According to figures released today by PKF Hotel Consultancy Services, the increase in yield was driven by increasing room rates by 2.3 and 2.1 per cent in London and the Provinces respectively. Occupancy was also marginally up, to 87.8 per cent and 75.1 per cent.
Govinda Singh, director for hotel & hospitality consultancy services at PKF, said: “This is an impressive showing from the hotel sector – particularly when put in the context of lingering pessimism about the performance of the economy as a whole.
“London remains the engine of growth, which is hardly surprising. However, it is encouraging to see that regional operators are also posting solid results.
With under six weeks left to the end of the year, the figures give signs that the hotel industry is back on track to deliver a modest increase in rooms yield for 2012 as a whole – which Singh labels ‘a significant achievement’.
“It was a turbulent 12-month period in which operators have sought to make the most of major events such as the Diamond Jubilee, Olympics and Paralympics whilst battling against a sluggish economy and a lack of consumer and business confidence,” she added.
Hotel prices fall
Meanwhile, the latest monthly trivago Hotel Price Index (tHPI) has revealed that hotel prices across the nation have actually fallen by 15 per cent year-on-year, with one night in the UK costing an average of £111 this month, compared to £119 in October (7 per cent decrease) and £130 last November.
Prices have decreased by an average of 18 per cent in the past two months alone, and are now at their cheapest since January 2012.
The only city showing a significant increase this month is Cardiff, with hotels at an average of £91 a night, up 8 per cent compared to October. In Liverpool, prices are up year-on-year by 8 per cent, to an average of £81. Prices are down elsewhere compared to November 2011.
Out of the 50 European cities in November’s Trivago Hotel Price Index, room rates in 46 cities have decreased in comparison to last month. In the UK, hotels will be sure to ramp up their prices next month for the Christmas and New Year period - last year, prices rocketed by up to 200 per cent.