UK hotel occupancy and rates still suffering

UK hotel room yields, rates and occupancies declined in the first six months of the year, according to preliminary figures from consultancy company PFK.

And while June occupancy levels started to increase again, the region is still suffering.

Between January and June this year there was a 7% decline in room yield compared to the same period last year. This was down to a 0.8% fall in occupancy and a 6.6% drop in rates from £126.67 last year to £118.72 this year. In June itself, occupancy increased 1.4% on the June 2008, from 84.2% to 85.5%.

Around the country, figures looked bleaker. Year to date, at the end of June there was a 15.8% decline in room yield from £47.80 to £41.27. Occupancy was down 6.9% and room rate down 7.3%. In June, little changed with room rates down 8% from £66.26 to £71.98, occupancy down 4.2% while rooms yield was down 13.4% from £54.03 to £47.64.

There was some good news in the survey, though. Edinburgh saw year to date growth in occupancy over the period by 0.2% from 71.5% while Cardiff and Manchester achieved an increase in occupancy levels in June this year compared to last by 0.2% and 0.5% respectively.

Partner for Hotel Consultancy Services at PKF Robert Barnard said: "Hoteliers across the UK have certainly had a difficult year so far, but there are some signs to suggest that the industry will have a slightly better second half.

"The figures for June show that more cities were able to achieve either an increase, or smaller decrease, in occupancy than experienced hitherto, which is a positive sign. Most hoteliers are struggling to maintain historical room rates, however, and this is ultimately depressing rooms yield for the time being." Report by Dinah Hatch Travel Mole website.

Published: 27.7.2009