Regional hotel performances grew faster than London during May

Improvements across room rates and occupancy in regional hotels outstripped the performance of their Londoncounterparts during May, according to preliminary figures from business advisory firm BDO.

Hotel operators in the regions enjoyed a 8.9% year-on-year increase in rooms yield to £45.42, while the average room rate rose by 8.4% to £59.85, compared with May 2013. Occupancy increased by 0.5% to 75.9%.

Growth for London hotels was more modest, with rooms yield at £97.89 and average room rates at £117.27, an increase on last year of 2.1% and 4.1% respectively.

However, occupancy in the capital fell by 1.9% to 83.5%, due to the comparison with May 2013 when the UEFA Champions League Final was held in Wembley.

Robert Barnard, partner at BDO, said that after a strong start to the year in both London and the regions, the regions pulled ahead in the last month.

"Two bank holidays have certainly had an impact as holidaymakers escape to the country for the long weekends, but the real deciding factor for the capital has been the absence of a major sporting event," he explained. "The actual occupancy level achieved of 83.5% in London does, nevertheless, reflect robust trading conditions in the capital."

"The UEFA Champions League Final hosted at Wembley in May 2013 saw an influx of tourists from the continent, while the past month has been relatively quiet in comparison with the build up to the World Cup. It remains to be seen how this major international tournament will impact the UK hotel sector."

BDO's hotel trends survey features mainly branded properties in the three- to four-star sectors.

Easter break and warmer weather drives growth in hotel sector >>

Pipeline of new UK hotels slows down, but re-branding is up >>

‘Strong and encouraging' 2013 figures for UK hotel industry >>