January’s snowfall caused ‘havoc’ for UK hotels

By Becky Paskin

- Last updated on GMT

Related tags: Cent, Hotel, United kingdom

Some UK hotels saw occupancy levels fall after heavy snowfall in January
Some UK hotels saw occupancy levels fall after heavy snowfall in January
While the January snow benefited some hotels in the regions, by leaving stranded travellers needing a last minute bed for the night, many experienced a negative month with occupancy levels falling

Latest figures released by PKF Hotel Consultancy Services show that the snowfall, which fell heaviest in rural areas, had a positive impact on occupancy levels for hotels in the regions, up 1.4 per cent on 2009 to 55.9 per cent.

Room rate however fell 6.4 per cent to £65.26, bringing rooms yield down by 5.1 per cent to £36.48.

Hotels in Edinburgh, Cardiff and Manchester all saw occupancy levels increase in January too, by 3.4 per cent, 2.8 per cent, and 8.9 per cent respectively. Those in Leeds, Liverpool and Birmingham however, saw a decline in occupancy for the month, by 0.5 per cent, 0.1 per cent and 3.7 per cent respectively.

UK hotel performance for January

Robert Barnard, partner for Hotel Consultancy Services at PKF, said that while the snow caused ‘havoc’ for travellers and hoteliers in January, the next few months and its improved weather would be good news for the industry.

“As we look forward to spring so do thoughts of summer holidays and this could bode well for UK hotels in 2010,” he said. “Although the country is officially out of recession, economic difficulties are still affecting many UK families and this, coupled with the weakness of the pound, could mean that many decide to holiday in the UK this year.”

Hotels in London were largely unaffected by the snow in January, despite the temporary airport closures restricting trade from foreign tourists and corporate business. Room occupancy increased by 4.9 per cent to 70.9 per cent, room rate rose by 4.1 per cent to £114.80, meaning rooms yield reached £81.38 after an increase of 9.2 per cent.

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