The UK hotel sector is in good health one year on from the Olympics
The UK hotel sector is in good health one year on from the Olympics, according to preliminary hotel figures for the month of July released today by business advisory and accountancy firm, BDO LLP.
In the regions, a 1.4% year-on-year reduction in room rate to ?59.09, compared with ?59.92 in July 2012, was more than offset by a 6.7% increase in occupancy from 75.3% to 80.4%.? This resulted in a 5.2% rise in rooms yield from ?45.16 to ?47.51.
The picture in London is complicated by the comparison with the period marking the start of the 2012 Games.? At ?138.20, room rate was ?13.6% lower this year but occupancy increased by 10.0% from 79.2% to 87.1%.? Rooms yield consequently fell by 5.0% to ?120.36, compared with ?126.88 12 months ago.
Robert Barnard, partner at BDO LLP, commented: ?This is another strong showing by regional operators – their impressive performance during the first half of the year shows no signs of slowing down.
?I?d caution against reading too much into the drop in rooms yield in London, because the comparison is against the month in which the city began hosting the Olympics.? The fact that occupancy is almost 90% is a better indicator of the capital?s current strength.
?Looking behind the numbers,?the UK hotel sector appears to be in good shape to take advantage of the nascent economic recovery.
?The sector?s fundamentals are strong. Some 12 months on from the Olympics, London?s position as a world class business and leisure destination is stronger than ever.? Outside the capital, the lack of new development in recent years has helped operators to manage room rate and occupancy during periods of softening demand.
?It?s important not to get carried away, but the sector has reason to be increasingly optimistic about its future prospects.?