Improved consumer confidence and a dry December have resulted in another bumper month as hoteliers across the UK saw double digit grow in rooms yield, according to preliminary figures released today by business advisory and accountancy firm BDO.
December room rate at hotels in the capital saw an 8.1% increase to £116.35. Occupancy was also up to 79.8%, an increase of 4.5%. As a result, rooms yield grew by 13% when compared to the same period in 2013.
A similar picture was reflected across the regions, as hotels outside London saw a 5.4% rise in occupancy to 66.7%. Average room rate was also up 8.1% to £54.97, with rooms yield being up 13.9% to £36.64.
Consumer confidence
It has been widely reported that consumer confidence in the UK is at a high, boding well for the wider economy in 2015. A recent study by Visit Britain predicts that 2015 will be a record year for the UK’s tourism industry.
Robert Barnard, partner at BDO LLP, comments:
“December can traditionally be a quiet month for hotels as corporate travel dies down, the UK receives fewer overseas visitors and hotel stays are generally combined with shopping trips, family visits and post-Christmas party convenience. It’s therefore encouraging to see strong figures for December this year.
“While the dry weather no doubt played a part, this can largely be put down to growing consumer confidence, coupled with falling energy and petrol prices resulting in low inflation. People are more confident with their personal finances, resulting in increased spend on travel and tourism. And with this trend is only expected to continue, hotel owners in London and in the regions can expect a bright outlook for 2015.”
Preliminary data for December 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £54.97 | £50.86 | 8.1% |
| Average daily room occupancy | 66.7% | 63.2% | 5.4% |
| Average daily rooms yield per available room | £36.64 | £32.17 | 13.9% |
| Approximate number of rooms per day | 72,450 | 72,750 | |
| London hotels | |||
| Average daily room rate per occupied room | £116.35 | £107.59 | 8.1% |
| Average daily room occupancy | 79.8% | 76.3% | 4.5% |
| Average daily rooms yield per available room | £92.81 | £82.16 | 13.0% |
| Approximate number of rooms per day | 21,550 | 21,600 |
Final data for November 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £60.76 | £56.62 | 7.3% |
| Average daily room occupancy | 75.8% | 72.8% | 4.1% |
| Average daily rooms yield per available room | £46.04 | £41.28 | 11.5% |
| Approximate number of rooms per day | 86,400 | ||
| London hotels | |||
| Average daily room rate per occupied room | £138.52 | £135.24 | 2.4% |
| Average daily room occupancy | 85.9% | 83.5% | 2.9% |
| Average daily rooms yield per available room | £118.99 | £112.93 | 5.4% |
| Approximate number of rooms per day | 35,250 |
BDO’s hotel trends surveys feature a broad range of hotels across the country although mainly in the 3 – 4 star categories and featuring rather more chain operated hotels than those operated independently. While there are a fair number of hotels in country and rural areas, there is a predominance of hotels in towns and cities. In London, supply featured is mainly in the 3 –5 star categories. The definitions of the key terms used in the surveys are as follows:
- Room occupancy: the ratio of total occupied rooms to total available rooms
- Average achieved room rate (AARR): rooms revenue divided by the total number of guest rooms occupied during the year
- Rooms yield: room occupancy multiplied by the average achieved room rate (also known as RevPar).
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