The UK hotel industry is definitely on the way up, according to PKF hotel consultancy services…
The UK hotel industry is definitely on the way up, according to PKF hotel consultancy services . Investments are at record levels whilst trading performances of both London and regional UK hotels are approaching levels last seen five years ago, as revealed in PKF’s annual Hotel Britain report, launched today.
Hotel Britain, in its second year, offers a comprehensive look at the domestic market. It includes an analysis of performance levels across the geographically distinct markets, takes an in- depth look at all types of accommodation and considers the external factors that have affected the UK hotel industry – and those that will.
2004’s performance levels were encouraging, showing that things are definitely getting better for UK hoteliers. Average daily rooms yield was up 10.1% to £56.64 for the whole of the UK. In London the figure was even higher – up 11.8% to £79.54, whilst outside London the increase was 5.1% to £45.73.
Occupancy growth was strongest in London, rising 2.8% to 76.3%, but the regions easily kept their head above water, pushing occupancy up 1.3% to 71.4%.
In London, average room rate improved by 7.8% to £104.28, whilst outside the capital it increased by 3.3% to £64.06.
Gatwick was the area that saw the highest rooms yield growth (up 13.8%) followed by Sheffield (up 10.2%) and Reading (up 9.7%). However, when it came to occupancy, the Heathrow and Slough area reported the strongest growth (up 5.9%), followed jointly by Gatwick and Sheffield (both up 4.5%). Gatwick also saw the highest average room rate growth (up 7.7%), closely followed by Bristol (up 7.6%) and then Reading (up 5.8%).
Robert Barnard, partner and head of hotel consultancy services at PKF, said: “It looks like the worst is over for the UK hotel industry following a series of damaging geopolitical events since 2001. Investments are at record levels whilst trading performances of both London and regional UK hotels are finally getting back to levels last seen five years ago. The short-term outlook is very promising as existing investors continue to pour money into the industry, while new entrants want to take part in what’s considered to be the most buoyant hotel market in Europe.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
