Hotels performing ahead of national average

HOTELS  in the North West are continuing to perform above the regional average to record an encouraging first quarter, according to figures released by accountancy and business advisory firm BDO.

During the first quarter of 2015, hotels in Manchester, Liverpool, Chester and Blackpool all witnessed increased occupancy levels, which is collectively up 6.1% to 69.4%. The average occupancy level across regional UK is 68.7%.

Rooms yield – otherwise known as revenue per available room – in quarter one, has jumped an impressive 10.9% to £41.08 – which is 2% higher than the UK regional average of £40.27.

This also aligns with the results of BDO’s recent Hotel Britain Report 2015, which revealed how hotels in the North West outperformed their London counterparts last year in terms of revenue growth.

Chester and Liverpool have been the region’s top performers, with steady and consistent increases month-on-month.

Hotels in Blackpool by comparison suffered in January, with a 1.7% decline in occupancy, and revenue at £16.59 (down 3.4%).

Similarly, despite a strong January and February, Manchester hotels encountered a minor dip in performance in March, with occupancy and average achieved room rate (AARR) dropping by 0.9%.

Manchester does, however, still have the highest AARR in the region at £69.70, and this was up 5.5% for the quarter compared with the same period last year.

Philip Storer, partner at BDO in the North West said: “The first quarter can be typically slow for the leisure industry, particularly in January as the Christmas hangover means consumer spending is frugal – as was evident in Blackpool.

“Despite this, hotels across the North West are continuing to not only record strong results but perform above the UK regional average.  The figures for Q1 are incredibly encouraging and we are on course for a strong year, with even more hotel openings in the pipeline to meet the demand.”