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Easter and warmer weather drives growth in hotel sector

By James Russell: Easter and warmer weather drives growth in hotel sector

May 21, 2014

UK hotels have seen a strong month in April as a result of the Easter weekend and warmer weather, according to preliminary figures released by business advisory and accountancy firm, BDO LLP.

And both the regions and the capital are expanding at similar rates as 3.4million UK holidaymakers planned a ‘staycation’ over the Easter break, according to figures from VisitEngland.

Regions: room yield up 9.1%

Hotels in the regions saw a 9.1% increase in rooms yield to £41.36, when compared to the same period last year, while the average room rate rose to £55.91, a 7.9% increase on last year. Occupancy also increased by 1.2% to 74%.

London: room yield up 8.2%

Operators in London also saw a boost in rooms yield to £95.58, up 8.2% on last year. The average room rate increased 7.4% to £114.93 and at 83.2% occupancy was 0.7% higher than in the same period last year.

Confidence increasing

Robert Barnard, partner at BDO LLP, commented: “Confidence in the UK hotels sector is increasing as month on month data shows a steady growth trend. The overall outlook for 2014 appears to be promising, however there might be some bumpy months ahead as the recent dips in economic growth in some EU countries demonstrate that there is still some uncertainty.

“While the corporate market is usually down during the Easter period, the leisure market has bounced back as the nation made the most of the four day break. The good weather will be behind the increase in average room rate in the regions, while increased visitation and poor performance in 2013 will have driven the increase in the capital.”

Preliminary data for April 2014

Rooms department 2014 2013 % change
UK Regional hotels
Average daily room rate per occupied room £55.91 £51.84 7.9%
Average daily room occupancy 74.0% 73.1% 1.2%
Average daily rooms yield per available room £41.36 £37.91 9.1%
Approximate number of rooms per day 93,300
London hotels
Average daily room rate per occupied room 114.93 107.00 7.4%
Average daily room occupancy 83.2% 82.6% 0.7%
Average daily rooms yield per available room £95.58 £88.38 8.2%
Approximate number of rooms per day 31,850

 

About BDO hotels trend surveys

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.

For more information click here

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