UK Hotel Performance Steady Despite UK Economic Gloom | PKF Reports

In London, room rate increased by 3.6% from £136.49 last year to £141.40 this year while occupancy figures saw a rise of 1.0%, from 80.2% to 81%. Overall this meant rooms yield in the capital increased by a healthy 4.7%. The year to date figures show a healthy picture with room rate up 5.1% on the same period last year. Occupancy figures are on a par with 2007 and this means overall, rooms yield has increased 5.1%.

In the regions, rooms yield saw an increase of 1.0% – from £54.85 last year to £55.39 this year. This was driven by the increase in room rate of 1.4% because occupancy fell 0.4%. The year to date figures show a similar pattern with room rate up 2.5% on the same period last year, while occupancy has dropped 0.1%. Rooms yield is up 2.4% on 2007.

Liverpool continues to draw in the visitors as European Capital of Culture for 2008. It recorded the highest occupancy figures across the survey with an increase of 7.7% from 75.2% last year to 81.1% this year. With a hike of 2.2% on room rate, rooms yield increased by a robust 10.0%.

Cardiff also recorded strong figures in May most likely as a result of the city’s Millennium Stadium being host to the Heineken Cup Final. Room rate was up 12.2% and average occupancy up 3.1% from 76.5% to 78.9%. Overall rooms yield increased by 15.7%.

Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “As the figures for March and April were affected by the different Easter holiday dates between 2007 and 2008, the figures for May are the first true indicator for the market thus far in 2008.

“Looking at the preliminary figures we can see that the industry is so far faring well despite the economic concerns that the country is facing.

“It’s true that increases in room rate are a driving force, but occupancy figures are holding their own and on a par with 2007 which, it should be remembered, was a strong year.”

Preliminary data for May 2008

Final data for April 2008

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

• Room occupancy: the ratio of total occupied rooms to total available rooms
• Average achieved room rate (AARR): rooms revenue divided by the total number of guest rooms occupied during the year.
• Rooms yield: room occupancy multiplied by the average achieved room rate (also known as RevPar).

1. 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 .



2. PKF (UK) LLP is a member of PKF International which is an association of legally independent firms with more than 14,650 people operating in 119 countries around the world.



3. 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 .



4. 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.