Warm weather and business travel drive hotel growth

By Carina Perkins contact

- Last updated on GMT

Related tags: Economic growth, Economics

Warm weather and business travel helped drive strong hotel performance in London and the regions last month
Warm weather and business travel helped drive strong hotel performance in London and the regions last month
Good weather and a strong corporate market helped drive further growth for both regional and London hotels in June, according to preliminary figures from business advisory firm BDO LLP.

The figures revealed that regional hotel occupancy increased 0.9 per cent year-on-year last month, with the warm weather driving UK tourism and economic growth boosting meetings, conferences and events in the regions.

Regional room rates were up 6.3 per cent year-on-year to £63.17, while rooms yield grew 7.2 per cent to £50.05.

London also benefitted from ‘steady growth’ in June, with rooms yield up 3.1 per cent year-on-year to £112.04 and average room rates up 3.4 per cent to £128.84. Occupancy in the capital remained flat at 87 per cent.

"The return of the corporate market, and more generally, sustained economic growth should continue to positively influence both London and regional performance,” said Robert Barnard, partner at BDO LLP.

Future growth

According to the latest figures from the Office of National Statistics​, UK hotels are also set to benefit from an increase in international visits this year, with visitor numbers up 11.7 per cent in the first quarter of the year and tourism spend set to reach £27bn by 2017.

The 2014 Mastercard Global Destination Cities Index revealed that London is one of the most popular global city destinations, suggesting that hotels in the capital in particular will benefit.

“Data such as this highlights the UK's attractiveness as a destination for overseas visitors while British tourists are still opting to stay at home,” said Barnard.

Related topics: Business, Hotels, Trends & Reports

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