UK hoteliers have cause to celebrate with news of a marked improvement in performance, according to a new report.
The report, by business accountant PKF, shows that, despite the economic gloom experienced by many small business sectors over the Christmas period, London hotels reported a year on year increase in daily room rates of 8 per cent to £100.80.
Although occupancy fell during the period by 0.8 per cent, London hoteliers were still afforded a healthy rooms yield of £70.22.
Robert Barnard, partner for hotel consultancy services at PKF, said: "December’s hotel performance has shown an improvement almost across the board.
“These figures are very good news and allow hoteliers to kick off 2005 from a stronger position than this time last year. It's encouraging that we can start the year on a positive note.”
The figures cap off a year of recovery for the sector, which was acutely affected by the ripples of September 11th during 2001 to 2003.
Outside the capital, hoteliers saw average room rates increase by 3.9 per cent to £63.26 and occupancy down 0.8 per cent to 61.5 per cent, pushing rooms yield up 3.1 per cent to £38.91.
However, UK hoteliers know that 2005 will still have its fair share of uncertainties.
Barnard, said: “The next few months could see a number of events which could impact on the market such a s the general election and the decision on the Olympic 2012 bid.
“However, with room rates moving in the right direction, hoteliers will now be concentrating on further boosting occupancy, which has been growing at a slower rate, in order to grow rooms yield.”
