Cities’ hotel revenues under pressure

THE recession is continuing to hurt hotel revenues in Manchester and Liverpool, accountants PKF said today.

Figures from PKF Hotel Consultancy Services record falls iin occupancy levels, room rate and rooms yield.

Between January and June this year, Manchester hoteliers experienced a 15.7% decline in rooms yield compared to the same period last year. This was a combination of a 4.6% fall on occupancy and an 11.7% drop in room rate from £85.63 to £75.60.

The picture is the same in Liverpool – figures to the end of June show a 22.5% decline in rooms yield from £61.94 to £48.02.

Occupancy was down 10.8% and room rate down 13% as Liverpool’s 2008 Capital of Culture status continues to skew the figures.

Jane Jackson, head of tax at PKF Liverpool, commented, “Hoteliers across the region have certainly had a difficult year so far, but there are some signs to suggest that the industry’s sufferings have started to slow down. 

“The figures for June show that the cities were able to achieve a smaller decrease in occupancy than experienced hitherto, which is a positive sign.

“Most hoteliers are struggling to maintain historical room rates, however, and this is ultimately depressing rooms yield for the time being.”