London hotels have achieved the highest August occupancy since 1999, according to preliminary figures published by business advisory and accountancy firm, BDO.
Occupancy for the capital increased last month by 3.4% to 87.3%, while average room rate (ARR) was up 3.1% to £117.55. As a result, rooms yield grew by 6.7% to £102.66. The boost in rates was driven by an increase in foreign tourists in London, and mirrors record August passenger figures at Heathrow and Gatwick airports.
Regional hotels also had a strong month, with August recording the fourth month of double-digit growth this year. Occupancy increased by 3.9% to 82.2%, while ARR and rooms yield grew by 7.9% to £61.00 and 12.1% to £50.16 respectively.
Robert Barnard, partner at BDO, said: "The buzz of UK tourism has firmly kept the momentum experienced last year and hoteliers are reaping the rewards as both overseas and domestic visitors make the most of all that the country has to offer.
BDO's hotel trends surveys feature mainly chain hotels in the three- to four-star sectors, predominately in towns and cities.