London Hotel Market Remains Buoyant
The London hotel market remained buoyant in October and hotels in the regions also experienced further growth, according to preliminary figures released today by PKF hotel consultancy services. Amongst the key cities, Liverpool topped the charts with Leeds, Birmingham and Manchester not far behind.
In London the average room rate rose to £125.79, 10.7% higher than the October 2005 figure of £113.67. Daily room occupancy was also up 7.6% on 2005 resulting in an overall increase in rooms yield of 19.1% to £104.51.
The regions as a whole performed well with an overall yield increase of 5.9% to £56.73. Both occupancy and average room rate were higher compared to the levels seen last October. Liverpool enjoyed the highest growth in yield, up 7.7% from the same period last year, driven solely by higher average room rate as occupancy fell by 4.2%.
The cities of Leeds, Birmingham and Manchester also showed healthy growth rates in either room rate or occupancy driving rooms yield increases of 1.6%, 4.2% and 3.4%, respectively.
Robert Barnard, partner for hotel consultancy services at PKF, said: “This month’s figures are encouraging and we are confident that in 2006 the UK hotel market will see the best performance in a decade. Occupancy in London hotels has reached a level not seen since 1997 whilst average room rate is at record levels. Meanwhile we expect regional hotels to continue delivering steady growth rates.â€
Preliminary data for October 2006
|
Rooms department |
2006 |
2005 |
% change |
|
Average daily room occupancy |
78.3% |
76.3% |
2.5 |
|
Average daily rooms yield per available room |
£56.73 |
£53.58 |
5.9 |
|
Approximate number of rooms per day |
73,250 |
72,150 |
|
|
London hotels (175) |
|
|
|
|
Average daily room occupancy |
83.1% |
77.2% |
7.6 |
|
Average daily rooms yield per available room |
£104.51 |
£87.75 |
19.1 |
|
Approximate number of rooms per day |
39,550 |
39,550 |
|
For further information
Jason Gowar PR Manager, PKF +4420 7065 0573
Jane Murray PR Executive, PKF +4420 7065 0135
About PKF
1. PKF is one of the UK’s leading firm’s of accountants and business advisors and specialises in advising the management of developing private and public businesses. The firm has more than 1,500 partners and staff operating in 22 offices around the country. Principal services include assurance and advisory; consultancy; corporate finance; corporate recovery and insolvency; forensic; and taxation. The firm has particular expertise in advising sectors such as small and medium sized companies; charities; hotels and leisure; medical; professional partnerships; public sector; and technology. The firm’s web site is http://www.pkf.co.uk/ .
2. PKF (UK) LLP is the UK member of PKF International, an association of legally independent firms, which has more than 12,800 people operating in over 100 countries around the world.
3. PKF 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 http://www.pkf.co.uk/ /hotelcons.
4. PKF’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.
5. Final data for September 2006
|
Rooms department |
2006 |
2005 |
% change |
|
Average daily occupancy |
80.8% |
79.2% |
1.9 |
|
Average daily rooms yield per available room |
£58.84 |
£55.87 |
5.3 |
|
Approximate number of rooms per day |
82,900 |
83,850 |
|
|
London hotels |
202 |
202 |
|
|
Average daily room occupancy |
87.4% |
78.9% |
10.7 |
|
Average daily rooms yield per available room |
£108.95 |
£90.10 |
20.9 |
|
Approximate number of rooms per day |
42,050 |
42,450 |
6. A PKF Hotline provides free advice to anyone facing financial difficulties. The hotline – 0845 1 22 00 44 – is manned Monday to Friday during office hours. Callers will be automatically directed to a local expert. All calls are charged at local rates.
7. 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).
