UK Hoteliers Hold Own Despite Gloomy August Weather

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. October 14, 2008

LONDON, UK, September 25, 2008. Hotels across the UK were able to maintain steady occupancy levels, room rate and rooms yield figures in August despite the gloomy weather that set in across the country, according to preliminary monthly figures released today by PKF Hotel Consultancy Services.

In the capital, hotels achieved 4.4% growth in rooms yield on the same time last year. This was largely down to a 5.7% increase in room rate from lb126.42 last year to lb133.68 this year. Occupancy levels only dipped marginally, down 1.3% on 2007, and year to date figures show the capital has so far had a good 2008 with rooms yield up 7.2% on 2007.

The UK regions had mixed experiences. Overall, room rate was up 1.9% from lb71.49 in 2007 to lb72.84 this year and occupancy levels were down 2.0%. This meant rooms yield fell slightly on 2007 by 0.2%.

Birmingham, Cardiff, Leeds and European Capital of Culture Liverpool, all had strong months. In Leeds, rooms yield increased by 6.1% on 2007 - a combination of a 4.2% rise in room rate and a 1.8% rise in occupancy.

In Cardiff occupancy was up 4.8% and room rate 6.7%. These rises meant rooms yield jumped from lb48.88 to lb54.69 and the increases are likely to be largely because 2007 was a slower year than normal for the city. This is not the case for Liverpool however, which continues to build momentum as European Capital of Culture as the year develops. This month, rooms yield was up 16.0% on 2007.

Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, 'We are now well over half way through what can only be described, from an economic perspective, as a turbulent year compounded by the events of black Monday, 15 September 2008.

'Looking solely at the UK's hotel figures for 2008, however, you would be for forgiven for forgetting about the turmoil as hoteliers across the country have so far experienced a steady year. It is true that there have been some dips in occupancy over the last eight months, but these have been by no means drastic. 2007 was also a very strong year and therefore some losses in 2008 were to be expected.

'Let's hope this momentum is maintained, but inevitably there will be some fallout with the markets as they are."