Hotel rates in the UK are beginning to accelerate as the economy improves, according to the latest data on the accommodation sector.
Business consultancy BDO said that London room rates went up by 7.6 per cent in October to an average of £131.66, compared to a rate of £122.36 in the same month last year.
Hotel room rates outside London rose by 1.7 per cent year-on-year to an average of £59.32 in October – up from £58.34 in 2012.
Occupancies in London during October improved to 87.5 per cent (up from 86.7 per cent last year) while outside the capital, hotels filled 76.1 per cent of their rooms (up from 72.6 per cent in 2012).
BDO partner Robert Barnard said: “In aggregate, this is the strongest set of results that we’ve seen so far this year, demonstrating that momentum is continuing to build in the sector.
“The data suggest that hotel operators may have turned a corner during the summer after a particularly sluggish start to the year, and are now making an important contribution to the UK’s economic recovery.”
BDO’s hotel reports are compiled from data across a range of hotels and locations in the UK – mainly properties in the three and four-star markets.