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Regional hotels have reported a strong performance in May as domestic tourism remained high over the month’s two bank holidays, according to new figures.
The preliminary figures – released by business advisory and accountancy firm BDO – found that average room rate for regional hotels rose by 5.3% to £64.31 during the month, while occupancy was up 2.2% to 77.4%. Meanwhile rooms yield increased by 7.7% to £49.77.
London hotels also experienced growth, albeit more modestly. Average room rate increased to £126.09, up 1.6% on May 2014, while occupancy grew by 1.2% to 83.9% and rooms yield was up 2.8% at £105.82.
Robert Barnard, partner at BDO, said the leisure industry is going from strength-to-strength as the economy improves. He said due to low interest rates and oil prices giving consumers more money to spend, coupled with a rise in domestic tourism, “this trend is here for a while”.
He added: “Hoteliers should bear in mind that the new post-recession economy is very much consumer-led. The saying ‘make hay while the sun shines’ is very appropriate, but they should also be preparing for bumpy times ahead with uncertainty in Europe around Greece.”
