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The absence of a major sporting event has resulted in slow growth and a dip in occupancy for hotels in London, according to preliminary figures released by business advisory firm, BDO LLP.
London hotels have seen modest growth in May, with rooms yield averaging at £97.89, up 2.1% on last year and room rate increasing by 4.1% to £117.27.
However, occupancy in the capital fell by 1.9% to 83.5% compared to 2013, when trading was boosted by the UEFA Champions League Final held in Wembley.
Regional hotels, on the other hand, have seen strong increases in room rate and rooms yield in May. Hotel operators in the regions saw an increase in rooms yield to £45.42, and an 8.9% jump on last year, while the average room rate rose by 8.4%when compared to May 2013 to £59.85.
Occupancy for regional hotels also increased by 0.5% to 75.9%.
Robert Barnard, partner at BDO LLP, said: “After a strong start to the year in both London and regions, we have seen the regions pull ahead in the last month.
“Two bank holidays have certainly had an impact as holidaymakers escape to the country for the long weekends, but the real deciding factor for the capital has been the absence of a major sporting event.
“The actual occupancy level achieved of 83.4% in London does, nevertheless, reflect robust trading conditions in the capital.
The UEFA Champions League Final hosted at Wembley in May 2013 saw an influx of tourists from the continent, while the past month has been relatively quiet in comparison with the build up to the World Cup. It remains to be seen how this major international tournament will impact the UK hotel sector.”
