Hotels continue to struggle

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Hotels in Sheffield and Leeds have continued to struggle to match last year’s results during March, according to the latest survey by PKF Hotel Consultancy Services.

Paul Clarke, partner at the accountancy firm, said: “The volatility of the hotels market in the region was once again all too evident in March.

“April’s figures may prove to be a washout as a result of the bad weather. However, we are hopeful that the results for the following months will show some improvement as we see the effects of the three bank holiday weekends and families staycationing.”

Sheffield hotels suffered a change in fortune after seeing occupancy and room rates rise between the end of 2011 and the start of 2012.

Occupancy rates at Sheffield hotels stood at 60.3 per cent in March, down by 9.2 per cent compared with the same time last year, while room rate was down by 9.7 per cent at £49.03, leading to an 18.1 per cent fall in rooms yield – the revenue earned per available room - from £36.08 in March 2011 to £29.57 this year.

Leeds hotels suffered a 2.8 per cent fall in occupancy levels from 73.6 per cent to 71.6 per cent, while room rates fell 3.2 per cent to £57.02 from £58.91 in March 2011 and overall rooms yield fell 5.9 per cent from £43.38 to £40.83.

York strengthened its position, with occupancy rates up 4.2 per cent from 72.2 per cent to 75.2 per cent and average room rate up 6 per cent to £62.12, resulting in what PKF describes as “an impressive 10.5 per cent rise in rooms yield to £46.71.”