19 in March 2011 to £60.28.

Robert Barnard, partner for Hotel Consultancy Services at PKF, commented: "The sector will be glad to see the back of an especially tricky winter season and I"m sure that hoteliers across the country will be crossing their fingers hoping that these figures are the start of a more positive longer term trend.

"The London hotel sector is shaping up well for a strong year. Looking ahead, the capital"s hotels are ideally placed to benefit from what could become a golden summer, with the Olympics now just 100 days away and the growing excitement surrounding the jubilee celebrations.

"Regional hotels deserve credit for posting rooms yield growth in March. The market outside London remains tough but these figures provide some grounds for optimism for the future.

Preliminary data for March 2012

Rooms department 2012 2011 % change
UK Regional hotels 835
Average daily room rate per occupied room £60.28 £61.19 -1.5%
Average daily room occupancy 68.9% 66.8% 3.1%
Average daily rooms yield per available room £41.52 £40.89 1.5%
Approximate number of rooms per day 90,250 90,200
London hotels 152
Average daily room rate per occupied room £131.93 £122.65 7.6%
Average daily room occupancy 79.8% 81.3% -1.9%
Average daily rooms yield per available room £105.26 £99.73 5.5%
Approximate number of rooms per day 31,850 81,800  

Notes to Editors:

1. PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,400 partners and staff operating in over 29 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 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

2. PKF (UK) LLP is a member firm of the PKF International Limited (PKFI) network of legally independent member firms. The PKFI member firms have around 2,200 partners and more than 21,000 staff in around 125 countries.

3. 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

4. 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.

5. Final data for February 2012

Rooms department 2012 2011 % change
UK Regional hotels
Average daily room rate per occupied room £60.91 £61.58 -1.1%
Average daily occupancy 65.1% 64.4% 1.1%
Average daily rooms yield per available room £39.64 £39.69 -0.1%
Approximate number of rooms per day 97,450
London hotels
Average daily room rate per occupied room £132.61 £129.78 2.2%
Average daily room occupancy 75.7% 75.2% 0.7%
Average daily rooms yield per available room £100.39 £97.59 2.9%
Approximate number of rooms per day 39,600

6. Definition of the key terms used in the surveys table are given below:

7. Room occupancy: the ratio of total occupied rooms to total available rooms

8. Average achieved room rate (AARR): rooms revenue divided by the total number of guest rooms occupied during the year.

9. Rooms yield: room occupancy multiplied by the average achieved room rate (also known as RevPar).

Andy Konieczko
PKF