Birmingham hotels enjoyed a strong March and outperformed the UK as a whole in a boost to the leisure sector.
Figures released by business advisory and accountancy firm BDO revealed operators in the city saw occupancy rise by 10.3 per cent to 73.6 per cent, compared with 66.7 per cent in the same month last year.
Although room rate fell by 5.1 per cent from £48.54 to £46.08, the all-important rooms yield metric still increased by 4.7 per cent from £32.40 in March 2012 to £33.91.
Elsewhere in the region, Stoke-on-Trent saw rooms yield grow by 1.5 per cent on the back of a three per cent rise in occupancy, whilst rooms yield in Stratford-upon-Avon declined by four per cent as a result of weak occupancy and room rate performance.
Further afield, rooms yield dropped by 5.7 per cent in London and rose by 0.5 per cent in the rest of the UK.
Toby Stephenson, a partner in BDO’s Birmingham office, said: “This is a very impressive performance by hotels in Birmingham, particularly when compared to the country as a whole.
“Operators have capitalised on the busy calendar of events at venues such as the NEC and NIA. They have also shown that they are increasingly willing to discount and offer packages to tempt customers through the door.
“This type of skilful revenue management can be an effective stop gap measure but it’s not a sustainable long term strategy. That’s why coordinated marketing campaigns – such as the ‘See More, Feel More’ cultural initiative recently launched by Visit Birmingham – are becoming increasingly important for the sector.”