Source: HotStats Limited

North East hotels grow bottom line

The UK provincial hotel market registered positive year-on-year movements across all key performance indicators for the month of July. Hotels in the North East recorded a 3.3% increase in gross operating profit per available room (GOPPAR) according to the latest data from HotStats.

Hoteliers in the North East achieved a 1.4 percentage point increase in occupancy to 84.6%, though this came at the expense of a marginal decrease in average room rate (ARR) of 0.4% resulting collectively in a 1.3% uplift in revenue per available room (RevPAR) to £58.44. Due to mixed performances in non-rooms revenues, total revenue per available room (TRevPAR) growth levels were softened to 0.4%.

Payroll decreased by 0.5 percentage points helping to deliver the 1.9% increase in departmental operating profit per available room (DOPPAR) to £57.40. Despite a marginal increase in overheads per available room (+0.2%), GOPPAR increased by 3.3% to £30.88 compared to the same period last year.

Newcastle performs

Newcastle hoteliers recorded positive movements for the month of July, with TRevPAR and GOPPAR climbing by 3.4% and 9.1% respectively.

Hotels in Newcastle experienced a rise in occupancy of 1.5 percentage points to 84.6%, along with an ARR growth of 2.1%. The two highest rate increases were attributed to the tours/groups (+36.2% to £47.53) and conference (+9.6% to £78.31) segments. Altogether, this led to a RevPAR growth of 3.9% to £57.32. TRevPAR increased by 3.4% to £96.06 most notably due to a 22.8% increase in meeting room hire revenue per available room for the month. DOPPAR also rose by 6.1% thanks to profitable operating cost control alongside a payroll decrease of 0.9 percentage points.

Profits drop in Oxford

Hotels in Oxford, on the contrary, experienced a challenging month of July with occupancy levels declining by 5.1 percentage points to 86.5%. The city posted negative movements across all KPIs aside from ARR. Even though there was a 1.9% uplift in ARR, RevPAR still dropped 3.8% to £105.32.


An overall decrease in non-rooms revenue per available room from food (-17.9%), beverage (-16.9%) and meeting room hire (-24.2%) led to the TRevPAR level decline of 7.5% to £142.06. There was a slight increase in payroll costs (+0.3 percentage points) which added to the significant GOPPAR decline of 14.2% to £63.45, representing a gross operating profit conversion of 44.7% for the month of July.

About HotStats

HotStats provides monthly P&L benchmarking and market insight for the global hotel industry, collecting monthly detailed financial data from more than 8,500 hotels worldwide and over 100 different brands and independent hotels. HotStats provides more than 550 different KPIs covering all operating revenues, payroll, expenses, cost of sales and departmental and total hotel profitability.

Sita Banigo
Sales Executive
HotStats Limited