Corporate travel drives hotel growth in October

London hotels saw room rates rise 1.7 per cent to £124.63 during the month, with occupancy up 1.1 per cent to 88.1 per cent. This contributed to a 2.8 per cent rooms yield increase to £109.85.

In the regions, hotels experienced a 6 per cent uplift in room rates to £59.76, while occupancy rose 4.3 per cent year-on-year to 80.4 per cent. As a room yields hit double digit growth, rising 10.5 per cent.

BDO said October is the 'prime' month for conferences and corporate events, and increased corporate travel reflects 'growth in the wider economy as business confidence returns and attendance at these types of events is on the up'. 

“We’ve seen vast improvements in the UK economy over the last year, as businesses held momentum for the first time in years. Confidence is high and is reflected by the increase in conference attendance and events – which in turn, has driven the growth in the hotels sector," said Robert Barnard, partner at BDO LLP.

“Since the beginning of 2014, a number of environmental and economic factors have created the perfect setting for UK hotels to thrive – from the Glasgow Commonwealth Games, to the warm summer and the continued rise of the ‘staycation’.

“This is good news for hoteliers in London and the regions and should provide a strong foundation to build on in the coming year.”