Insider Media Limited

Birmingham’s hoteliers finished 2010 with revenue per available room (revPAR) up 6.1 per cent on the previous year. The positive findings were revealed by business advisory firm Deloitte, which also suggested that “caution” may be needed by the city’s hoteliers in 2011.

Hotel performance figures for the year-end 2010 reveal 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 experienced occupancy levels drop during 2010, occupancy in Birmingham increased by 3.9 per cent, from 63.5 to 66 per cent.

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.”

Pritchard named the city’s annual German Christmas Market, which draws thousands of visitors to Birmingham during the festive season, and the Conservative party conference as factors in the tourism boost.

However, looking ahead to the next year, he said: “With future demand for hotel rooms in London and the regions beginning to weaken, caution may well be the buzz word for next year.

“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.”

Research was conducted on behalf of Deloitte by STR Global.