Occupancy up but profit is down in city hotels

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PORTSMOUTH’S hotel occupancy rate has increased slightly this summer.

Business advice and accountancy firm BDO says occupancy rates are up 2.7 per cent from June 2012, to 85.2 per cent capacity.

However, the firm said room rates and revenue had fallen in the same time, with the price per room dropping by 9.6 per cent from £78.83 in June 2012 to £70.78 in June this year.

Revenue – called yield in the residential industry – fell by 7.2 per cent from £65.01 to £60.30.

Chris Driver, audit director at BDO in the south, said: ‘It is encouraging seeing operators across the south still performing well in terms of occupancy figures year-on-year, although this appears to have been achieved by having to discount rates against the backdrop of a continually competitive marketplace and the gradual recovery in the economy.

‘It appears that the bank holiday season and good weather has treated hoteliers kindly in the last quarter.

‘The market remains challenging, but the sector is, as always, putting up a strong fight.’