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East Midlands Chamber News

Hotel study shows rates are stabilising

The Nottingham hotel sector is continuing to overcome economic adversity, according to hospitality and leisure experts at PwC.

Latest regional figures reveal occupancy rates in the year to June 2013 reached 67 per cent, up from 63 per cent in the same period last year.

The data, provided by STR Global, highlights a noticeable stabilisation in trading levels among hotels in Nottingham, despite slow economic recovery dampening consumer spending confidence.

The average daily rate (ADR) for hotel rooms in Nottingham stayed flat at around £49, while revenue per room increased to £33 in the year to June 2013, up from £31 in the same period in 2012.

Owen Mackney, partner and hospitality and leisure sector expert at PwC in the Midlands, said: “These results are encouraging, especially as we have not seen evidence of such stability in the sector for quite some time.

"It is still a difficult trading climate, however, and there are continuing pressures on room rates in particular. This is unlikely to change in the foreseeable future as consumers continue to book late in the hope of finding a bargain and use the pricing transparency of the internet to help them make a choice.”

PwC is expecting rates in cities like Nottingham to keep improving in 2014.

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