The hotel room rates, revenues and occupancy levels for UK and United States hotels are still under a lot of pressure as they continue to fall for the last three months of the year. In the United States, average daily rates slumped 5.9 percent to $96.04, according to data from STR. The industry’s occupancy levels also fell by 2.9 percent compared to 2008 to just 48.1 percent. Revenue per available room did not do any better and decreased by 8.6 percent year on year to finish at just $46.22.
Among the hotel chain segments, the upper upscale and the luxury segment were the only areas that were able to report an increase in any of the the metrics. The upper upscale segment’s occupancy rose 3.6 percent to 62.6 percent followed by the luxury segment with a 0.7 percent increase to 61.1 percent.
However, the UK is seeing the same thing. Combined data for October and November from PKF Hotel Consultancy Service showed that average room rates were down 7.8 percent from £65.66 in 2008 to £60.52 this year. Occupancy levels also dropped in the UK, down 3.5% from 71.4% to 68.9%.
Of course, London was able to stop the downward trend with occupancy levels climbing by 5.9 percent. This meant that London hoteliers managed a 4.2 percent increase in room yields to £103.94 over October and November.
The partner for Hotel Consultancy Services at PKF, Robert Barnard, said that this year has been a difficult one for the leisure and hotel industry. This is not surprising given the current recension. On a positive note, however, occupancy remains strong in certain cities, and hoteliers should take this as a good sign.