Hotels across the UK basked in the wider economic stability as corporate travel bumped up October growth figures in London and the regions, according to preliminary figures released by business advisory and accountancy firm BDO.
London
London hotels saw a 1.7% increase to £124.63 in room rate in October 2014, while occupancy grew by 1.1%, to 88.1%, resulting in a Rooms yield increase of 2.8% to £109.85.
Regions
Regional hotels more than reflected the capital’s strong figures and experienced a 6% increase in room rate, to £59.76. At 80.4%, occupancy increased by 4.3% year-on-year. As a result, the regions saw rooms yield hit double digit growth up 10.5%.
October is the prime time for corporate travel with conferences and corporate events in full swing. Increased corporate travel reflects growth in the wider economy as business confidence returns and attendance at these types of events is on the up.
Confidence is high
Robert Barnard, partner at BDO LLP, commented:
“We’ve seen vast improvements in the UK economy over the last year, as businesses held momentum for the first time in years. Confidence is high and is reflected by the increase in conference attendance and events – which in turn, has driven the growth in the hotels sector.
“Since the beginning of 2014, a number of environmental and economic factors have created the perfect setting for UK hotels to thrive – from the Glasgow Commonwealth Games, to the warm summer and the continued rise of the ‘staycation’. This is good news for hoteliers in London and the regions and should provide a strong foundation to build on in the coming year.”
Preliminary data for October 2014
October 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £59.76 | £56.40 | 6.0% |
| Average daily room occupancy | 80.4% | 77.0% | 4.3% |
| Average daily rooms yield per available room | £48.02 | £43.46 | 10.5% |
| Approximate number of rooms per day | 97,950 | 98,200 | |
| London hotels | |||
| Average daily room rate per occupied room | £124.63 | £122.58 | 1.7% |
| Average daily room occupancy | 88.1% | 87.1% | 1.1% |
| Average daily rooms yield per available room | £109.85 | £106.87 | 2.8% |
| Approximate number of rooms per day | 32,500 | 32,650 |
Final data for September 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £66.50 | £60.71 | 9.5% |
| Average daily room occupancy | 83.6% | 79.9% | 4.6% |
| Average daily rooms yield per available room | £55.65 | £48.53 | 14.7% |
| Approximate number of rooms per day | 90,450 | ||
| London hotels | |||
| Average daily room rate per occupied room | £146.44 | £147.75 | -0.9% |
| Average daily room occupancy | 89.2% | 87.0% | 2.5% |
| Average daily rooms yield per available room | £130.62 | £128.60 | 1.6% |
| Approximate number of rooms per day | 33,100 |
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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