Hotels in the UK regions and capital have experienced a successful month in July with high occupancy, and average room rate, according to preliminary figures released today by business advisory and accountancy firm, BDO LLP.
Regions
Occupancy in regional hotels increased by 2.9% to 82.8% as the Commonwealth Games in Glasgow and the British Open in Liverpool brought an influx of spectators. As occupancy was high, room rate in the regions increased by 11.7% to £62.56. As a result, rooms yield stood at £51.79, up 14.9% on last year.
London
Despite the recent increase in supply with a number of high-end hotel openings, such as the Shangri-La at the Shard and Firmdale’s Ham Yard, London continued to perform well with a high occupancy rate at 86.8%. Reflecting the growth of their regional counterparts, hotels in the capital experienced a 2.3% increase in room rate to £125.58, and a 1.9% increase to £109.01 in rooms yield.
Continuing upward trend
Robert Barnard, partner at BDO LLP commented:
“We know that major sporting events such as the Commonwealth Games always create a high demand for rooms and this has certainly been the case in the regions last month. London hotels have also had a busy month and the recent openings of luxury hotels show that demand for high-end hospitality in the capital maintains its strong growth pattern.
“Strong occupancy is great news for the hotels sector and the knock-on effect on room rate hints at growth in the year ahead. UK hoteliers can feel confident about the health of the industry, as the figures continue to show an upward trend.”
Preliminary data for July 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £62.56 | £56.03 | 11.7% |
| Average daily room occupancy | 82.8% | 80.4% | 2.9% |
| Average daily rooms yield per available room | £51.79 | £45.09 | 14.9% |
| Approximate number of rooms per day | 98,950 | 98,900 | |
| London hotels | |||
| Average daily room rate per occupied room | 125.58 | £122.78 | 2.3% |
| Average daily room occupancy | 86.8% | 87.1% | -0.4% |
| Average daily rooms yield per available room | £109.01 | £106.96 | 1.9% |
| Approximate number of rooms per day | 33,300 | 33,300 |
Final data for June 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £64.75 | £61.18 | 5.8% |
| Average daily room occupancy | 79.1% | 78.3% | 1% |
| Average daily rooms yield per available room | £51.22 | £47.94 | 6.8% |
| Approximate number of rooms per day | 97,000 | ||
| London hotels | |||
| Average daily room rate per occupied room | £151.48 | £149.03 | 1.6% |
| Average daily room occupancy | 87.1% | 88.5% | -1.5% |
| Average daily rooms yield per available room | £131.94 | £131.85 | 0.1% |
| Approximate number of rooms per day | 35,050 |
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.
About BDO LLP
Accountancy and business advisory firm, BDO LLP, is the UK member firm of the BDO International network. In April 2013, BDO LLP merged with PKF (UK) LLP to form a new force in the mid-market, employing 3,500 people across the UK.
BDO LLP has a clear ambition to be the firm known in the market for exceptional service delivered by empowered people. The 2013 Mid Market Monitor analysis shows that BDO is the market leader for client satisfaction for the second year running – outperforming all its major competitors and the only organisation to see an improvement over the past four years.
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