Hotels outside London continue to struggle in recession

By Becky Paskin , 29-Jun-2009

Related topics: Trends & Reports

While London’s hotels have seen an increase in visitors in May this year, those outside the capital have continued to struggle against the impact of the recession

Hotels outside London continue to struggle in recession

While London’s hotel occupancy levels once again towered over regional figures in May, hoteliers outside the capital remain hopeful for a more successful summer as families choose to holiday in the UK.


According to monthly figures released by PKF Hotel Consultancy Services , occupancy levels across London increased by 1.3 per cent on last year to 82.1 per cent, while hotels in the regions saw a 5.6 per cent fall to 70.1 per cent.


In a bid to attract guests, hotels across the UK have reduced room rates on last year, with those in London dropping 7.3 per cent to £116.49, and those in the regions reducing room rate by 9.3 per cent to £69.75.


Robert Barnard, partner for Hotel Consultancy Services at PKF, said May’s figures were similar to April’s, which saw London hotels fare better than those outside the capital.


“London’s year round appeal means that visitors continue to stay in the capital’s hotels, pushing up occupancy figures,” he said. “The economic climate means that hoteliers are having to reduce their rates in order to attract the visitors however and overall this is affecting rooms yield. The regional story is a different one with the cities losing in the downturn on both an occupancy and rate front.


“With the Summer holiday season beginning, hopefully we may see some better regional results if families, as predicted, do indeed choose to holiday in the UK this year.”


A recent survey completed by Travelodge found that almost three quarters of Brits are planning to holiday in the UK this summer, with 40 per cent intending to visit seaside locations.


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