By Daniel Hunter
UK hotels enjoyed another strong month in August, according to preliminary figures released by business advisory and accountancy firm, BDO LLP.
In the regions, a 0.3% year-on-year rise in room rate to £60.43, compared with £60.26 in August 2012, coupled with a 7.2% increase in occupancy from 73.8% to 79.2%, resulted in a 7.5% improvement in rooms yield from £44.53 to £47.87.
In London, occupancy increased by 5.4% to 85.9%, compared with 81.4% a year earlier, but room rate dropped by 15.5% from £147.63 to £124.70. As a result, rooms yield fell by 10.9% from £120.22 to £107.13. However, the August 2012 figures were boosted considerably by the Olympics and Paralympics, which helped the capital’s hotels to enjoy one of their strongest months in decades.
“This latest set of strong results suggests that momentum is beginning to build in the UK hotel sector. The industry was badly hit when the economy first hit trouble, and it appears that hotels are among the early beneficiaries of the nascent economic recovery," Robert Barnard, partner at BDO LLP, commented.
“Hotels in London posted a 44.4% rise in rooms yield this time last year thanks to the Olympics and Paralympics, so a 10.9% decline in August 2013 should be viewed in a very positive light.
“In the regions, operators are able to increase occupancy by over 7% without having to resort to price cuts, which is an encouraging sign.”
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