HotStats UK Chain Hotels Market Review – May 2014
South East surges: London loses
Outside London, in May South East hoteliers achieved a growth of 4.9% in gross operating profit per available room (GOPPAR), according to the latest data from HotStats. The UK provinces in general also saw growth for the 5th consecutive month.
Glasgow goes from strength to strength
In May, Glasgow hoteliers confirmed a great period ahead of the Commonwealth Games with TRevPAR and GOPPAR growing by 14.1% and 27.6% respectively, according to the latest data from HotStats.
Occupancy reached 85.2% (+4.7 percentage points) while ARR climbed by 11.9% to £75.41 leading to an impressive RevPAR growth of 18.4% to £64.25. Similar movements were recorded in non-rooms revenues with meeting room hire per available room increasing by 17.0% and as a result, TRevPAR went up by 14.1% to £109.81. Cost control helped to enhance the overall performance with a DOPPAR surge of 16.3% to £64.03. Despite a slight increase in overheads per available room (+0.6%), GOPPAR rose by 27.6% to £40.88 representing a gross profit conversion of 37.2% from 33.3% for the same period last year.
Chester races ahead
Chester hotels recorded positive year-on-year performances across all key indicators in May with TRevPAR and GOPPAR increasing by 7.3% and 24.2% respectively, according to the latest data from HotStats.
Hoteliers experienced a 12.5% increase in RevPAR driven primarily by ARR (+10.3%). With the exception of the Residential Conference segment rate declining by -5.2%, all other segments' rates increased ranging from the lowest rate derived from Tours / Groups (+17.9% to £54.44) to the highest rate derived from the Best Available Rate segment (+4.7% to £97.13). Despite the fact that travel agents' commission as a percentage of rooms revenue increased by 1.0 percentage point to 9.8%, rooms operating profit went up by 2.0 percentage points to 67.6%.
Mixed performances were achieved in non-rooms departments; TRevPAR surged by 7.3% to £111.76 but efficient operating cost control helped to boost DOPPAR by 13.1%. Despite overheads rising, payroll decreased by 1.6 percentage points and GOPPAR shot up by 24.2% to £32.77.
The hotels profiled in this report are drawn from the HotStats database and reflect the portfolios and distribution of the hotel chains that we survey and which operate in the full-service sector.
Please note: The data samples are reviewed and rebased each year to reflect the changes in the HotStats survey base. As a result, performance ratios published last year may differ from those contained within this report.
Occupancy (%) is that proportion of the bedrooms available during the period which are occupied during the period.
Average Room Rate (ARR) is the total bedroom revenue for the period divided by the total bedrooms occupied during the period.
Room RevPar (RevPAR) is the total bedroom revenue for the period divided by the total available rooms during the period.
Total RevPar (TRevPAR) is the combined total of all revenues divided by the total available rooms during the period.
Payroll % is the payroll for all hotels in the sample as a percentage of total revenue.
GOPPAR is the Total Gross Operating Profit for the period divided by the total available rooms during the period.
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