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UK hotel industry shows signs of recovery

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UK hotel operators were given a boost during May after occupancy, room rate and rooms yield all showed signs of growth, compared with the same period last year.

According to new figures from PKF Hotel Consultancy Services, London's hotels saw occupancy increase by 3.3 per cent to 84 per cent, while room rate (8.9 per cent) and rooms yield (12.4 per cent) also grew. Regional operators witnessed a 5.3 per cent increase in occupancy, with Birmingham hotels reporting a 47.4 per cent increase in room rate due to the European Gymnastics Championships and a number of conferences.

Cities across northern England reported signs of recovery, with a 5.4 per cent occupancy growth in Manchester. However, Cardiff saw occupancy and room rate fall by more than 4.4 per cent. Robert Barnard, partner for hotel consultancy services at PKF, said: "May can often be a tricky month for hoteliers as it is bookmarked by two bank holiday weekends.

"Overall, the figures show that there seems to have been minimum disruption. This is particularly heartening following the disruption caused by the ash cloud in April." The news follows the latest Insolvency Index from Experian, which saw a slight increase in leisure and hotel insolvencies in May. According to the index, 123 operators became insolvent compared with 121 in May last year.

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UK hotel operators were given a boost during May after occupancy, room rate and rooms yield all showed signs of growth, compared with the same period last year.
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