Business travel coupled with good weather in June has continued to boost regional hotels’ performance, according to preliminary figures released today by business advisory and accountancy firm, BDO LLP.
June was another strong month in the growth trend experience by regional hotels recently.
While UK tourists made the most of the warm weather, sustained economic growth began to drive business travel with meetings, conferences and events increasing in the regions.
As a result, rooms yield was up by 7.2% to £50.05 and room rates up to £63.17, an increase of 6.3% on the same time last year.
Occupancy also increased by 0.9% from June 2013.
London continued to grow throughout the first half of 2014, with the only exception of May, where the comparison with the UEFA Champions League Final weighed slightly on the performance.
However, June results show a return to a steady growth, with rooms yield increased by 3.1% to £112.04 when compared to the same period last year. Average room rate was also up 3.4% to £128.84, while occupancy remained fairly stable at 87%.
Robert Barnard, partner at BDO LLP, comments: "The return of the corporate market, and more generally, sustained economic growth should continue to positively influence both London and regional performance.
"London has recently topped a list of the most popular global city destinations* and the latest ONS results indicate that visits to the UK by overseas residents were up 11.7% in the first quarter of the year**.
Data such as this highlights the UK’s attractiveness as a destination for overseas visitors while British tourists are still opting to stay at home."
* 2014 Mastercard Global Destination Cities Index
** ONS Overseas Travel & Tourism Provisional Results, Q1 2014