UK hotel market continues to thrive
Despite recent interest rate rises, the UK hotel market has continued to thrive during January, according to a new report.
PKF said the increase was driven by a 13% increase in the average room rate, from £107.48 in 2006 to £121.49 in 2007, and a 4.3% increase in daily room occupancy, 68.5% in 2006 to 71.6% in 2007.
The regions also performed well, with an overall revpar up 5.6%. This was driven by consistent growth in both the average room rate, a 3.3% rise from £67.37 last year to £69.61 in 2007, and the average room occupancy, a 2.2% rise on 2006.
Robert Barnard, partner for hotel consultancy services at PKF, said, "It is astounding to see the London market performing so strongly."
He added: "It is testament to the fact that London has become an increasingly desirable location for people to visit with luxury hotels performing particularly well following an influx of foreign visitors. The regional figures are also excellent and the steady climb is again unusual at this time of year."
Preliminary data for January 2007
| - Rooms department | 2007 | - 2006 | - % change |
|---|---|---|---|
| - UK regional hotels (518) | - | - | - |
| - Average daily room rate per occupied room | - £69.61 | - £67.37 | - 3.3 |
| - Average daily room occupancy | - 60.0% | - 58.7% | - 2.2 |
| - Revenue per available room | - £41.78 | - £39.56 | - 5.6 |
| - Approximate number of rooms per day | - 69,100 | - 68,050 | - |
| - London hotels (173) | - | - | - |
| - Average daily room rate per occupied room | - £121.49 | - £107.48 | - 13 |
| - Average daily room occupancy | - 71.6% | - 68.5% | - 4.3 |
| - Revenue per available room | - £86.94 | - £73.72 | - 17.9 |
| - Approximate number of rooms per day | - 37,800 | - 37,800 | - |
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