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UK hotel rates increase by 1.3 per cent in November

The increase came alongside a 0.6 per cent decline in room occupancy to 78.5 per cent
04/01/2018

Pictured: York has seen a 2.7 per cent increase in average room rate

UK hotels saw a 1.3 per cent hike in room rates to £116.56 in November 2017, according to the latest worldwide poll of full-service hotels from HotStats. 

The increase came alongside a 0.6 per cent decline in room occupancy to 78.5 per cent.

Pablo Alonso, CEO of HotStats, said: “Rising costs will be an issue for hoteliers into 2018; a 4.4 per cent rise in the National Living Wage, increases in pension contributions and food, beverage and energy price rises will take their toll on UK hotel profitability.

“With a limit on how much hoteliers can seek to uplift revenues, they will need to focus on cost management and productivity improvement to deliver increased bottom line profit and, therefore, preserve or grow capital values.“

In the same period, York saw a 2.7 per cent increase in average room rate across its hotels to £94.14, which was coupled with a 0.1 per cent decline in room occupancy to 79.6 per cent.

Alonso said: “York’s hoteliers should be applauded for their ability to leverage a strong profit performance from a relatively limited revenue increase due to highly efficient cost management.”

Meanwhile, hotels in Stratford-upon-Avon saw occupancy levels fall to 64.9 per cent in November and a 0.2 per cent drop in average room rate.

Traditionally, Stratford-upon-Avon’s performance peaks during the summer months, as the market is dominated by demand from the leisure segment.


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