Consumer optimism has helped hoteliers beat the usual New Year slump in January, resulting in the strongest figures across London and the regions since 2010, according to preliminary figures released today by business advisory and accountancy firm BDO.
Regional hotels saw a 7.9% rise in average room rate to £55.81, while occupancy increased by 4.5% to 59.7%. Rooms yield was up a stellar 12.7% to £33.30, on the same period in 2014.
Hotels in the capital also saw strong growth in rooms yield – up 8% to £74.98. This was the result of a high average room rate (£104.86 – up 5%) on the back of strong demand, as occupancy was up 2.8% to 71.5%.
For the first time in years, lower petrol costs, the supermarket price wars and an increase in wage growth have contributed to more cash in consumer pockets which resulted in a healthy increase in tourism, especially domestic.
Make hay whilst the sun shines
Robert Barnard, Partner at BDO, commented:
“The low inflation rate spells good news for hoteliers as consumers can spend more on non-essentials like travel and tourism. It has resulted in the strongest January since 2010. While it’s likely that low inflation and interest rates will continue to be the trend, certainly for the first part of 2015 at least, hoteliers should take this opportunity to make hay while the sun shines.
“After a record year of about 35m visitors to the UK in 2014, the prospect for the future remains robust. Despite the ongoing woes of the Eurozone, ForwardKeys recently claimed that visits from China and Hong Kong are showing strong growth for the months ahead. In addition, with inflation falling to 0.4% in January and the UK economy forecast to grow at its fastest rate since 2006, hoteliers should make the most of this welcome opportunity.”
Preliminary data for January 2015
| Rooms department | 2015 | 2014 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | 55.81 | 51.72 | 7.9% |
| Average daily room occupancy | 59.7% | 57.1% | 4.5% |
| Average daily rooms yield per available room | 33.30 | 29.54 | 12.7% |
| Approximate number of rooms per day | 89,177 | 89,218 | |
| London hotels | |||
| Average daily room rate per occupied room | 104.86 | 99.86 | 5.0% |
| Average daily room occupancy | 71.5% | 69.5% | 2.8% |
| Average daily rooms yield per available room | 74.98 | 69.45 | 8.0% |
| Approximate number of rooms per day | 30,209 | 30,002 |
Final data for December 2014
| Rooms department | 2014 | 2013 | % change |
| UK Regional hotels | |||
| Average daily room rate per occupied room | £58.35 | £54.35 | 7.4% |
| Average daily room occupancy | 65.8% | 62.8% | 4.8% |
| Average daily rooms yield per available room | £38.39 | £34.14 | 12.4% |
| Approximate number of rooms per day | 90,200 | ||
| London hotels | |||
| Average daily room rate per occupied room | £132.60 | £125.43 | 5.7% |
| Average daily room occupancy | 79.7% | 76.5% | 4.2% |
| Average daily rooms yield per available room | £105.68 | £95.93 | 10.2% |
| Approximate number of rooms per day | 36,900 |
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