Pre-Christmas trading disappointing for UK hotels

By Becky Paskin , 21-Dec-2009

Related topics: Trends & Reports

Hoteliers are being told to ‘take heart’ from strong occupancy levels recorded in London and Edinburgh, as most of the UK experienced difficult trading in the run-up to Christmas

2009 has been a difficult year for the hotel industry

2009 has been a difficult year for the hotel industry

Hoteliers are being told to ‘take heart’ from strong occupancy levels recorded in London and Edinburgh, as most of the UK experienced difficult trading in the run-up to Christmas.

 

According to data collected in October and November by PKF Hotel Consultancy Services, occupancy in London increased by 5.9 per cent in 2009, when compared to 2008. And although room rate was down 1.6 per cent to £119.66, rooms yield increased by 4.2 per cent over the period.

 

Hotels in Edinburgh meanwhile saw a 3.3 per cent rise in occupancy to 78.5 per cent, while rooms yield declined by 2.5 per cent to £61.51.

 

UK hotel performance in October and November 2009

 

 

However, hotels in the regions experienced a difficult period, with room rate down 7.8 per cent from £65.66 in 2008, to £60.52 in 2009. As occupancy also dropped by 3.5 per cent to 68.9 per cent, rooms yield saw an 11.1 per cent fall.

 

Robert Barnard, partner for Hotel Consultancy Services at PKF, said 2009 had been a difficult year for the leisure and hotel industry.

 

“This is not surprising given the current recessionary climate and average achieved room rate has been the main contributory factor. On a positive note, occupancy remains strong in certain cities and hoteliers should take heart from this.”

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