UK Hoteliers see Signs of Recovery in May

Hoteliers in the UK saw a boost during the month of May after rooms yield, room rates and occupancy showed signs of growth in comparison to the same month last year. PKF Hotel Consultancy Services has revealed new figures that show that hotels in London saw occupancy rise 3.3% to 84%, while room rates increased 8.9% and rooms yield grew 12.4%.

Regional hoteliers saw occupancy increase 5.3%, room rate rose 0.5% and rooms yield also increased 5.8%. Operators in Birmingham reported a 47.4% rise in room rate due to the European Gymnastics Championships and many conferences. Occupancy for the city rose 8.7%.

Cities throughout northern England saw occupancy grow, with a rise of 5.4% in Manchester. The city also saw a 0.7% increase in room rate and a 6.1% increase in rooms yield. Leeds had a mix of results, with an occupancy increase of 4.4%, a fall in room rate by 0.3% and a rise in rooms yield by 4.1%. However, occupancy and room rates fell by 4.4% in Cardiff, while rooms yield also declined 8.7%.

PKF Hotel Consultancy Services partner Robert Barnard said that the month of May can be tricky for hoteliers, because there are 2 bank holiday weekends during the month. Overall, the numbers show that there appears to have been minimum disruption, he continued. This is great news after the ash cloud in April caused such an issue for travelers, he added, and they hope to see this momentum continue during the summer, particularly since experts anticipate that many will take their holidays in the UK.

These figures come after Experian revealed their latest Insolvency Index. It showed that there was a slight increase in hotel and leisure insolvencies during the month of May. The index says that 123 operators became insolvent, in comparison to the 121 that did so during the same time last year.