Future looks bright for hoteliers after another strong showing in August
UK hotels enjoyed another strong month in August, with year-on-year occupancy up in London and the regions, by 5.4 and 7.2 per cent respectively.
In the regions, a 0.3 per cent year-on-year rise in room rate to £60.43, compared with £60.26 in August 2012, coupled with a 7.2 per cent increase in occupancy from 73.8 per cent to 79.2 per cent, resulted in a 7.5 per cent improvement in rooms yield from £44.53 to £47.87.
Meanwhile in London occupancy increased by 5.4 per cent to 85.9 per cent, compared with 81.4 per cent a year earlier, but room rate dropped by 15.5 per cent from £147.63 to £124.70. As a result, rooms yield fell by 10.9 per cent from £120.22 to £107.13.
Nascent recovery
However, the August 2012 figures were boosted considerably by the Olympics and Paralympics, which helped the capital’s hotels to enjoy one of their strongest months in decades.
“This latest set of strong results suggests that momentum is beginning to build in the UK hotel sector,” said BDO partner Robert Barnard. “The industry was badly hit when the economy first hit trouble, and it appears that hotels are among the early beneficiaries of the nascent economic recovery.
“Hotels in London posted a 44.4 per cent rise in rooms yield this time last year thanks to the Olympics and Paralympics, so a 10.9 per cent decline in August 2013 should be viewed in a very positive light.
“In the regions, operators are able to increase occupancy by over 7 per cent without having to resort to price cuts, which is an encouraging sign.”
London Fashion Week
Hotel prices in the capital have increased significantly this month in line with London Fashion Week. According to the September trivago Hotel Price Index (tHPI), reported monthly by hotel comparison website Trivago, one night in London cost an average of £172 this month - a 6 per cent increase in comparison to August (£163 per night) and September 2012 (average of £162 per night). The London Fashion Week ran from 13-17 September.
Across Europe, prices have increased by an average of 13 per cent month-on-month and 5 per cent year-on-year. Based on the 50 most popular European destinations on Trivago, one night this September will cost an average of £110, in comparison to £98 in August and £105 in September 2012.
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