Golden Olympic performance for hotels in capital; SPORT EVENTS MEANT MORE STAYED IN THE CITY.
THE Cardiff hotel sector was lifted by a strong performance in August aided by the Olympics, according to new statistics released by business advisory firm Deloitte in Wales.
The hotel performance figures, collated by STR Global, show hotels in the capital experienced their strongest occupancy levels for the month of August since 2008 and their highest Average Daily Room (ADR) rate in at least seven years.
Cardiff's hotel occupancy rate for August was 75%, an increase of just under 5% year on year, generating an increase in revenue of 26%. ADR rate for the month reached PS61.46, an increase of more than PS9 compared with August 2011, while RevPAR (Revenue Per Available Room) rose by nearly PS10 since 2011 to PS46.15.
This is not only the highest RevPAR figure recorded for 2012 but the highest August rate since the figures were first collated in 2006.
Paul Evans, director at Deloitte in Wales, said: "A strong performance in August will have been a welcome boost to the hotel sector in Cardiff.
"The 2012 Olympic and Paralympic Games will no doubt have had a positive influence on occupancy rates with teams, staff and spectators staying in the city. The impact on performance is a prime example of the benefits that the 2012 Games have brought to the region.
"In addition, the Speedway event at the Millennium Stadium provided a further uplift to August's figures. A rise in occupancy represents a rise in visitors to Cardiff and therefore increased spend throughout the city - which can only be positive news."
The hotel occupancy statistics reveal that it is the first August in at least six years where the supply of hotel rooms did not grow.
Between 2007 and 2011, supply increased by almost 22%.
The figures also show that Saturday was the day of the week which attracted the most trade to city hotels with an occupancy rate of 91%, followed by Friday with 84% and Thursday with 81%.
In comparison, Sunday was the weaker performing day of the week with an occupancy rate of just 56%.
Mr Evans continued: "As a growing city with a calendar of popular events, Cardiff has been an appealing location for developers with several new hotels opening each year. "With supply having remained stable for the time being, hotels in Cardiff can consolidate their positioning in the market and work together to attract more visitors to the city."
Further west, hotels in Swansea experienced their strongest August since 2006.
Swansea's hotel occupancy rate for August was 85%, an increase of just under 3% year on year, generating an increase in revenue of 6.5%.
August was also the best performing month this year for Swansea's RevPAR, which reached PS42, up by over PS2.60 year on year.
Meanwhile, Swansea's ADR rate for August was PS50, up just under PS2 compared to August 2011 and at a similar level to those reported in 2009 and 2010.
However, hotels in Newport experienced a drop of 1.6% in occupancy in August compared to the same period in 2011. But hotels in the city did see an increase in their ADR rate of nearly 7% to PS60.91, generating a monthly revenue of PS2.2m.
This translates into a RevPAR of PS46.40, up 5% year on year.
Supply of hotel rooms in Newport has remained at a flat rate with no growth since early 2010.
Meanwhile, demand for hotel rooms during August this year dropped by 1.6%, the first decrease since 2007. It also follows a decline of 6.7% in demand in July.
Saturday was the day of the week which attracted the most trade for city hotels during August with an occupancy rate of 88%, followed by Fridays and Wednesdays with 81%.
Meanwhile, Sundays were the weaker performing day of the week with an occupancy rate of 65%.
Children play by the Olympic rings on the City Hall lawn in Cardiff
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|Publication:||Western Mail (Cardiff, Wales)|
|Date:||Nov 14, 2012|
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