UK hotels post 'exceptionally strong' April results

According to preliminary results released by the accountancy and business advisory firm, room yield or revenue per available room (RevPAR) jumped by nearly 10 per cent in London compared with a year earlier while the regions also experienced a boost in RevPAR - up 3.7 per cent.

The latest market data shows the average room rate in the capital in April stood at £124.11 while occupancy soared to 83.9 per cent. 

The strong set of results will not only be welcomed by the sector, which had experienced a difficult winter trading period, but may come as a surprise given the data compares more than favourably with a year earlier - the month of the Royal Wedding. At the time it was reported that hotels and B&B's had enjoyed their best April in five years​ as a result of the increased interest in the UK due to Prince William and Kate Middleton's nuptials.

Stellar​

Robert Barnard, partner for hotel consultancy services at PKF, described the results as 'stellar' and said the performance during difficult economic times was impressive news for the industry.

"We may have seen even stronger performance if not for it being one of the coldest and wettest April’s on record. “It is encouraging to see London coming close to posting double digit rooms yield growth as it begins to gear up for the Diamond Jubilee, Olympics and Paralympics. What makes this all the more impressive is that we are comparing against April 2011, when the capital was buoyed by the Royal Wedding," he said.

While global hotel operator InterContinental Hotels Group (IHG) posted a modest RevPAR increase in the UK in the first three months of this year​ describing the market as resilient, Malmaison and Hotel du Vin owner MWB Group today revealed first quarter trading had been 'challenging'​ and there had been a slight drop in revenue per available room.

Provinces​

In the regions the picture, according to PKF, remains difficult but April was also a strong month for provincial hotels. Average room rate rose by more than 3 per cent to £55.93 while occupancy remained largely unchanged - growing just 0.2 per cent to 70.2 per cent.

"Pressures are likely to remain as many such operators rely on the meetings, incentives, conferences and exhibitions (MICE) market, which continues to flatline. But they are unquestionably making the best of a very tricky situation," he said.