Birmingham hotel RevPAR up 6% on back of conferences, says Deloitte

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

Hotel performance figures for
last year, according to Deloitte’s research, show revPAR in Birmingham increased from
£37 in 2009 to £39. The average daily rate for hotel rooms also showed moved up
slightly, from £58 to £59 year-on-year.

Deloitte’s report, which uses
hotel performance figures sourced by STR Global, also noted that although some
UK cities had been reporting
a drop in occupancy levels during 2010, occupancy in Birmingham increased four
per cent to 66.

Tourism, hospitality and
leisure partner at Deloitte in Birmingham, Alistair
Pritchard, said that, despite a challenging end to the year, caused by one of
the harshest winters, the city’s hotels 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,” he said.

However, Pritchard warned 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
said.

“With GDP expected to rise by
just one 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 four per cent in the regional market in 2011,” Pritchard
added.

Chief Executive of Marketing Birmingham, Neil Rami,
pointed out the hotel sector was a major contributor to Birmingham’s visitor
economy, worth £168m annually. 

“It received a boost in 2010 largely due to a
series of major events: 66,000 delegates were brought into the city for IPEX,
the Liberal Democrat and Conservative Party conferences, contributing to the
stand-out figures for March, May and October.

Responding to the Deloitte cautionary note
for 2011, Rami said the confidence investors are showing in the hotel sector
underlines the long term opportunities for Birmingham’s meetings and hospitality industry

“There are 23 new hotels currently in the
planning or development stage, including the Sanguine developments at The Cube,
Cumberland House and Kennedy Tower.”

Do you have a news story for Conference News? Email: pcolston@mashmedia.net

Paul Colston

Author

Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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