UK hotels see 2.4 per cent increase in room rates in November
UK hotels saw an increase in both room occupancy and average room rates in November.
Occupancy grew by 0.6 per cent to 79.1 per cent, while there was a 2.4 per cent increase in room rate to £120.03 for the month, according to the latest data tracking full-service hotels from HotStats.
Hotels in the UK have fought back to profitability following a 4.9 per cent year-on-year decline recorded in Q1 2018. The growth in November was led by increases across all revenue centres, including rooms (3.1 per cent), food and beverage (3 per cent) and conference and banqueting (3.2 per cent).
“Whilst other other investment sectors, particularly retail, appeared to wobble ahead of the Christmas break and the unknowns of 2019, the UK hotel market is remaining resilient,” said Michael Grove, director of intelligence and customer solutions, EMEA, HotStats. “The stronger performance in the second half of 2018 means hotel owners and operators in the UK are all set for another year of profit growth following the 5.1 per cent increase in 2017.”
In line with growth across the UK, properties in the challenging Aberdeen market recorded a slight 0.8 per cent increase in profit per room in November.
Hotels in the city saw a 2.8 per cent increase in room occupancy, which grew to 72.5 per cent, as volume in the city maintains its recovery. This was accompanied by a 7.3 per cent drop in room rates to £59.04.
The increase in volume in November helped to drive ancillary revenues, with a 48.7 per cent increase in conference and banqueting.
“It has been a very tough few years of trading for hotels in Aberdeen due to the fall out of demand, as well as increases in supply, illustrated by the poor rate performance this month, which was ahead of only August,” said Grove. “However, the fact that hoteliers have managed to generate a profit increase from a fairly substantial RevPAR decline is highly commendable.”
In contrast, properties at the other end of the UK in Bournemouth saw an 8.1 per cent increase in achieved average room rate to £79.72.
Published Date: 11/01/2019