Hotels across the country fared relatively well in November compared to 2010, with occupancy holding up and only a slight drop in room rate.
Preliminary hotel figures released by PKF Hotel Consultancy Services found that rooms yield in London remained flat at around £117.50, as a 2% increase in room rate to £139.20 in November 2010 was cancelled out by a corresponding decline in occupancy from 86.0% a year ago to 84.4%.
In the regions, a 0.9% rise in occupancy to 70.4% was more than offset by a 3.1% drop in room rate from £62.77 to £60.85. The result was a 2.2% fall in rooms yield to £42.83, compared with £43.78 twelve months ago.
Robert Barnard, partner for Hotel Consultancy Services at PKF, said: “These figures are unlikely to bring much festive cheer to the sector. However, when viewed against a backdrop of plunging business and consumer confidence, lacklustre retail sales for much of the last quarter and the ongoing concerns about the future of the euro, these results suggest that hoteliers are battling the storms more successfully than many other parts of the economy.
“Looking at the positives, it is encouraging to note that London hotels have successfully managed room rates whilst maintaining occupancy at above 80%. Occupancy in the regions has increased slightly, albeit at the expense of room rate.
“Let’s be honest: the sector is facing a challenging operating environment that is unlikely to improve significantly anytime in the near future. However, hotel managers appear to have learnt the lessons from 2008-9 and are much better equipped to respond effectively this time around.”
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By James Stagg