London hotels have achieved their highest occupancy rate for the month of August since 1999, according to preliminary figures released today by business advisory and accountancy firm, BDO LLP.
Occupancy up 3.4% in August to 87.3%
Occupancy figures for the UK’s capital increased by 3.4% in August 2014, to 87.3%, while room rate was up 3.1% to £117.55. As a result, rooms yield grew by 6.7% to £102.66. The boost in occupancy can be attributed to increased foreign tourism in London, and mirrors record August passenger figures at Heathrow and Gatwick airports.
Regional hotels also strong at 82.2%
Regional hotels also had a strong month and August marked the fourth month of double digit growth since the beginning of the year. Rooms yield was up 12.1% to £50.16, when compared to the previous year. Occupancy remained high at 82.2%, an increase of 3.9%. The strong demand also contributed in pushing room rate up 7.9% to £61.00.
Strongest position for a long time
Robert Barnard, partner at BDO LLP commented:
“August has been an all-round successful month for hotels in London and the regions. The buzz of UK tourism has firmly kept the momentum experienced last year and hoteliers are reaping the rewards as both overseas and domestic visitors make the most of all that the country has to offer. Interestingly, London has experienced the highest occupancy for August in 15 years – a sure sign that the UK hotels sector is now in the strongest position for a long time.”
Preliminary data for August 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £61.00 | £56.52 | 7.9% |
| Average daily room occupancy | 82.2% | 79.1% | 3.9% |
| Average daily rooms yield per available room | £50.16 | £44.73 | 12.1% |
| Approximate number of rooms per day | 85,900 | 85,850 | |
| London hotels | |||
| Average daily room rate per occupied room | £117.55 | £113.97 | 3.1%% |
| Average daily room occupancy | 87.3% | 84.4% | 3.4% |
| Average daily rooms yield per available room | £102.66 | £96.24 | 6.7% |
| Approximate number of rooms per day | 29,300 | 29,450 |
Final data for July 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £64.30 | £57.86 | 11.1 |
| Average daily room occupancy | 82.9% | 80.5% | 3.0% |
| Average daily rooms yield per available room | £53.28 | £46.59 | 14.4% |
| Approximate number of rooms per day | 101,550 | ||
| London hotels | |||
| Average daily room rate per occupied room | £139.23 | £137.39 | 1.3% |
| Average daily room occupancy | 86.1% | 87.0% | -1.0% |
| Average daily rooms yield per available room | £119.88 | £119.50 | 0.3% |
| Approximate number of rooms per day | 39,500 |
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.
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