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UK hotels sector 'building momentum'

20 | 09 | 13

Preliminary figures from BDO LLP suggest hotels in the UK had strong success in August.

The findings are important to those in the catering equipment industry, as there is a reasonable relation between the two. As hotels improve, so do their restaurants and need for kitchen equipment - especially if strong success results in expansion or redevelopment.

Outside London, the firm reports a year-on-year growth of 0.3 per cent in room rates. This brings August's average rate to £60.43, compared with £60.26 a year ago. Occupancy was also reported to go up by 7.2 per cent - going from 73.8 per cent twelve months ago to last month's 79.2 per cent. This resulted in a rooms yield of £44.53 to £47.87 - an upturn of 7.5 per cent.

Company partner Robert Barnard said: "[Outside London], operators are able to increase occupancy by over seven per cent without having to resort to price cuts, which is an encouraging sign."

In London, occupancy rose by 5.4 per cent, bringing it to 85.9 per cent from 81.4 per cent a year ago. Room rates, however, dropped by 15.5 per cent, going down to £124.70 from £147.63. This resulted in rooms yield declining by 10.9 per cent to £107.13 from £120.22.

Mr Barnard said: "Hotels in London posted a 44.4 per cent rise in rooms yield this time last year thanks to the Olympics and Paralympics, so a 10.9 per cent decline in August 2013 should be viewed in a very positive light."

BDO LLP suggests this is due to the Olympics, which boosted figures in August 2012 - which was one of the most successful months recorded in decades. As such, the current figures may not reflect the current state of London's hotel industry by comparison.

It also said the hotel sector appears to be benefiting from a recovering economy.ADNFCR-16001031-ID-801640025-ADNFCR


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