The West Midlands hotel sector experienced a double digit revenue increase during June, according to the latest report from accountancy and business advisory firm BDO LLP.
The firm’s hotel survey found that Birmingham rooms yield (the industry term for revenue) rose by 19%, compared to an average increase of 2.4% in regional UK.
Hotels near the airport also bucked the national trend with an increase of 24.1% compared to the same period last year. This rise comes amidst most airport-based hotels across the country witnessing a fall in occupancy numbers.
In Birmingham, occupancy levels increased by 14% to 69.2% in June 2013; however they have fallen behind the high levels experienced at the end of Q1 (73.6% in March), proving that conditions are still challenging.
The peaks and troughs in demand mean Birmingham hotels are using discounted pricing to coax punters through the doors.
The average price paid for hotel rooms in the city was £48.65 in June, compared to £74.48 in Manchester and £58.45 in Leeds. Meanwhile, hotels close to the airport demanded an average price of £90.76, one of the highest outside London and the South East.
Toby Stephenson, partner at BDO LLP in Birmingham, said: “Although prices paid and occupancy levels are still quite low compared to other cities, the double digit revenue growth is positive and indicates an upturn in form for the hotel sector. Solihull and airport footfall have contributed a lot to West Midlands’ performance in the last quarter.”
Birmingham played host to a number of popular events in June, including the Sainsbury’s Athletics Grand Prix, and Bon Jovi and Rihanna concerts, bring more people to the city.
Toby Stephenson adds: “Events and concerts in the region, combined with the bank holiday season and good weather, have given hoteliers a welcome boost in the last three months. The market remains challenging but the sector is, as always, putting up a strong fight.”
