UK Hotels Still See Falling Rates

The PKF has now reported yet another disappointing month for UK hotels. It now seems that London hotels are still seeing their rates drop. PKF went on to say that they saw rates drop by 7 percent in August compared to the same month in 2008. This was a difference from £109.77 to £102.07.

It has also been reported that the year on year room yield for the city has fallen by 9.2 percent, from £91.96 to £83.53. TRI Hospitality Consulting said that its HotStats figures show that rates in the capital have fallen by 7.3 percent for the month.

TRI went on to say that the August month still saw a drop compared to the 13.1 percent fall that was seen in July. The company went on to add that after the July strategy of volume over rates seemed not to help the current situation, many London hotel chains are now taking a more measured approach to their rates.

TRI did go on to say that, despite the bullish strategy in August, London hotels were able to reduce the performance gap in total revenue per available room. They were able to get this down to its lowest levels since March of 2009.

Of course, both PKF and TRI have reported that a slight drop in occupancy levels has occurred in London hotels. TRI said that there was a year on year fall of 2.5 percent to just 81.9 percent. Of course, most experts have already predicted that the hotel industry was not going to see any kind of recovery this year and quite possibly until the end of next year. Although rates are not falling as hard as they were during the start of the recession, things have yet to start to recover.