Occupancy rates in Britain’s hotels have declined for the second year running.
The latest annual survey by Pannell Kerr Forster (PKF) shows that average occupancy fell by 1.4% to 75.8% in the year 1999/2000. This follows a decline of 0.5% in 1998/1999. The market peaked in 1997/1998 when occupancy rates reached a 19-year high of 77.7%. The survey is based upon 350 hotels across Britain.
PKF points out that the decline is slight and that occupancy levels still exceed levels reached in the last peak in the 1980s. Average room rates actually grew, by 1% to £78.43.
The largest drop in occupancy rates was in Wales, down by 3.4% to 70.7%. Scotland had the largest fall in rooms yield, down 0.9% to £44.56.
Melvin Gold, director of PKF’s hotels and leisure group, said: “The UK hotel market has passed its peak, but this is not set to be followed by any dramatic drop in performance. I expect hotel occupancy to fall further during 2000. Overall rooms yield in 2000 will see a fall in real terms.
“The underlying strength of the British economy means that the hotel sector is likely to pick up as early as 2002.”
EGi News 22/08/00
