Hotels fare well but future could be tight, says consultant

Strong hotel business in most parts of the country over the past few months will help brace the industry for a tough road ahead as the effects of the Government’s spending review start to be felt.​

According to the latest figures released by accountants and business advisors PKF, London hotels did particularly well in September, while some regional hotel business was slightly shakier.

 “September was a robust month for London hoteliers with many regional cities also posting positive results,” said Robert Barnard, partner for Hotel Consultancy Services at PKF.

However, he added that the Chancellor’s spending review announced last week​ “is likely to affect hoteliers moving forward, as businesses tighten their belts once again”.

“The solid figures we have seen over the past few months are at least a good start point if there are to be further bumps in the road ahead for the UK’s hoteliers.”

Higher rates boost London hotels​

The figures, which are still preliminary, show that the strong business in London was largely a result of higher room rates. 

Average daily room rate in the city increased by just under 13 per cent to £133.37 (from £118.56 last September).  Occupancy was up 4.7 per cent from 80 per cent in 2009 to 89 per cent this year.

Regional business​

The picture elsewhere in the UK was not as strong, although hoteliers in most regions managed to keep their business in an upward trend. 

Overall, room occupancy in regional hotels increased almost 6 per cent to 78 per cent. However, prices remained more or less stationary, with average room rate coming in at £65.42 in September this year, compared to £65.45 in September 2009.

Hoteliers in Edinburgh saw room rate increase 4 per cent to £93.13, while occupancy remained high at 89 per cent.  The Labour Party conference had a good impact on business in Manchester, with occupancy increasing 5 per cent to 82 per cent, while room rate increased just over 9 per cent to £81.78.

Liverpool, on the other hand, did not fare quite so well, with both occupancy and room rate falling.  Room rate was down almost 7 per cent to £65.98, while occupancy was down almost 4 per cent to 76 per cent.