London hotels have increased increase their occupancy rates in May, while the regions suffer, according to figures released by PKF’s hotel consultancy services.
Occupancy across London’s hotels was up from 81% in 2008, to 82.1% year on year in May.
However, the increased occupancy has come at a cost, with room rates in the capital falling 7.3% to £116.49.
It was a bleaker picture in the regions where occupancy was down on the same period last year, from 74.2% to 70.1%. Average room rates fell from £76.93 last year, to £69.75 this year.
Liverpool struggled in May, although its figures were skewed by last year’s strong performance during its year as European Capital of Culture.
Manchester also benefited from Liverpool’s status last year, leading to slightly distorted drops this year, with occupancy down 6%, and room rates down 9.8%.
Partner for hotel consultancy services at PKF, Robert Barnard said London’s year-round appeal has pushed up occupancy figures, but at a cost to rates and room yield.
He said: “The regional story is a different one, with the cities losing out in the downturn on both an occupancy and rate front.
“However, places such as Edinburgh have proved to be an exception to this rule as the city, like London, again managed to increased occupancy levels.
“With the summer holiday season beginning, hopefully we may also see some better regional results if families, as predicted, do choose to holiday in the UK this year.”