London hotel occupancy and room rates ‘still at impressive levels’ despite mixed November results

Hotels in London are still seeing "impressive" occupancy and room rate levels despite a dip in performance across the sector last month.

That is according to the latest figures from PKF Hotel Consultancy Services, which show that London hotels saw room yields fall by 4.6 per cent to £112.96 in November, compared with £118.46 for the same month last year.

This was the result of a 3.4 per cent drop in room rate to £136.20 combined with a 1.3 per cent reduction in occupancy to 82.9 per cent.

However, Robert Barnard, partner for hotel and hospitality at PKF, pointed out that these figures are still high compared to historical levels, something that could mean London hotel recruitment levels are also set to stay high.

"Operators in London have had a less than stellar month, but there's no need for panic as occupancy and room rate are still at impressive levels," he said.

"London's fundamentals remain strong so this is unlikely to be much more than a temporary blip for the capital's hotel market."

Meanwhile, hotels outside of the capital delivered a solid performance in November, with room yields rising by 0.5 per cent to £41.71, up from £41.49 this time last year.

This came on the back of a 0.1 per cent improvement in occupancy to 70 per cent and a 0.4 per cent increase in room rate to £59.62.

"This is another decent set of results from hotels in the regions," commented Mr Barnard.

"Skilful management and the lack of any meaningful new development are helping to keep rooms yield in positive territory despite the dreary economic outlook."

It follows last week's release of figures from PricewaterhouseCoopers which revealed that the luxury hotel market in London has seen rapid expansion in recent years.

Nearly 4,000 new luxury rooms have been added to the London hotel market since 2005, an increase of 33 per cent, while five star hotels now account for around 12 per cent of the capital's rooms.

Berkeley Scott is a specialist recruitment agency providing hotel management solutions