UK hoteliers are continuing to feel the effects of the global economic downturn with a fall in room rates, occupancy levels and room yields last month.
Figures released by PKF Hotel Consultancy Services showed that in London, room rates were down 5.6% in November compared to the same period last year from £137 to £129. Occupancy levels fell 6% to 79.5% and room yields dropped 11.1% to £103.
The report said the falls in the capital were mainly due to the lack of business travellers to London as companies look to cut costs but added the demonstrations in Thailand, which closed many of the city’s airports, could also be partly to blame for the decline in November’s figures.
In regions around the UK, hotels suffered a similar fate during November. Room rates were down 2% from £76 in 2007 to £75 this year while occupancy fell 5.6% to 69%. Room yields were down from £56 in 2007 to £52 in 2008.
This month so far figures show regions which have managed to hold their own are now suffering. For example, room yields in Manchester and Leeds were down 11.3% and 3.1% respectively while Edinburgh reported occupancy levels down 5.3%.
However, for the year to date, London hotels have seen room rate growth of 4.7% on the same 11 months last year and room yields were up 3.2%.
Robert Barnard, partner for Hotel Consultancy Services, said: “As there is still no end in sight to the current economic downturn, it is unfortunately probable that hoteliers will have to endure further knocks in 2009.”