Birmingham hotels saw a slight increase in occupancy levels as
the summer drew to a close, but they are still facing hard times as
yields continue to fall.
Figures from PKF Hotel Consultancy Services show that in
September, occupancy in the 1,900 Birmingham hotel rooms surveyed
was up one per cent at 73.9 per cent compared with the same month
in 2008.
However, the average achieved room rate (AARR) was down 13 per
cent to £66.30 and the rooms yield fell 13 per cent to
£49.00.
AARR is the rooms revenue divided by the total number of guest
rooms occupied during the year and yield is calculated by
multiplying occupancy by AARR.
For the year to date, occupancy is down 7.7 per cent to 64.2 per
cent, AARR is down 10.9 per cent to £65.35 and yield is down
17.8 per cent to £41.95.
Robert Barnard, partner for Hotel Consultancy Services at PKF,
said: "There is no doubt that the hospitality sector is finding it
challenging in the current recessionary climate.
"Given continued uncertainty, it is not surprising that the
industry has seen little overall growth so far this year. But, on a
positive note, it is important to note that occupancy levels remain
healthy at between 70-80 per cent across the country with signs
that performance is moving towards some stability."
In the UK outside London, room rate was down 7.8 per cent to
£67.69. Combined with a fall in occupancy, from 76.6 per cent
to 74.2 per cent, the regions experienced an overall decrease of
10.8 per cent in rooms yield to £50.22.
London hoteliers continued to achieve robust occupancy levels in
September, but again at the expense of room rate.
In London, room rate was down 3.7per cent year on year from
£135.70 last September to £130.74 this year. Room
occupancy was strong, with hoteliers filling 85.0 per cent of their
rooms, up 3.5 per cent on last September. Overall, rooms yield was
down 0.3 per cent from £111.50 to £111.13.