Positive end to the year form Birmingham’s hoteliers

Birmingham’s hoteliers finished 2010 in positive fashion with revenue per available room (revPAR) up 6.1 per cent on the previous year, according to business advisory firm Deloitte.

Hotel performance figures for the year-end 2010 show revPAR in Birmingham increased from £37 in 2009 to £39. The average daily rate for hotel rooms also showed signs of improvement, increasing from £58 to £59 year on year.

Compared to some UK cities, which saw occupancy levels drop during 2010, occupancy in Birmingham increased by 3.9 per cent, from 63.5 to 66.

Alistair Pritchard, tourism, hospitality and leisure partner at Deloitte in Birmingham, said: “Despite a challenging end to the year, caused by one of the harshest winters on record, the city’s hotels still managed to put in a good performance.

“The annual German Christmas Market, which draws thousands of visitors to Birmingham during the festive season, would have helped boost occupancy levels, likewise the Conservative party conference earlier in the year.

However, according to Mr Pritchard, the outlook for 2011 is more challenging for the city’s hoteliers.  

“With future demand for hotel rooms in London and the regions beginning to weaken, caution may well be the buzz word for next year,” he added.

“With GDP expected to rise by just 1.3 per cent this year, the increase in VAT to 20 per cent and more challenging operating conditions for retailers, the hotel industry faces another difficult 12 months. 

“On the positive side, however, revPAR is expected to grow by 4.4 per cent in the regional market in 2011.”

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