Hotels in the UK enjoy rise in occupancy and room rates

Damian Hagerty

UK hotels saw a strong comeback from the recession for the fiscal month of July.

In both London and the surrounding regions, hotels enjoyed a significant increase in room and occupancy rates. London hotels saw the greatest increase with rates rising a staggering 92 per cent. The regions enjoyed a rise as well, however, with figures increasing for the first time in 2010, according to PKF Hotel Consultancy Services. In the capital, hotel firms posted their strongest figures of the year, with room rates up from an average of £115.17 to £139.49, constituting a 21.1 per cent market increase from last year.

Occupancy rates were also on the rise with an increase of 3.1 per cent, meaning overall room yields rose 24.9 per cent in London moving from £102.76 back in 2009 to £128.35 on average for 2010. In the regions, room rates also increased, however just marginally to £61.70, constituting a 0.3 per cent rise.

This marks the first year-on-year increase the industry as enjoyed throughout 2010. Individual cities across the regions also posted personal increases in room rates for July, with hoteliers in Leeds seeing a 1.3 per cent rise moving to £61.24 this year from £60.46 last year.

Partner in the hotel consultancy service for PKF, Robert Barnard said that the figures for July are encouraging for UK hoteliers as it represents the industry is on the recovery from a harsh downturn last year. He added that London continues to post significant improvement month to month. However, reviews for autumn have shown that business travel could once again head on the decline, but Mr Barnard said that he expected it would quickly pick-up again.

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