Economic slowdown starts to hit Bath’s hotels

February 6, 2012
By

The economic slowdown is taking its toll on Bath's hotels with room occupancy declining 4.1% to 72.4% in November. 

This meant that despite a 2.2% rise in room rate to £88.69 compared to a year earlier, overall, room yields fell 2% from £65.50 a year ago to £64.21 in November.

But compared to the rest of the country, Bath hoteliers are still doing better than average business. Nationally, even though occupancy levels were up 1%  to 70.4%, the average room rate fell 2.7% to £61.77 while room yields dropped 1.9% to £43.48.

Neil Dimes, partner in charge of the south west office of PKF Hotel Consultancy Services who compiled the figures, said: “When viewed against a backdrop of plunging business and consumer confidence, lacklustre retail sales and the ongoing concerns about the future of the euro, these results suggest that Bath hoteliers are having a tough time battling against the economic storms that are effecting all parts of the UK economy.

“Let’s be honest, the sector is facing a challenging operating environment that is unlikely to improve significantly anytime in the near future.  However, hotel managers appear to have learnt the lessons from 2008-09 and are much better equipped to respond effectively this time around.”

Comments are closed.

ADVERTISE HERE

Reach tens of thousands of senior business people across the Bath area for just £75 a month. Email info@bath-business.net for more information.