Hotels hit by room rate deflation

Hotels across much of the region suffered from falling room rates during January, although the proportion of rooms occupied rose, according to PKF Hotel Consultancy Services.

In Manchester, occupancy levels rose by 2.1% from 61.3% to 62.6%, however room rate slumped 12.1% from £62.57 to £55.03. These poor figures resulted in a fall in room yield from £38.35 to £34.45, a 10.2% fall when compared to the same time last year.

Hotels in Liverpool posted similar results with a 0.6% increase in occupancy rates from 61.3% in 2011 to 62.6% in 2012. This success was counteracted by a drop in room rate which fell 6.4% from £59.56 to £55.75. Overall this led to a 5.9% fall in rooms yield from £34.53 to £32.50.

Chester posted improved results when compared to Manchester and Liverpool. Occupancy rates were up 11.6% from 43.6% to 48.7%, and although room rate fell 9.4% to £46.51, hotels in the city enjoyed rooms yield growth of 1.2% from £22.39 to £22.65.

Blackpool bucked the trend and posted positive results. Occupancy rose by 16.1% from 42.5% in 2011 to 49.3% in 2012. Room rate fell from £60.41 to £59.15, but thanks to the positive occupancy results this led to growth in yield of 13.7% from £25.65 to £29.16.

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