London hotels had a solid month in May but continued to lag behind their regional counterparts, according to preliminary hotel figures released today by business advisory and accountancy firm, BDO LLP.
London and Regions: room rate down, occupancy up, yield up
London hotels posted a 0.9% year-on-year reduction in room rate to £136.27, compared with £137.45 12 months ago, and a 1.9% increase in occupancy from 83.6% to 85.2%. This resulted in rooms yield growth of 1.0% from £114.99 to £116.12.
In the regions, a 1.7% drop in room rate to £60.32, compared with £61.38 in May 2012, was offset by a 4.1% rise in occupancy from 72.7% to 75.7%. Rooms yield consequently improved by 2.3% from £44.65 to £45.67.
Robert Barnard, partner at BDO LLP, commented: “It is encouraging to see operators across the country posting year-on-year growth in rooms yield. Hotels in London, in particular, will be relieved that they are back in the black after several difficult months.
“The market remains challenging but the sector is, as always, putting up a strong fight. Hotels are being canny and using a wide range of tactics, including selective price discounting, to reinforce revenues at a time when the economy is only just starting to show signs of improvement.”
Preliminary data for May 2013
| Rooms department | 2013 | 2012 | % change |
| UK Regional hotels | |||
| Average daily room rate per
occupied room |
£60.32 | £61.38 | -1.7% |
| Average daily room occupancy | 75.7% | 72.7% | 4.1% |
| Average daily rooms yield per
available room |
£45,67 | £44.65 | 2.3% |
| Approximate number of rooms
per day |
92,800 | ||
| London hotels | |||
| Average daily room rate per
occupied room |
£136.27 | £137.45 | -0.9% |
| Average daily room occupancy | 85.2% | 83.6% | 1.9% |
| Average daily rooms yield per
available room |
£116.12 | £114.99 | 1.0% |
| Approximate number of rooms
per day |
30,650 |
Final data for April 2013
| Rooms department | 2013 | 2012 | % change |
| UK Regional hotels | |||
| Average daily room rate per
occupied room |
£57.68 | £57.68 | 0.0% |
| Average daily room occupancy | 72.6% | 68.7% | 5.7% |
| Average daily rooms yield per
available room |
£41.85 | £39.64 | 5.6% |
| Approximate number of rooms
per day |
100,700 | ||
| London hotels | |||
| Average daily room rate per
occupied room |
£145.39 | £146.82 | -1.0% |
| Average daily room occupancy | 83.2% | 83.8% | -0.7% |
| Average daily rooms yield per
available room |
£120.96 | £122.96 | -1.6% |
| Approximate number of rooms
per day |
37,600 |
BDO’s hotel trends surveys feature a broad range of hotels across the country although mainly in the 3 and 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 and 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).