Hotel rates rise in 2008 run-up

Aug 8 2007 by Tony McDonough, Liverpool Daily Post

LIVERPOOL hotels are experiencing a growth in revenues as the city becomes more popular with visitors in the run up to Capital of Culture next year.

A study by accountancy firm Deloitte reveals that during the six months to the end of June this year, the average room rate at Liverpool’s hotels has risen to £68 per night, compared to £63 for the same period last year.

Revenue per available room – or revPAR – is also up from £46 per room to £48. The occupancy rate is down slightly at 70.2%, against 73.9% last year, but this fall is put down to an increase in the number of rooms over the past 12 months.

Earlier this year Liverpool saw the opening of the Malmaison luxury hotel, which is situated at Princes Dock on the waterfront.

Deloitte Liverpool partner Sean Beech said any occupancy rate above 70% was a good figure and he pointed out this meant the city was outperforming other locations, including Leeds, Sheffield and Newcastle.

He added: “Anything above 70% means we are doing very well and I think Capital of Culture will improve that even more.”

Paul Lupton, head of corporate finance at Deloitte in the north, also said: “The continued growth of global financial services and merger and acquisition activity is leading to strong demand for Liverpool hotels.

“With occupancy at 70.2%, we would expect average room rates in Liverpool to grow significantly in the next year, as regeneration moves on even further.”

The Deloitte HotelBenchmark survey showed that the hotel sector across the UK was maintaining healthy levels of growth despite the impact of rising interest rates on consumer spending.

tonymcdonough