Growth in the regions has kept the UK hotel market buoyant, despite a cold winter deterring visitors from London.
Cardiff, Birmingham and Manchester led the way as rooms yield increased by 4.1% across the UK. Average room rates (ARR) were up 2.5% from £68.22 in 2006 to £69.93 in 2007, and average room occupancy (ARO), rose 1.6% from 68.9% in 2006 to 70% for this year's first quarter.
While visitor figures for London were down for the same period in 2006, Cardiff enjoyed spectacular growth with a rooms yield increase of 12.5%. This was driven by a 7.1% rise in ARR and a 5% rise in ARO.
Robert Barnard, partner for hotel consultancy services at PKF, said: "February's preliminary figures show steady growth across the UK market which continues the trend from January."
In a separate survey by market analyst HVS, European hotel values grew by 9.4% in 2006 reaching the highest levels in history. The Annual Review of European Hotel Value Trends also found London had retained its position as the most expensive city in Europe in which to acquire a hotel.
Dominique Bourdais, director at HVS, said: "After breaking through the 500,000 euro (£340,000) barrier last year, the average value per room in London] has increased to 576,700 euros (£392,000), a 12 % growth over 2005's record values."
by Emily Manson
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