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US and UK hotels continue to suffer

US and UK hotels continue to suffer

Hotel room rates, occupancy levels and revenues in both the US and the UK continued to fall for the last three months of the year.

In the US, average daily rate slumped 5.9 percent in the week 6-12 December compared to the same period in 2008 to $96.04, according to data from STR.

The industry’s occupancy level fell 2.9 percent compared to 2008 to 48.1 percent.

And revenue per available room (revPAR) for the week decreased 8.6% year-on-year to finish at $46.22.

Among the hotel chain segments, the ‘upper upscale’ segment and the luxury segment were the only ones to report increases in any of the three metrics. 


The upper upscale segment’s occupancy rose 3.6% to 62.6%, followed by the luxury segment with a 0.7 percent increase to 61.1 percent.

Meanwhile in the UK, combined data for October and November from PKF Hotel Consultancy Services showed that average room rate was down 7.8% from £65.66 in 2008 to £60.52 this year.

Occupancy levels also dropped in the UK, down 3.5% from 71.4% to 68.9%.

Rooms yield figures were down 11.1% year on year

In London, average room rate fell from £121.61 in 2008 to £119.66 in 2009.

However, London bucked the downward trend with occupancy levels climbing 5.9% increase over the two months from 82.0% in 2008 to 86.9% in 2009.

Overall, this meant London hoteliers managed a 4.2% increase in rooms yield to £103.94 over October and November.

Robert Barnard, partner for Hotel Consultancy Services at PKF, commented, “This year has been a difficult one for the leisure and hotel industry.

“This is not surprising given the current recessionary climate and average achieved room rate has been the main contributory factor.

“On a positive note, occupancy remains strong in certain cities and hoteliers should take heart from this.”