Hotels enjoy strong September, but gloomy times are ahead
Despite posting a strong set of results in September, hotels need to undertake skilful revenue management in order to combat the uncertain economy, according to preliminary hotel figures released today by PKF Hotel Consultancy Services.
Rooms yield in London increased by a healthy 6.8% to £139.08, compared with £130.17 in September 2010, thanks to a 7.5% rise in room rate to £156.04. Occupancy dropped by 0.6% from 89.6% a year ago to 89.1% - the second consecutive monthly decline in the capital since the August riots.
Hoteliers in the regions saw rooms yield grow by 2.1% from £50.60 to £51.66, with a 2.2% increase in occupancy more than offsetting a 0.1% decline in room rate from £64.76 to £64.71. Liverpool and Edinburgh performed particularly well, posting year-on-year rooms yield rises of 6.6% and 4.7% respectively.
Robert Barnard, partner for Hotel Consultancy Services at PKF, said: "With much of the economy seemingly struggling to keep its head above water, another impressive
performance from the hotel sector is undoubtedly good news. Although London remains the engine of growth, it is encouraging to see that the industry is not overly reliant on any single region and that growth appears to be increasingly broad-based.
"That said, hotels cannot keep successfully battling the economic headwinds indefinitely. During the final quarter of the year, the industry will need to assess how best to respond to growing concerns about the health of the economy, the uncertain future of the Eurozone, and declining consumer and business confidence both at home and abroad.
"Skilful revenue management is likely to be essential if hotels are to maintain the same high level of performance that we've seen thus far.
"The second consecutive decline in occupancy at London hotels suggests that hoteliers will be watching guest numbers for October with interest, but I doubt that any alarm bells will be ringing whilst occupancy remains close to 90%.
London drives UK hotel recovery, say PKF report >>
Scottish hotels outshine rest of UK in February >>
By Janet Harmer
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