Hotel sector reports local visits on the riseApr 01, 2013
Business advisers PwC say that room occupancy rose to more than 68% in December, compared to 63% 12 months previously.
The figures indicate that the hotel market in the city is continuing to perform reasonably well, say the firm’s hospitality and leisure sector experts.
Despite concerns that weaker economic prospects are likely to dampen performance in the sector in 2013, the latest data shows that regional hotels, such as those in Milton Keynes, benefited from a strong finish to 2012.
The average daily rate of hotel rooms in Milton Keynes rose to £52.39 in December, up from £51.08 in the same month of 2011.
Revenue per room also increased year-on-year to £35.70 from £32.30.
Owen Mackney, partner and hospitality and leisure sector expert at PwC in Milton Keynes, said: “Nationally, we are expecting another challenging year for the hotel sector and, to some extent, the weak economic outlook is likely to affect regional towns like Milton Keynes more than London.
“However, the data for the last month of 2012 is positive and demonstrates how hoteliers in Milton Keynes have been successfully bucking the trend by improving their occupancy, ADR and RevPAR rates.”
Year-to-date results in 2012 also showed similar successes in Milton Keynes, as occupancy, ADR and RevPAR rates rose by 0.5%, 3% and 3.5% respectively in comparison to 2011.
Mr Mackney said: “A strong finish to 2012 has no doubt boosted hoteliers and leisure sector investors’ confidence for the short term but it is unlikely that this pace of growth will continue in 2013.
“This is due to a number of factors including the weaker economic outlook and the fact that 2012 was the second wettest year on record, which is expected to encourage more people to holiday abroad this year.
“That said, a weaker pound could be advantageous to UK tourism as a whole.”