UK Hoteliers Continue To Hold Own | PKF Reports
UK hoteliers had another steady month in June with most reporting increased rooms yields, according to preliminary monthly figures released today by PKF Hotel Consultancy Services
In London, room rate was the main driver rising from £148.14 to £158.51 – an increase of 7.0% between 2007 and 2008. Occupancy dipped by 2.6% in the capital, but this is most likely due to the beginning of the holiday season affecting business travel. Overall, rooms yield rose a healthy 4.3% in London.
In the regions, room rate increased by 2.0% from £77.00 in 2007 to £78.56 in 2008. Occupancy dipped a little from 76.8% last year to 75.0% this year – a drop of 2.5%. Overall rooms yield fell by 0.5%. The year to date figures show that rooms yield has so far risen 1.1% on the same period last year.
Hoteliers in Liverpool, European Capital of Culture for 2008, continue to maximise profits recording a significant 19.4% increase in rooms yield from 53.37% to 63.72%. This was a culmination of an 11.1% increase in occupancy on the same period last year and a 7.4% rise in room rate.
Birmingham also had a strong month with a 4.1% increase in room rate and a 3.5% rise in occupancy.
“There has been a slight decrease in the occupancy figures for some cities this month, but the beginning of the summer holiday season goes some way towards explaining this.
“It should also be noted that the decreases are very small and, as 2007 was such a strong year, slight decreases are not a major concern particularly as the rooms yield year to date figures for both London and the regions are so far higher than the same period in 2007.
“Finally, it will be interesting to see if the Farnborough air show has its usual positive impact on London’s hotels in next month’s figures.“
Preliminary data for June 2008
Final data for May 2008
- 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).
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- 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.