Hotel operators charged peak 2018 season prices in March 2023
Occupancy rates of UK hotels also increased from 64.9% in February to 68.7% in March, while rates increased from 65.2% to 70.2% in London
Hotel operators have continued to outperform the wider hospitality sector as they were able to charge the same room rates as peak season prices in 2018, despite March’s wet weather, according to the RSM Hotel Tracker.
The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows average daily rates of occupied rooms increased from £128.94 in February to £135.51 in March.
Meanwhile, in the London market room rates increased from £196.21 to £203.48, with the rates charged in March 2023 being similar to those charged in July 2018, the peak season for the sector.
Occupancy rates of UK hotels also increased from 64.9% in February to 68.7% in March, while rates increased from 65.2% to 70.2% in London.
Revenue per available room increased from £83.63 in February to £93.14 in March in the UK and from £127.90 to £142.84 in London. Gross operating profits of UK hotels were up 7% to 32% last month and up 6% to 37.6% in London.
Chris Tate, head of hotels and accommodation at RSM UK, said: “The hotel sector had another strong month in March thanks to buoyant demand from consumers. Three years on since the start of the pandemic, the hotel sector is back to following pre-Covid seasonal patterns, with a growth in occupancy, room rates and gross operating profits in March.
“Given rising costs and low consumer confidence, we would expect to see people cutting back in this area, but the hotel sector is enjoying a strong performance as consumers choose to cut back elsewhere such as dining out.”
He added: “Hoteliers will be hoping this continues. Upcoming major events such as the King’s Coronation and Eurovision will provide another boost for the hotel industry. Added to that, the number of overseas visitors should increase as they attend these events and are likely to extend their visits.”
