Business travel coupled with good weather in June has continued to boost regional hotels’ performance, according to preliminary figures released by business advisory and accountancy firm, BDO LLP.
Regional hotels
June was another strong month in the growth trend experienced by regional hotels recently. While UK tourists made the most of the warm weather, sustained economic growth began to drive business travel with meetings, conferences and events increasing in the regions. As a result, rooms yield was up by 7.2% to £50.05 and room rates up to £63.17, an increase of 6.3% on the same time last year. Occupancy also increased by 0.9% from June 2013.
London
London continued to grow throughout the first half of 2014, with the only exception of May, where the comparison with the UEFA Champions League Final weighed slightly on the performance. However, June results show a return to a steady growth, with rooms yield increased by 3.1% to £112.04 when compared to the same period last year. Average room rate was also up 3.4% to £128.84, while occupancy remained fairly stable at 87%.
Return of the corporate market
Robert Barnard, partner at BDO LLP, commented:
“The return of the corporate market, and more generally, sustained economic growth should continue to positively influence both London and regional performance.
“London has recently topped a list of the most popular global city destinations* and the latest ONS results indicate that visits to the UK by overseas residents were up 11.7% in the first quarter of the year**. Data such as this highlights the UK’s attractiveness as a destination for overseas visitors while British tourists are still opting to stay at home.”
Preliminary data for June 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £63.17 | £59.43 | 6.3% |
| Average daily room occupancy | 79.2% | 78.5% | 0.9% |
| Average daily rooms yield per available room | £50.05 | £46.69 | 7.2% |
| Approximate number of rooms per day | 87,350 | 87,350 | |
| London hotels | |||
| Average daily room rate per occupied room | £128.84 | £124.65 | 3.4% |
| Average daily room occupancy | 87.0% | 87.2% | -0.3% |
| Average daily rooms yield per available room | £112.04 | £108.72 | 3.1% |
| Approximate number of rooms per day | 22,300 | 22,150 |
Final data for May 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £62.15 | £58.44 | 6.3% |
| Average daily room occupancy | 76% | 75.1% | 1.2% |
| Average daily rooms yield per available room | £47.23 | £43.93 | 7.5% |
| Approximate number of rooms per day | 92,300 | ||
| London hotels | |||
| Average daily room rate per occupied room | £140.48 | £140.42 | 0% |
| Average daily room occupancy | 83.1% | 85.1% | -2.4% |
| Average daily rooms yield per available room | £116.74 | £119.55 | -2.4% |
| Approximate number of rooms per day | 35,150 |
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.
* 2014 Mastercard Global Destination Cities Index
** ONS Overseas Travel & Tourism Provisional Results, Q1 2014
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