London hotels reported a significant uplift in August as a result of the Olympics and Paralympics, whilst regional operators also saw yields rise.
Hotels in the capital recorded a 48.5% increase in rooms yield to £135.35, up from £91.12 in August 2011. This was the result of a 49.8% year-on-year rise in room rate from £110.22 to £165.05 and a 0.8% drop in occupancy from 82.6% a year ago to 82.0%.
In the regions, room rate rose by 5.7% from £59.22 to £62.61 and occupancy fell by 2.4% to 75.6%, compared with 77.4% this time last year. Rooms yield consequently improved by 3.2% from £45.87 to £47.35.
Robert Barnard, partner for Hotel & Hospitality Consultancy Services at PKF, commented: "The results show that, after a lacklustre July, hotels across the country were eventually able to make the most of one of the most highly regarded sporting events in living memory.
"In over 30 years in the industry, I can't recall ever seeing a year-on-year increase in rooms yield of almost 50% so it's fair to say that it will have exceeded expectations. That said, the numbers are somewhat exaggerated by the fact that London hotels normally discount rates in August whilst the corporate market takes a break.
"Meanwhile, outside of the capital, there are indications that the continued popularity of ‘staycations' has given hoteliers a much-needed fillip in an otherwise still stagnant market.
"It will be interesting to see what legacy the Games leave for the UK hotel sector over the coming months. Previous host cities have reported a post-event hangover but London may yet prove to be more resilient as it has long since been considered a global destination in its own right and didn't need the Olympics to put it on the map."Preliminary data for August 2012 PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,400 partners and staff operating in over 29 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm's web site is www.pkf.co.uk