UK hotels have room to celebrate as rates increase

The report, by business advisors PKF, shows that hotels in London in particular saw an average room rate rise of 5.5 per cent to £108.63, boosting profits per room to £89.04.

The figures represent signs of consistent recovery from a sector lull in late 2001, early 2002, which saw levels of tourism in the capital decrease due to the aftermath of 9/11.

Outside London, UK hoteliers saw a good performance in September with an average room rate up by 5.5 per cent to £66.72 leaving a healthy rooms yield of £52.55.

Robert Barnard, partner for hotel consultancy services at PKF, said: "UK hoteliers have turned in a strong performance during September this year, with comfortable increases in room rate and rooms yield.

“Occupancy levels both in London and the provinces, are robust enabling hoteliers to increase average room rates.”

However, Barnard is still cautious about the overall picture of the hotels industry.

“Next month’s figures will be fairly critical, however, as that is when we will really be able to measure how far hotel performance has come since the aftermath of the Iraq war last year and the ongoing impact of 11 September 2001."