UK Hotels Stutter In June As Economic Concerns Hit Occupancy
Hotels across the country experienced a noticeable decline in occupancy in June as economic concerns at home and overseas brought the sector"s recent recovery to an end, according to figures released today by PKF Hotel Consultancy Services.
London hotels saw occupancy drop by 9.0% to 82.0% compared with 90.1% in June 2011, whilst room rate increased by 2.2% from £163.40 to £166.96. This resulted in a 7.1% year-on-year reduction in rooms yield from £147.28 this time last year to £136.87.
Hotels in the regions experienced a 3.0% decrease in occupancy from 78.3% to 76.0%. This more than offset a 1.0% rise in room rate from £61.02 to £61.64, leading to a 2.0% drop in rooms yield to £46.82 compared with £47.78 a year ago.
Robert Barnard, partner for Hotel Consultancy Services at PKF, commented: "Although we"ve seen noticeable falls in occupancy across the country in June, it"s important to keep these results in context – occupancy remains high in absolute terms, with London hotels continuing to sell well over 80% of their available rooms during the month.
"A lack of confidence in the domestic economy and the Eurozone"s ongoing problems, which intensified in June with the uncertainty surrounding Greece"s continued participation in the single currency and the Spanish banking bailout, will have undoubtedly contributed to these results. Europe accounts for as much as 75% of our overseas visitors, so the UK hotel sector will be hit if businesses and individuals in struggling EU countries cut back on their spending. The record rainfall that the country experienced last month will not have helped either.
"The impact of the extended Diamond Jubilee bank holiday at the start of the month appears to have been insufficient to hold back the economic headwinds. Hotel operators throughout the UK will be hoping that the Olympics and Paralympics will have a more significant effect."
Final data for June 2012
| Rooms department | 2012 | 2011 | % change |
| UK Regional hotels | 839 | ||
| Average daily room rate per occupied room | £61.64 | £61.02 | 1.0% |
| Average daily room occupancy | 76.0% | 78.3% | -3.0% |
| Average daily rooms yield per available room | £46.82 | £47.78 | -2.0% |
| Approximate number of rooms per day | 83,550 | ||
| London hotels | 170 | ||
| Average daily room rate per occupied room | £166.96 | £163.40 | 2.2% |
| Average daily room occupancy | 82.0% | 90.1% | -9.0% |
| Average daily rooms yield per available room | £136.87 | £147.28 | -7.1% |
| Approximate number of rooms per day | 33,450 |
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 www.pkf.co.uk 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 www.pkf.co.uk/hotelcons 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 May 2012
| Rooms department | 2012 | 2011 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £62.12 | £60.99 | 1.9% |
| Average daily occupancy | 73.8% | 73.9% | -0.1% |
| Average daily rooms yield per available room | £45.82 | £45.09 | 1.6% |
| Approximate number of rooms per day | 91,300 | ||
| London hotels | |||
| Average daily room rate per occupied room | £150.37 | £151.09 | -0.5% |
| Average daily room occupancy | 84.3% | 84.6% | -0.3% |
| Average daily rooms yield per available room | £126.76 | £127.78 | -0.8% |
| Approximate number of rooms per day | 35,300 |
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).
