A year on from the 7/7 London bombings, the capital hotel market was as hot as the heatwave this July.Hotels showed the highest ever room rate, average occupancy and rooms yield, according to the latest figures from PKF hotel consultancy services.
Rooms yield for London hotel rooms was £113.32, a staggering 34.4% up on July 2005 figures (and 26.9% up on July 2004). This performance was fuelled by the combination of an 18.1% increase in the daily room rate to £127.84 from £108.28 in 2005 and a 13.9% increase in occupancy to 88.6%from 77.8% last July.
Regional hoteliers are also enjoying a good summer and increased their room rates by 3.7% to £69.45 compared with £66.97 in July 2005. A modest rise in the occupancy rates from 76.9% in 2005 to 77.5% also helped to lift rooms yield by 4.5% to £53.85, the best of the Millennium to date.
Robert Barnard, partner for hotel consultancy services at PKF, said: “After a very strong first half of the year, we expected the good news to continue in July. We also knew that the drop in occupancy levels in London hotels in the aftermath of last summer’s terrorist attacks would accentuate any improved performance this July. However, the scale of the growth in the London market is almost jaw-dropping and confirms both the rock-solid strength and dynamism of the sector.
“The improvement in the regional hotel market in July is also gratifying, particularly as the peak summer holiday season didn’t start until the last week. Hopefully, with the chaos at UK airports and the continuation of the good weather well into August, we can look forward to some record-breaking August figures.”