Hotel room rates push up yield, PKF data confirms

Published today, the preliminary monthly figures for January once more point to a slow month in terms of room occupancy​, but increases in room rate allowed for positive room yields.

Data from PKF Hotel Consultancy Services shows that room rate in London increased 8.3 per cent from £104.41 last year to £113.09 this year. Room occupancy decreased 3.1 per cent from 72.1 per cent in 2010 to 70 per cent this year. Overall, this meant a rooms yield increase of 5 per cent from £75.36 to £79.12.

In the regions, room rate increased 2.2 per cent from £57.60 in January last year, to £58.87 in January this year. Room occupancy remained flat at 53.8 per cent while rooms yield was up 2.2 per cent to £31.69.

Slight concern​

Robert Barnard, partner for Hotel Consultancy Services at PKF, said: “January is often a slow month following the Christmas rush and occupancy figures usually run at a lower percentage. The declines in room occupancy – mostly across the board – however, are slightly concerning for the industry as it looks towards 2011.

“Having said that, room rate increases did counter balance the falls in room occupancy so it was not a bad month for the UK’s hoteliers.

“The government’s austerity drive and the cuts to the public sector are likely to have an impact on the industry as we go through 2011, but there are also events such as the Royal wedding in April which will provide a boost for the industry so I do not predict too much of a struggle for the year to come.”

City performance​

PKF also broke down data for individual cities.

Cities such as Cardiff and Leeds followed a similar pattern to London, with room occupancy declining, but room rate increasing.

In Cardiff, room rate was up 5.3 per cent from £58.43 last January to £61.50 this January. Room occupancy was down 4.7 per cent from 56.5 per cent to 53.9 per cent while rooms yield was up 0.4 per cent to £33.14.

In Leeds, room rate was up 4.6 per cent to £61.27, room occupancy was down 0.4 per cent and rooms yield was up 4.2 per cent to £37.32.

In another survey released this week​, asset managers Vision warn that non-essential spend in hotels remains tenuous, and say that hoteliers should be “greatly concerned” about areas such as food and beverage and conferencing.