British hotels hold steady in turbulent economic climate

By Becky Paskin

- Last updated on GMT

Related tags: Hotel

British hotels hold steady in turbulent economic climate
Changes in the economic climate have not deterred hotel business, according to new figures

The marginally brighter British summer this year has not had a positive or negative impact on hotel room occupancy or room rate, according to figures released by PKF Hotel Consultancy Services.

Despite gloomy weather and the credit crunch cloud hanging over holiday makers heads, overall occupancy levels for August only dipped marginally by 1.3 per cent on last year, when heavy downpours and flooding plagued the country.

In fact, London hotels saw a 4.4 per cent growth in revpar, contributed to largely in part to an average increase in room rate from £126 to £133. The PKF figures also show that hotels were more profitable during July this year than in August, when the average daily room occupancy level dropped by four percent to 72 per cent.

Robert Barnard, partner for Hotel Consultancy Services at PKF, said: “It is true that there have been some dips in occupancy over the last eight months, but these have been by no means drastic - 2007 was also a very strong year and therefore some losses in 2008 were to be expected.”

“Looking solely at the UK’s hotel figures for 2008, however, you would be for forgiven for forgetting about the turmoil as hoteliers across the country have so far experienced a steady year. Let’s hope this momentum is maintained, but inevitably there will be some fallout with the markets as they are.”

Related topics: Trends & Reports

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