Hotels across the UK are experiencing a building "momentum", enjoying another solid month in August, according to new figures by accountancy firm BDO.
The data revealed that room occupancy had risen by 7.2 per cent regionally in August, compared to the same month last year, while occupancy also grew by 5.4 per cent in London. Regionally, room rates also rose by 0.3 per cent over the 12 months to £60.43, meaning that room yields increased by 7.5 per cent from £44.53 to £47.87. On the other hand, room rates fell by 15.5 per cent in the capital city, plummeting from £147.63 to £124.70, and thus room yields decreased by 10.9 per cent for investors here to £107.20.
Generally, the figures have been boosted since last year, with industry analysts suggesting that the 'Olympics effect' is seemingly continuing across the UK. With regional operators able to increase room occupancy without having to make any price cuts, this is all good news for the potential creation of hospitality jobs in the future.
BDO partner Robert Barnard said: “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. Hotels in London posted a 44.4 per cent rise in rooms yield this time last year thanks to the Olympics and Paralympics, so a 10.9 per cent decline in August 2013 should be viewed in a very positive light."
These findings follow separate figures from the trivago Hotel Price Index (tHPI), which revealed that hotel prices in London increased dramatically in September, in line with London Fashion Week. An average night in the capital cost six per cent more in September, at £172, compared to August.
Berkeley Scott is a leading London hotel recruitment agency.