Economic crisis continues to affect UK hotels
The economic downturn continued to affect the UK hotel industry throughout November as hoteliers experience a sharp decline in room rate, yield and occupancy.
According to figures released by PKF, the average occupancy in London dropped by six per cent, resulting in a fall in room rate of 5.6 per cent from an average of £137 to £129 on the same time last year.
Regional hotels also experienced a drop in trade, with room occupancy falling by 5.6 per cent, room rate by two per cent, and room yield by eight per cent.
The figures reflect the struggle UK hoteliers are facing in the economic climate, as companies cut back on business travel spend. PKF also attribute the sharp drop during November to the protests in Thailand, which may have prevented hotel occupancy at the country’s airport hotels.
Robert Barnard, partner for hotel consultancy services at PKF, said that despite year to date figures for the capital showing a room rate growth of almost five per cent, hoteliers will still face turmoil in the year to come.
“Figures from hoteliers in the last few months have shown they are beginning to feel the inevitable squeeze from the UK, and global, economic downturns,” he said. “November was unfortunately no different, (and) as there is still no end in sight to the current economic downturn, it is unfortunately probable that hoteliers will have to endure further knocks in 2009.”
While November saw the collapse of Folio hotels, who are feverishly seeking buyers for a handful of their 36 properties, other large name hotel companies like Malmaison are looking to cut-price offers to entice guests during the Christmas period.
