The troubled hotel industry recovered well during February, but renewed terrorism fears could badly damage the sector in coming months, according to a new report.
Quarterly figures released by accountancy firm PKF revealed a rise in occupancy and prices in hotels across the UK last month, with those in London doing particularly well.
Hotels in the capital saw occupancy increase by 5.6 per cent to 73.3 per cent, while average room rates stood at £97.48 – a rise of 2.6 per cent. Average room yields soared 8.3 per cent to £71.45.
Establishments outside London also performed credibly, with occupancy up one per cent to 68.1 per cent and the average room rate climbing two per cent to £62.10. Room yields rose 3.1 per cent to £42.30.
The figures reveal a significant improvement in the fortunes of hoteliers, who have suffered badly over the past three years, along with the rest of the tourism industry, due to the foot-and-mouth outbreak, the September 11 attacks, the increased fear of terrorism and the downturn in the global economy.
However, PKF said that the recent terrorist atrocity in Madrid and government warnings of a similar attack in Britain could severely impact on tourist numbers, resulting in a fall in hotels’ takings.
Robert Barnard, of PKF, said that overall the news was good for hoteliers.
“The positive figures across the board are certainly encouraging – particularly in the light of issues such as the US flight cancellations early in the year.
“So far, the hotel market seems to be overcoming the hurdles it has faced in 2004. London’s performance is particularly strong and this is very good news.
“Foreign guest figures for February were all on the increase, however, the recent bombing in Madrid could affect customer confidence which could have an impact on European hoteliers in the coming months as security becomes even more of an issue,” he said.
