Image: London hotels experienced sharp declines

UK hotel operators experienced sharp declines in occupancy levels during June as economic concerns at home and overseas brought the sector's recent recovery to an end.

According to figures released by PKF Hotel Consultancy Services, London hotels saw occupancy drop by 9.0 per cent to 82.0 per cent - compared with 90.1 per cent in June 2011.

This resulted in a 7.1 per cent year-on-year reduction in rooms yield from £147.28 this time last year to £136.87. Hotels outside London faired slightly better, with an average fall of 3.0 per cent in occupancy from 78.3 per cent to 76.0 per cent.

Robert Barnard, partner for Hotel Consultancy Services at PKF, said: "It's important to keep these results in context - occupancy remains high in absolute terms, with London hotels continuing to sell well over 80 per cent of their available rooms during the month.

"The impact of the extended Diamond Jubilee bank holiday at the start of the month appears to have been insufficient to hold back the economic headwinds. Hotel operators throughout the UK will be hoping that the Olympics and Paralympics will have a more significant effect."