Regional hotels continued to buck the trend in May 2015 as domestic tourism remained high over the bank holidays, according to preliminary figures released by business advisory and accountancy firm BDO.
With two bank holiday weekends in May, regional hoteliers were the clear winners as domestic tourism increased. As a result, average room rate in the regions rose by 5.3% to £64.32 in May, and occupancy was up by 2.2% to 77.4%. Rooms yield increased by 7.7% to £49.77.
London hotels still experienced growth, albeit more modestly than their regional counterparts. Average room rate increased to £126.09, up 1.6% on May 2014. Occupancy grew by 1.2% to 83.9% and rooms yield was up by 2.8% at £105.82.
A recent report from the National Audit office also showed that the Britain is GREAT marketing campaign, designed to bring more tourists into Britain, has delivered a £1.2b return on investment since it was launched in February 2012.
Robert Barnard, partner at BDO, said:
“The leisure industry is going from strength to strength as the economy improves. With low interest rates and oil prices, consumers have more money to spend on leisure. Couple this with a rise in domestic tourism and a successful showcase of what the UK has to offer in foreign markets, it looks like this trend is here for a while. And although the regions may benefit from this, London isn’t too far behind.
“Hoteliers should bear in mind that the new post-recession economy is very much consumer-led. The saying ‘make hay while the sun shines’ is very appropriate, but they should also be preparing for bumpy times ahead with uncertainty in Europe around Greece.”
Preliminary data for May 2015
| Rooms department | 2015 | 2014 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £64.32 | £61.09 | 5.3% |
| Average daily room occupancy | 77.4% | 75.6% | 2.2% |
| Average daily rooms yield per available room | £49.77 | £46.23 | 7.7% |
| Approximate number of rooms per day | 84,200 | 84,300 | |
| London hotels | |||
| Average daily room rate per occupied room | £126.09 | £124.07 | 1.6% |
| Average daily room occupancy | 83.9% | 82.9% | 1.2% |
| Average daily rooms yield per available room | £105.82 | £102.93 | 2.8% |
| Approximate number of rooms per day | 27,400 | 27,350 |
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