London hotels increased revenue per available room (revpar) by 4.5% in the month of June 2008, according to preliminary figures from business advisor PKF.
Average room rate, which increased by 7%, was the key driver of growth as occupancy fell by 2.2 percentage points, largely due to the onset of the holiday season which hit business travel.
Revpar dropped by 0.5% in the provinces as a 2% rise in average room rate was undercut by a 1.8 percentage point drop in occupancy.
Liverpool’s status as European Capital of Culture helped it boost revpar by 19.4%, from 53.37% to 63.72%, thanks to an 11.1% surge in occupancy and a 7.4% increase in room rate.
Birmingham also did well in June, raising room rate by 4.1% and occupancy by 3.5%.
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“These preliminary figures for June show that the UK hotel industry continues to remain steady in 2008,” commented Robert Barnard, partner for hotel consultancy services at PKF.
He was unconcerned by the slight falls in occupancy, citing the start of the summer holiday season and the strong performance recorded in 2007.
“The rooms yield year to date figures for both London and the regions are so far higher than the same period in 2007,” he added.
The figures are compiled monthly by PKF.
See also PKF Hotel Britain 2007 >>
| JUNE 2008 (preliminary figures) | LONDON (177) | 2008 | 2007 | Movement | | Occupancy | 84.9% | 87.1% | -2.2 points | | Average room rate | £158.51 | £148.14 | +7% | | Revpar | £134.59 | £129.08 | +4.3% |
| REGIONS (545) | 2008 | 2007 | Movement | | Occupancy | 75% | 76.8% | -1.8 points | | Average room rate | £78.56 | £77 | +2% | | Revpar | £58.91 | £59.20 | -0.5% | |
| MAY 2008 | LONDON (177) | 2008 | 2007 | Movement | | Occupancy | 81.1% | 80.3% | +0.8 points | | Average room rate | £138.93 | £133.92 | +3.7% | | Revpar | £112.72 | £107.59 | +4.8% |
| REGIONS (545) | 2008 | 2007 | Movement | | Occupancy | 73.3% | 73.5% | -0.2 points | | Average room rate | £76.08 | £74.46 | +2.2% | | Revpar | £55.78 | £54.77 | +1.8% | |
| APRIL 2008 | LONDON (198) | 2008 | 2007 | Movement | | Occupancy | 82.5% | 79.3% | +3.2 points | | Average room rate | £133.64 | £120.99 | +10.5% | | Revpar | £110.19 | £96.01 | +14.8% |
| REGIONS (636) | 2008 | 2007 | Movement | | Occupancy | 73.7% | 68.1% | +5.6 points | | Average room rate | £73.90 | £70.38 | +5% | | Revpar | £54.44 | £47.97 | +13.5% | |
| MARCH 2008 | LONDON (196) | 2008 | 2007 | Movement | | Occupancy | 79.5% | 81.2% | -1.7 points | | Average room rate | £123.20 | £122.64 | +0.5% | | Revpar | £97.91 | £99.67 | -1.8% |
| REGIONS (642) | 2008 | 2007 | Movement | | Occupancy | 67.3% | 71.1% | -3.8 points | | Average room rate | £71.88 | £72.20 | -0.4% | | Revpar | £48.35 | £51.35 | -5.8% | |
| FEBRUARY 2008 | LONDON | 2008 | 2007 | Movement | | Occupancy | 78.4% | 77.6% | +0.8 points | | Average room rate | £128.98 | £122.08 | +5.7% | | Revpar | £101.06 | £94.77 | +6.6% |
| REGIONS | 2008 | 2007 | Movement | | Occupancy | 69% | 69.4% | -0.4 points | | Average room rate | £72.54 | £70.50 | +2.9% | | Revpar | £50.02 | £48.96 | +2.2% | |
| JANUARY 2008 | LONDON | 2008 | 2007 | Movement | | Occupancy | 71% | 71.9% | -0.9 points | | Average room rate | £124.23 | £118.21 | +5.1% | | Revpar | £88.15 | £85.07 | +3.6% |
| REGIONS | 2008 | 2007 | Movement | | Occupancy | 59.6% | 60.4% | -0.8 points | | Average room rate | £71.41 | £68.69 | +4% | | Revpar | £42.58 | £41.50 | +2.6% | |
| DECEMBER 2007 | LONDON | 2007 | 2006 | Movement | | Occupancy | 73.5% | 73.4% | +0.1 points | | Average room rate | £127.47 | £119.79 | +6.4% | | Revpar | £93.74 | £87.99 | +6.5% |
| REGIONS | 2007 | 2006 | Movement | | Occupancy | 63.2% | 63.2% | 0 points | | Average room rate | £70.33 | £68.13 | +3.2% | | Revpar | £44.43 | £43.06 | +3.2% | |
NOVEMBER 2007
| LONDON | 2007 | 2006 | Movement |
| Occupancy | 85.4% | 86.5% | -1.1 points |
| Average room rate | £143.45 | £13.36 | +6.8% |
| Revpar | £122.53 | £116.28 | +5.4% |
| REGIONS | 2007 | 2006 | Movement |
| Occupancy | 74.3% | 75.3% | -1 point |
| Average room rate | £74.56 | £72 | +3.6% |
| Revpar | £55.42 | £54.28 | +2.1% |
OCTOBER 2007
| LONDON | 2007 | 2006 | Movement |
| Occupancy | 87% | 82.8% | +4.2 points |
| Average room rate | £131.81 | £120.45 | +9.4% |
| Revpar | £114.65 | £99.84 | +14.8% |
| REGIONS | 2007 | 2006 | Movement |
| Occupancy | 77.8% | 77.4% | +0.4 points |
| Average room rate | £74.66 | £71.19 | +4.9% |
| Revpar | £58.05 | £55.13 | +5.3% |
SEPTEMBER 2007
| LONDON | 2007 | 2006 | Movement |
| Occupancy | 86.8% | 87% | -0.2 points |
| Average room rate | £136.58 | £126.92 | +7.6% |
| Revpar | £118.48 | £110.47 | +7.3% |
| REGIONS | 2007 | 2006 | Movement |
| Occupancy | 79.1% | 80.5% | -1.4 points |
| Average room rate | £75.76 | £72.58 | +4.4% |
| Revpar | £59.91 | £58.43 | +2.5% |
AUGUST 2007
| LONDON | 2007 | 2006 | Movement |
| Occupancy | 84.1% | 83.1% | +1 point |
| Average room rate | £116.59 | £106.76 | +9.2% |
| Revpar | £98.01 | £88.76 | +10.4% |
| REGIONS | 2007 | 2006 | Movement |
| Occupancy | 74.2% | 75.3% | -1.1 points |
| Average room rate | £69.34 | £66.71 | 3.9% |
| Revpar | £51.45 | £50.28 | +2.3% |
JULY 2007
| LONDON | 2007 | 2006 | Movement |
| Occupancy | 86.9% | 88.4% | - 1.5 points |
| Average room rate | £130.06 | £127.39 | +2.1% |
| Revpar | £113.08 | £112.72 | +0.3% |
| REGIONS | 2007 | 2006 | Movement |
| Occupancy | 78% | 77.4% | + 0.6 points |
| Average room rate | £72.13 | £70.03 | +3% |
| Revpar | £56.27 | £54.25 | +3.7% |
PKF's hotel survey spans a range of hotels across the country, although there are more chain-operated hotels than independents and more town and city hotels than country and rural properties. Most hotels fall into the three- to four-star brackets except in London, where they range from three to five stars.
DEFINITION OF TERMS
the ratio of total occupied rooms to total available rooms
Average room rate: rooms revenue divided by the total number of guest rooms occupied during the year
Revpar: room occupancy multiplied by the average achieved room rate
