The performance of the UK hotel sector continued its upward trajectory, ending the year on a positive note, according to preliminary figures released today by business advisory and accountancy firm, BDO LLP.
Room yields
Operators in the regions saw their room yields surge ahead, followed by those in London giving further evidence that a sustained recovery in the sector and the economy as a whole is gaining a foothold.
Rooms yield in the regions increased by 9.9% year-on-year to £35.56, compared to £32.35 in December 2012. This was the result of a 4.7% rise in room rate from £53.99 to £56.54, combined with a 5% improvement in occupancy from 59.9% to 62.9%.
In the capital, rooms yield rose to £95.44, a 5.9% year-on-year increase. This was driven by a 5.5% improvement in room rate from £118.79 to £125.31 and a 0.4% rise in occupancy to 76.2%, compared with 75.8% a year ago.
Strong and encouraging results
Robert Barnard, partner at BDO LLP, commented: “This is a strong and encouraging set of results with which to end the year. Growth in the regions seems to be leading the sector out of recession, ending the year in positive territory in terms of room yield and only marginally down on average room rate. This is the first year since 2005 where the regions have led the charge over the year as a whole and it will be very interesting to see if this trend is continued in 2014.
“London also enjoyed a strong end to the year despite the difficult start when the city was managing the oversupply hangover from the Olympics. Although the strong second half of the year didn’t quite make up the lost ground, improved sentiment surrounding the economy and a strengthening corporate market bodes well for 2014.”
Preliminary data for December 2013
| Rooms department | 2013 | 2012 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £56.54 | £53.99 | 4.7% |
| Average daily room occupancy | 62.9% | 59.9% | 5.0% |
| Average daily rooms yield per available room | £35.56 | £32.35 | 9.9% |
| Approximate number of rooms per day | 78,500 | ||
| London hotels | |||
| Average daily room rate per occupied room | £125.31 | £118.79 | 5.5% |
| Average daily room occupancy | 76.2% | 75.8% | 0.4% |
| Average daily rooms yield per available room | £95.44 | £90.12 | 5.9% |
| Approximate number of rooms per day | 32,800 |
Final data for November 2013
| Rooms department | 2013 | 2012 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £62.06 | £60.17 | 3.1% |
| Average daily room occupancy | 72.7% | 69.9% | 4.0% |
| Average daily rooms yield per available room | £45.14 | £42.10 | 7.2% |
| Approximate number of rooms per day | 87,450 | ||
| London hotels | |||
| Average daily room rate per occupied room | £150.49 | £145.05 | 3.8% |
| Average daily room occupancy | 84.2% | 83.5% | 0.8% |
| Average daily rooms yield per available room | £126.71 | £121.15 | 4.6% |
| Approximate number of rooms per day | 38,350 |
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).
About BDO
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.
The combined fee income of all the BDO Member Firms, including the members of their exclusive alliances, was $6.45 billion in 2013. The global network provides business advisory services in 144 countries, with more than 56,000 people working out of 1,264 offices worldwide.