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Hotel Industry News |
Tuesday December 2nd, 2008 |
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UK hotel bookings remain firm despite credit crunch concerns |
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Scottish hotels show strongest UK performance |
Despite a reported softening in economic conditions, the UK hotel market has maintained strong growth in the last quarter. The latest results from the HotelBenchmark Survey by Deloitte show that across the UK revPAR (room revenue per available room) has increased 6.8% year-to-September, with five UK cities posting double-digit increases. However, the rate of growth is down on that seen in the six months to the end of June when revPAR had increased 8.3%.
Scotland saw the best hotel performance of the three countries in the United Kingdom with revPAR growth across the country of 8.9%. Aberdeen had the highest growth of any UK city, with revPAR increasing 18.6%. High room rates from corporate demand in the oil and gas industry means the average hotel room in Aberdeen now costs £74 a night. Glasgow also achieved revPAR growth of 13.1%.
London hotels have continued to experience high occupancy levels (82.7%), which have underpinned 9.9% growth in average room rates. The average hotel room in the capital now costs £126 a night, up from £114 in 2006. RevPAR as a result is up 10.4%.
Commenting, Marvin Rust, Hospitality Managing Partner at Deloitte said: 'Fears of a slow down following this summer's global financial crisis have not yet materialised in the UK hotel market. Whilst growth has slowed slightly from the 8.3% seen during the first six months of this year, we remain positive about the outlook for hotel performance.
'For the hotel industry, demand is driven by both the business and consumer markets. Most companies continue to generate profits and corporate bookings remain strong and consumer spending has not yet declined as unemployment levels remain low.
'Although the pound remained strong in the last three months, it did lose some value against most other major currencies which encouraged international visitors from countries in the Eurozone as well as from Asia. Visitors from these regions helped make up for the decline in US visitors.'
However Rust added a note of caution: 'If the UK and other key economies do slowdown, any reduction in travel as a result of reduced consumer and company spending, could be as early as quarter two next year.'
Regional performance:
Cardiff: Strong hotel performance in September as a result of demand during the Rugby World Cup. RevPAR growth of 23% in September and a 15.3% increase in room rates during the month. Year-to-date revPAR growth was 2.2%.
Bournemouth: 10.8% increase in revPAR in September after hosting the Labour Party conference on the 23-27September. Bournemouth has seen modest year-to-September revPAR growth of 1.3%.
Sheffield: revPAR decreased 4.7% during September, contributing to a decrease of 1.7% since the beginning of the year. Rising competition, severe flooding over summer and fewer events are all blamed for the decline.
Manchester: revPAR decreased 7.3% in September, the biggest fall of any UK city. However, the decline is against a background of 4.0% growth in the year-to-date. Hoteliers in the region believe falling rates are partly the result of reduced weekend travellers than in the previous year.
Leeds: Year-to-date revPAR growth has fallen to 1.0% down from 3.9% in the six months to June). RevPAR decreased 3.1% in September due to an over supply of budget hotels.
UK City Performance - nine months to end September 2007
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Deloitte is the UK?s fastest growing major professional services firm. It is based in 21 UK locations, has over 10,000 staff nationwide and fee income of ?1,246 million in 2003/2004. Deloitte is the UK practice of Deloitte Touche Tohmatsu, a global leader in professional services with over 120,000 people in 140 countries. |
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