 UK hoteliers experience lacklustre summer holiday season
24 August 2009: The beginning of the main summer holiday season in July was lacklustre for many hoteliers, according to preliminary monthly figures released today by PKF Hotel Consultancy Services.
The capital did manage to achieve a 1.7% increase in occupancy from 88.1% in July 2008 compared to 89.7% in 2009, but room rate and rooms yield both decreased. Room rate was down 11.1%, from £132.86 to £118.11, and rooms yield was down 9.6% to £117.10.
In the regions, the beginning of the summer holiday season did not yield an increase in occupancy. The figures were down 4.3%, from 77.7% last year to 74.4%. Room rate was also down, by 7.7%, from £68.38 to £63.10 and overall, this meant rooms yield was down by 11.7% on July 2008 to £46.92.
Edinburgh and Cardiff were two cities that did achieve growth in July. In Edinburgh, occupancy increased by an impressive 9.1% to 86.4%. Room rate did decrease, falling 3.8% from £86.11 to £82.82, but the increase in occupancy meant rooms yield increased 4.9% on last year to £71.56. This year’s various ‘Homecoming Celebrations’, in honour of the 250th birthday of Robert Burns, are most likely to be the reason for the increases, as well as some other festivals such as the Highland Games.
In Cardiff, it was most likely the Ashes 1st test and the beginning of the Cardiff Festival that drew the crowds and meant hoteliers were able to increase their occupancy levels by 3.0% as well put up room rate. Rooms yield was therefore up 8.9% from £53.13 last year to £57.84 this year.
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 | Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “It is encouraging to see another increase in occupancy in the capital this month and 89.7% occupancy is very healthy. The strength of the Euro is likely to be one of the reasons behind this. Room rates are still struggling, but this is not surprising given the current climate.
“In the regions, although results overall were down, individual cities that made impressive gains are a positive sign.” |
Preliminary data for July 2009
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| UK Regional hotels (746) | | | |
| Average daily room rate per occupied room | £63.10 | £68.38 | -7.7 |
| Average daily room occupancy | 74.4% | 77.7% | -4.3 |
| Average daily rooms yield per available room | £46.92 | £53.15 | -11.7 |
| Approximate number of rooms per day | 83,500 | 83,200 | |
| London hotels (154) | | | |
| Average daily room rate per occupied room | £118.11 | £132.86 | -11.1 |
| Average daily room occupancy | 89.7% | 88.1% | 1.7 |
| Average daily rooms yield per available room | £105.90 | £117.10 | -9.6 |
| Approximate number of rooms per day | 35,150 | 34,900 | |
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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 June 2009
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| UK Regional hotels | 793 | 793 | |
| Average daily room rate per occupied room | £67.57 | £73.99 | -8.7 |
| Average daily room occupancy | 71.7% | 75.0% | -4.5 |
| Average daily rooms yield per available room | £48.41 | £55.53 | -12.8 |
| Approximate number of rooms per day | 90,300 | 89,850 | |
| London hotels | 203 | 203 | |
| Average daily room rate per occupied room | £135.23 | £146.33 | -7.5 |
| Average daily room occupancy | 85.4% | 84.4% | 1.1 |
| Average daily rooms yield per available room | £115.51 | £123.51 | -6.5 |
| Approximate number of rooms per day | 41,800 | 42,150 | |
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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