London hotels hurt by June Jubilee

Wednesday, 24 Jul, 2002 0

June saw the worst occupancy levels in London for almost 10 years according to hotel consultancy firm PKF.

The Golden Jubilee meant that there were two bank holidays in the month, disrupting the business market and leading to occupancy figures not seen since 1993. Occupancy fell by 6.2% to 78%, which PKF points out is low for what is “usually a strong trading month in one of Europe’s strongest hotel markets.”

Average room rates fell by 11.7% due to the hotels’ reliance on leisure rather than business travellers, meaning yields were down 17.2%.

In the regions there was a drop in occupancy of 4.4% and a fall in room rate of 3.4%, leaving yields down by 7.7%.

However PKF hotel consultancy services managing director Melvin Gold points out that the overall effect of the Jubilee should be positive. He said: “Although these figures give cause for concern in the short term, the Jubilee is still a plus for hotels in the longer term as positive UK marketing images hit TV screens around the world.”

Mr Gold added: “In London there is a continuing reliance on the domestic market as the only growth area and it is key that overseas visitors are attracted back. If the Jubilee helps to achieve that then its ultimate legacy will be more positive than that bestowed on the UK’s hoteliers in June.”

Preliminary Data for June 2002
Rooms Department

Rooms Department	2002	2001	% change
UK Regional Hotels (495)
Average daily room rate per occupied room	£63.52	£65.78	-3.4
Average daily room occupancy	70.8	74.0	-4.4
Average daily rooms yield per available room	£44.97	£48.72	-7.7
London Hotels (107)
Average daily room rate per occupied room	£109.28	£123.77	-11.7
Average daily room occupancy	78.0	83.1	-6.2
Average daily rooms yield per available room	£85.25	£102.95	-17.2

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