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Second bout of flooding to hit regional hotels
The second round of severe flooding this month will impact UK regional hotels at the start of the summer peak, PKF Hotel Consultancy Services warns.
Despite healthy figures for June, UK hoteliers will be bracing themselves, at least those in the areas most affected, for a less than successful July, according to PKF.
“The second bout of severe flooding is doubly bad as it is hitting the peak of the summer season when hotels would hope to be busy with families taking domestic breaks and overseas visitors coming to the country,” the consultancy said.
Partner Robert Barnard said: “It is heartening to see that the attempted terrorist attacks in London and Glasgow and the major flooding experienced in the UK at the end of June did not effect the month’s figures.
“However, I suspect the second spell of severe flooding the UK has recently experienced will take its toll on regional hotels when we see July’s figures. Hoteliers will be affected not only due to actual flooding, but also as a result of the knock on effect across much of the country’s roads which will have halted many families’ holiday plans.
“Nonetheless, returning to the June figures, UK hotels had a very strong month. The capital continues with very healthy occupancy levels, 87.9%, not to mention the ongoing rises in the room rate. The story is similar in the regions where the year to date figure for rooms yield is a healthy 4.1%.”
Occupancy in London last month climbed back up from a slight drop experienced in May and rose 1.4% on June 2006 – last year’s figure was 86.7% and this year’s 87.9%. The average room rate increased by more than 10% to £138.94.
Rooms yield saw a solid rise in the regions in June due to a combination of increases in both the average room rate and the average daily occupancy levels. PKF said. Yield rose by 6.3% from £52.79 in June last year to £56.12 this year. This was a result of a 4.4% rise – £69.60 in 2006 to £72.63 in 2007 – in the average daily room rate and a 1.9% rise – 75.8% in 2006 to 77.3% in 2007 – in occupancy.
Birmingham and Leeds that led way with respective rooms yield growth of 13.6% and 10.3%.
“In Leeds, the flooding may in part help explain the growth in occupancy seen because the train station closure may have forced many into the city’s hotels for an overnight stop,” PKF said.
by Phil Davies
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