The UK hotels sector saw signs of a recovery in August, as occupancy rates rose in both London and the provinces, according to the latest figures from consultancy services firm PKF.
London, buoyed by the good weather and an increase in both US and European visitors, saw a year-on-year increase in occupancy rates of 1.6 percentage points to 79.1%, while occupancy outside London increased by 0.2 percentage points to 73.1%.
However, the average room rate in London fell by 5% to £84.31, which in turn pushed average daily yield rates down 3% to £66.72. Outside London, the average room rate fell by the lesser margin of 0.2% to £57.56, helping rooms yield rise by 0.1%.
Melvin Gold, managing director hotel consultancy services, said the pattern of occupancy rates leading room rates was reminiscent of the early stages of a recovery, although he advised hoteliers to greet the figures with "cautious optimism".
Gold said the situation had become "progressively less bad" rather than good, pointing out that room rates were still heavily under pressure and the occupancy rate increases were "not particularly earth-shattering". Gold also warned about the potential impact of interest rate rises and tax hikes.