Small businesses in the hotel industry enjoyed a solid October, despite the continued economic gloom, according to new statistics.
In the present climate, slow trading makes hotel insurance even more crucial than usual, as money is tight and any large payouts could potentially be fatal for smaller firms.
But despite the economic malaise, figures from PKF Hotel Consultancy Services suggest that October was actually a strong month for the industry as a whole.
The figures reveal that room yields in London rose by 1.4 per cent over the year from an average of £111.14 in October 2010 to £112.70 this year.
Although occupancy was down slightly – dropping by 2.1 per cent – it remained high at 87.1 per cent and was accompanied by a rise in average room rates from £124.97 to £129.43.
Outside of London, regional performance was slightly more strained, with room yields falling by 0.9 per cent from £43.37 to £42.99. At the same time, the 2.8 per cent decline in room rates from £59.39 to £57.75 was offset by a 1.9 per cent rise in occupancy from 73 per cent to 74.4 per cent, according to PKF.
Robert Barnard, a partner for hotel consultancy services at the company, put the figures in context.
"These results demonstrate that the hotel sector is not immune to the challenges facing the economy as a whole, but is holding up well," he said.
"Hotels across the country are operating in an unhelpful trading environment that will not improve any time soon, so it is encouraging to see room yield growth in London and an occupancy rate that remains close to 90 per cent."
He suggested that the market for meetings, incentives, conferences and exhibitions remains crucial to regional hotels in the autumn, but warned that the corporate market remains "stubbornly subdued" at present.
However, with the right strategies in place, Mr Barnard believes that hoteliers can "win the battle".
