 Disappointing August for UK hotels
28 September 2009: August was a disappointing month for UK hotels, largely as a result of decreases in room rate, according to preliminary monthly figures released today by PKF Hotel Consultancy Services.
In London, room rate was down 7.0% on the same month last year from £109.77 to £102.07. Occupancy also dropped, by 2.3%, from 83.7% last year to 81.8% this year and rooms yield was down 9.2%, from £91.96 to £83.53.
In the regions, rooms yield was down 11.0% from £49.57 to £44.10. This was largely as a result of an 8.0% decrease in room rate from £66.19 in 2008 to £60.91 in 2009. Occupancy also dropped, by 3.3%, from 74.8% to 72.4%.
Year to date figures for both London and the regions painted a similar picture with rooms yield down 7.7% from £96.04 to £88.63 and 13.3% from £48.76 to £42.27 respectively.
Edinburgh was able to achieve growth in occupancy in August from 88.9% last year to an impressive 91.3% this year. Room rate was down 7.1% which dragged down the city’s overall performance: rooms yield was down 4.7% to £102.61.
Leeds and Liverpool were also able to increase occupancy, but again yield was pulled down by the decreases in room rate. Room rate in Leeds was down 8.4% to £58.26 while occupancy rose 3.0% to 73.7% on the same month last year. Rooms yield was down 5.7% to £42.93.
Liverpool room rate was significantly down compared to August 2008. It fell 21.2% from £70.91 to £55.86. Occupancy rose by 7.6%, but rooms yield was down 15.3% from £48.51 to £41.11.
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 | Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “This year was always going to be a tough one for hoteliers and therefore these figures are not hugely surprising.
“It is heartening to see that occupancy rates are creeping back up in many of the cities – Edinburgh in particular had an astonishing month achieving 91.3% occupancy – and Liverpool managing a 7.6% increase was particularly impressive given the 2008 figures were already boosted as a result of the city’s status as European Capital of Culture. On the flip side, this explains why Liverpool’s room rate is down so dramatically.
“But, ultimately, if hoteliers can continue to draw in visitors, they will be in a better position to slowly increase room rate as soon as the economic situation allows them to.“ |
Preliminary data for August 2009
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| UK Regional hotels (746) | | | |
| Average daily room rate per occupied room | £60.91 | £66.19 | -8.0 |
| Average daily room occupancy | 72.4% | 74.8% | -3.3 |
| Average daily rooms yield per available room | £44.10 | £49.57 | -11.0 |
| Approximate number of rooms per day | 85,000 | 84,800 | |
| London hotels (154) | | | |
| Average daily room rate per occupied room | £102.07 | £109.77 | -7.0 |
| Average daily room occupancy | 81.8% | 83.7% | -2.3 |
| Average daily rooms yield per available room | £83.53 | £91.96 | -9.2 |
| Approximate number of rooms per day | 34,350 | 34,050 | |
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For further information or to speak to Robert, please contact:
Jane Murray, PR Executive, 020 7065 0135, jane.murray@uk.pkf.com
Notes to Editors:
- PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk.
- PKF (UK) LLP is a member firm of the PKF International Limited network of legally independent firms. The PKF International Limited network has around 15,000 people operating in 120 countries around the world.
- PKF (UK) LLP 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 www.pkf.co.uk/hotelcons.
- PKF (UK) LLP’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.
Final data for July 2009
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| UK Regional hotels | 789 | 789 | |
| Average daily room rate per occupied room | £63.90 | £69.50 | -8.1 |
| Average daily room occupancy | 74.2% | 77.3% | -4.2 |
| Average daily rooms yield per available room | £47.39 | £53.77 | -11.9 |
| Approximate number of rooms per day | 94,000 | 93,650 | |
| London hotels | 205 | 205 | |
| Average daily room rate per occupied room | £131.26 | £149.64 | -12.3 |
| Average daily room occupancy | 89.7% | 88.0% | 1.9 |
| Average daily rooms yield per available room | £117.69 | £131.71 | -10.6 |
| Approximate number of rooms per day | 44,450 | 44,300 | |
Definition of the key terms used in the surveys table are given below:
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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