PFK figures reveal impact of snow and recession on UK hotels
The bad economic climate and heavy snowfall in the UK impacted UK hoteliers in January and February, according to figures released today by PKF Hotel Consultancy Services.
Occupancy in London fell below 70% for the first time since the same period in 2006.
Hotels in the survey recorded an occupancy rate of 67.0%, down 5% on the 70.5% achieved in January 2008.
While slow growth is usually expected during the month of January, the global economic downturn played a big part in the reduction. Average room rate dropped 3.8% to £124.96 and overall, rooms yield was down 8.6% to £83.74.
Preliminary figures for February show that occupancy in London reached 74.9%, but this was 2.8% down on the 2008 figure of 77%.
A fall in business travel, plus snow disruption at the beginning of the month, were blamed for the decline.
Room rate fell 3.2% on 2008 to £130.79 and rooms yield was down from £104.11 in 2008 to £97.96 in 2009.
In the regions, January occupancy figures were down 9.6% to 54.50%.
Average room rate fell from £75.45 in 2008 to £70.79 in 2009 meaning, overall, rooms yield was down 15.1% on 2008.
In February, the preliminary figures had rooms yield down 13.4% to £46.25 as room rate was down 6.2% – from £71.89 last year to £76.63 this year. Occupancy fell 7.7% from 69.7% in 2008 to 64.3% in 2009.
The biggest losers in the regions in February were Birmingham and Liverpool.
Birmingham’s rooms yield dropped 23.7% on 2008 from £61.89 to £47.21. Rooms yield in Liverpool was down 20.4% from £69.34 in 2008 to £55.18 this year.
Both cities will have lost out on business travel in comparison to 2008, but last year Liverpool held the crown of European Capital of Culture so its 2008 figures were inflated.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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